On August 15, 2023, Santiago Peña, hailing from the right-wing Colorado Party, was inaugurated as Paraguay’s President after winning 43% of the votes in April.
Born in Assunção in 1979, the 44-year-old economist previously served in international institutions like the IMF and was a finance minister during the Horacio Cartes regime (2013-2018).
With Colorado Party’s longstanding dominance in Paraguay since its founding in 1887, Peña’s election underscores its supremacy, only briefly interrupted by Presidents Fernando Lugo (2008-2012) and Federico Franco (2012-2013).
Peña’s international agenda includes renegotiating aspects of the Itaipu accord, joint efforts against organized crime in South America, and fostering economic collaboration among Latin American countries.
ITAIPU: Peña discussed the Itaipu hydroelectric plant’s surplus energy sales to Brazil in July with Brazilian President Luiz Inácio Lula da Silva.
Historically, Brazil and Paraguay shared the power produced equally, though Paraguay uses merely 15%.
Peña expressed intentions to reassess the treaty’s financial stipulations to leverage Itaipu energy for Paraguay’s growth, focusing on infrastructure improvements like transport routes and waterways.
MERCOSUR: On his visit to Brazil, Peña echoed Brazil’s sentiment that European environmental stipulations in Mercosul negotiations are stringent.
He highlighted the importance of finalizing the over-two-decade negotiation between Mercosul and the European Union.
Despite praising Mercosul’s potential, he advocated for more political will and fewer ideological barriers.
TECHNOLOGY: Peña emphasized enhancing technology and goods export, seeking closer integration with Brazil.
He envisions both countries as “chief trade partners,” leveraging Paraguay’s young workforce and energy resources.
VENEZUELA & ARGENTINA: Peña aims to renew bilateral ties with Venezuela to boost regional integration.
He commented on the nation’s deep-rooted political issues regarding Argentina, emphasizing the need for significant economic reform irrespective of the winning party in the upcoming elections.
He also acknowledged Brazil’s potential economic aid to bolster Argentina’s industry.