Paraguay Opens Door To U.S. Military Cooperation, Testing Regional Trust

Key Points

• Paraguay and the U.S. signed a SOFA in Washington, setting rules for U.S. military and civilian activity in Paraguay.
• The pact follows a May arms-purchase memorandum and is presented as a response to trafficking and cross-border crime.
• Brazil’s refusal to label groups like the PCC as “terrorists” could become a flashpoint as key details remain unpublished.

The United States and Paraguay have signed a military framework that allows U.S. personnel to carry out agreed activities in Paraguay, a move officials frame as a boost against organized crime but one that could strain ties with Brazil.

The Status of Forces Agreement (SOFA) was signed in Washington on Monday by U.S. Secretary of State Marco Rubio and Paraguay’s foreign minister, Rubén Ramírez Lezcano.

The U.S. State Department said it sets clear rules for the presence and work of U.S. military and civilian personnel, facilitating training and cooperation on humanitarian and disaster response. The full text has not been released.

The deal follows a May memorandum between the two countries’ defense ministries to facilitate Paraguayan arms purchases through the U.S. Foreign Military Sales program.

In November, Paraguay’s Senate foreign affairs and constitutional affairs committees issued favorable opinions on that memorandum. The security rationale is rooted in Paraguay’s role as a corridor.

The material describes the country as a transit route for cocaine produced in Bolivia and Colombia, with shipments moving toward Brazil and other markets.

It also highlights the First Capital Command, or PCC, a Brazilian criminal organization that operates across the border and inside Paraguayan prisons.

Paraguay Becomes Flashpoint in U.S.-Brazil Security Tensions

A Brazilian intelligence count cited in the report identified 699 PCC members in Paraguay. Paraguay also faces the Paraguayan People’s Army (EPP), which authorities classify as a terrorist organization.

The material links it to kidnappings, extortion, bank robberies, and attacks on police and soldiers, and says it remains a rural threat despite weakening in recent years.

The report presents the partnership as part of a wider U.S. effort to counter China’s growing influence in the region. Paraguay recognizes Taiwan and has no formal diplomatic ties with Beijing, but still sees strong trade and growing Chinese corporate investment.

For Brazil, the flashpoint is definition and jurisdiction. The material says Brasília has resisted U.S. pressure to label the PCC and other criminal groups as “terrorists.”

Critics argue that if U.S. activity in Paraguay targets those networks, it could turn a shared security problem into a bilateral dispute. Without the document, the size, duration, and legal protections of any U.S. presence remain unknown.