With the left threatening to break with Taiwan, China becomes a central issue in Paraguay’s election

Paraguay, the only South American country among the 14 that maintain diplomatic relations with Taiwan, goes to the polls on April 30 with this issue and, consequently, its relationship with China among the central themes of the election that will define its new president.

The two leading candidates in the polls, Santiago Peña, from the conservative Colorado Party, and Efraín Alegre, from the center-left Authentic Radical Liberal Party, advocate closer trade ties with China but disagree on the price at which this should be done.

Alegre promises to break relations with Taipei and establish them with Beijing. “Paraguay must have relations with China,” he said in an interview.

“Our interests in the livestock and grain sectors have suffered greatly. We maintain that critical position on relations with Taiwan because we don’t think we have enough return in that relationship.”

Peña, meanwhile, in an interview with Reuters news agency, said there would be “no change in that regard” if elected. “I will defend the historical relationship with Taiwan,” he assured.

In a meeting with business people, the Colorado Party candidate explained that, despite this position, he would try to increase exports to China if he is victorious at the polls.

“I believe that Paraguay should maintain a diplomatic relationship with Taiwan, but I also firmly believe that we have to have a political and economic strategy on the part of the public and private sectors on how to approach the Asian giant [China].”

“In this way, Paraguay has greater trade relations and a trade balance that today is clearly in deficit, in which China is our main supplier, but it is not our main market, where we take our products,” he justified.

It remains to be seen how Peña, who has been leading most of the polls, intends to do this since Beijing usually accelerates deals and makes investments in exchange for political positions.

In recent years, Panama, El Salvador, Dominican Republic, and Nicaragua have cut diplomatic ties with Taipei after Chinese pressure.

Paraguay has recognized Taiwan diplomatically since 1957.

China considers the island, administered separately since the end of the Chinese Civil War in 1949, part of its territory and plans to incorporate it.

Alegre, 60, is a lawyer in his third presidential bid.

He was Paraguay’s Minister of Public Works and Communications between 2008 and 2011 under leftist Fernando Lugo.

Peña, 44, is an economist. He served on the Board of Directors of the Central Bank of Paraguay.

He was Minister of Finance between 2015 and 2017 in the government of Horacio Cartes, the political godfather of the young candidate and the target of sanctions from the United States for corruption.

Alegre will have the difficult mission of removing from the government the Colorado Party, the party of the current president, Mario Abdo Benítez, that since 1948 has only failed to occupy the Paraguayan presidency during the governments of Lugo (2008-2012) and Federico Franco (2012-2013).

Lugo’s term in office was marked by scandals, as he admitted that he had had children with different women while still a bishop, and ended in impeachment for the accusation of responsibility in a confrontation between police and peasants during a repossession of a farm in the district of Curuguaty, which left dozens dead and wounded.

IN TAIWAN, BENÍTEZ PINNED ALEGRE

In 2021, Taiwan’s Foreign Minister Joseph Wu accused China of “vaccine diplomacy” with Paraguay.

“The Chinese government was very insistent in saying that if the government of Paraguay is willing to break diplomatic relations with Taiwan, they can get a few million doses of [Covid-19] vaccine from China,” he denounced. Beijing has denied the accusations.

Last month, on an official visit to Taiwan, Benítez said that relations with Taipei are maintained.

“In the face of continuing threats and the tense situation, the people of Taiwan have not abandoned their determination for peace and continue to play the role of a beacon of democracy in the region,” said the Paraguayan president, who took advantage of the visit to jab Alegre.

“It will be a historic mistake if the next president does not make a serious and responsible evaluation of the historic alliance that is already part of our common culture today,” Benítez said. “I think my country should continue

to deepen these bonds of friendship. Any leader who proposes a change [in this relationship] would be an incompetent politician; it would be something that would harm the possibility of the prosperity of our countries.”

With information from Gazeta do Povo