Paraguay–Taiwan relations are foreign relations between Paraguay and Taiwan. Both governments established diplomatic relations on July 8, 1957. Paraguay is one of the 15 countries in the world that has diplomatic relations with Taiwan. Paraguay has had an embassy in Taipei since 1999. Taiwan has an Embassy in Asunción and a Consulate-General in Ciudad del Este. The two are antipodes of each other. Taiwan is also the second state in Asia to have diplomatic relations with Paraguay.
History
The governments of Paraguay and the Republic of China established diplomatic relations on July 8, 1957. Over the following decades, the two governments signed the Cultural Convention, Treaty of Friendship, and Conventions of Tourism and Investments. The partnership between the anti-communist governments of General Alfredo Stroessner and Generalissimo Chiang Kai-shek was quite natural. Many Paraguayan officers went for training in Fu Hsing Kang College in Taiwan. The ouster of Stroessner in 1989, and his successor Andrés Rodríguez's reinventing himself as a democratically elected president, were immediately followed by invitations from the People's Republic of China to switch diplomatic recognition. However, the experienced general and politician Wang Sheng who happened to serve as Taiwan's ambassador at the time, and his diplomatic staff, were able to convince the Paraguayans that continuing the relationship with ROC, and thus keeping Taiwan's development assistance and access to Taiwan's markets, would be more advantageous for Paraguay. As the ROC Commercial Attaché at Asunción, Tseng Cheng-te, explained later, "I tried constantly to figure out what we could buy from them. It was very difficult, because they have nothing to offer". Taiwan provided assistance to Paraguay on a number of economic development projects throughout the 1990s, and has extended large loans to Paraguay; as of early 2009, Taiwan's government was offering payment deferral on a $400 million outstanding loan. The bilateral relationship has been increasingly affected by China's economic growth and its rigid approach to the One China Policy. China is a major buyer of Paraguay's major exports, especially soy and beef. It has also made large investments in those sectors, directly affecting the Paraguayan economy. This has led to increasingly prominent debates within Paraguay over recognition policy. "While commercial ties increase, China may be gaining other forms of leverage over Paraguay; pro-China rumblings surfaced in late 2019 largely from meat producers whose market can be curtailed through phytosanitary regulations." Traditionally, Paraguayan diplomats at the United Nations backed regular proposals at the UN General Assembly sessions for the return of Taiwan into the United Nations' Organization. However, in the fall of 2008, the recently elected Paraguyan president Fernando Lugo announced that his country would not do so at the 63rd annuals session of the General Assembly. Under President Mario Abdo Benítez, in office since August 2018, Paraguay has emphasized a pro-Taiwan policy while also seeking commercial opportunities with China. "He has emphasized a desire to expand commercial relations with China, 'always respecting our historic friendship with Taiwan'."
Proposed FTA
In 2004, Taiwan and Paraguay attempted to negotiate a free trade agreement, but having to obtain approval from Paraguay's MERCOSUR's partners made the process difficult. As of April 2009, the proposed treaty was still described as being negotiated.
Contestation within Paraguay
In recent years, the bilateral relationship has been the subject of growing contention in Paraguay. Long and Urdinez note that China's growth increased Paraguay's opportunity costs, especially in the form of lost loans and investments from China during the commodities boom. However, Taiwan continued to enjoy support from many Paraguayan policymakers. In response to arguments that recognizing China was economically necessary, "Key Paraguayan elites have proactively pushed back against the idea that a change in recognition is inevitable or beneficial." On April 17, 2020, in the midst of the COVID-19 pandemic, a group of Paraguayan senators advanced a bill to urge the president to change Paraguay's recognition from Taiwan to China. The proposal was defeated 25-16. Proponents argued that China would provide greater medical aid to Paraguay, something Taiwan contested by increasing its own provision of assistance. The vote followed growing political pressure within Paraguay, especially from ranchers seeking greater access to the Chinese market for their beef exports.
