Paraguay Backs Trump’s Monroe Doctrine and Bets on It

Paraguay’s president has emerged as Washington’s most vocal ally in Latin America. In a Bloomberg Television interview after meeting Secretary of State Marco Rubio on Thursday, Santiago Peña called the revival of the Monroe Doctrine under Trump‘s December national security strategy “a good idea” — a striking endorsement from a region historically wary of U.S. interventionism.

Peña framed the alliance as fundamentally different from the 19th-century original. “We are completely different, and the type of partnership we have built is stronger. We see each other as allies,” he said. “It’s not that the U.S. will colonize the countries in the Western Hemisphere.”

On Maduro and Venezuela

The Paraguayan leader went beyond rhetoric. He praised the January military operation that captured Venezuelan dictator Nicolás Maduro, saying it exposed deep left-right divisions across Latin America. After the failed 2024 Venezuelan elections, Peña argued, removing Maduro was the second-best option available.

He warned the path to democracy will be long, drawing on Paraguay’s own experience after the Stroessner dictatorship fell in 1989. “It took about three or four years, so I hope it’s sooner, but it will be around that time,” he said. Peña also joined Trump’s Board of Peace — alongside Argentina and El Salvador — at its inaugural meeting Thursday.

Security, Taiwan and the China trade-off

Peña’s alignment runs deeper than speeches. In December, Paraguay signed a Status of Forces Agreement with the U.S. allowing American military personnel to train and operate on Paraguayan soil. The deal still awaits congressional approval but signals a step-change in bilateral defense ties.

Paraguay is South America’s sole country recognizing Taiwan, a position Peña said will not change. The stance has cost it dearly: a trade deficit exceeding $6 billion (~R$34 billion) with China last year, largely shut out of Beijing’s regional investment boom.

Yet the economy has delivered. Growth hit 6% in 2025, with the central bank projecting 4.2% this year. Since taking office in August 2023, Peña has secured Paraguay’s first investment-grade ratings from S&P and Moody’s and is preparing bond issuances of just under $1 billion (~R$5.6 billion). He projects 6-7% growth over the coming decade — a bet that alignment with Washington and Taipei, rather than Beijing, will keep paying off. This is part of The Rio Times’ daily coverage of Paraguay affairs and Latin American financial news.

Deep Dive

For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America

Read More from The Rio Times

• USA & Canada Intelligence Brief for Monday, April 6, 2026
• Europe Intelligence Brief for Monday, April 6, 2026
• Cuba Exile Leadership Battle Heats Up as Transition Hopes Rise