Paraguay Strengthens Relations with US, Israel, and Taiwan

Paraguay has emerged as a significant player in U.S. foreign policy, particularly through its strong ties with Israel and Taiwan. The South American nation has recognized Hamas and Hezbollah as terrorist organizations, aligning itself with U.S. interests. Notably, Paraguay is one of only 12 countries globally, and the sole one in South America, to maintain formal diplomatic relations with Taiwan, established in 1957. This unique partnership positions Paraguay as a valuable ally for the United States, particularly in enhancing collaboration among Israel, Paraguay, and Taiwan. The economic relationship between Paraguay and Taiwan has flourished, with bilateral trade increasing by over 600% in the past five years. Paraguayan President Peña has made multiple visits to Taiwan, reinforcing Paraguay's support for Taiwan in international forums such as the U.N. General Assembly. This partnership is crucial for the U.S. as it seeks to counter China's expanding influence in Latin America, where Beijing has been actively pursuing trade and military ties. From a geostrategic perspective, Paraguay's cooperation with the U.S. extends to counternarcotics initiatives and efforts to mitigate China's growing malign influence in the region. This collaboration is vital for maintaining stability and protecting U.S. interests in the Americas. The recent political and economic reforms in Paraguay have contributed to its notable economic growth, with the Heritage Foundation rating its economy as "moderately free," surpassing that of larger neighbors like Argentina and Brazil. Overall, the alliance between the United States and Paraguay is characterized by shared goals and mutual benefits, reinforcing their commitment to regional stability and economic development.