Paraguay’s president proposes Taiwan invest US$1 billion to maintain diplomatic ties

Paraguay, a significant exporter of soybeans and beef, has been denied access to the Chinese market because of its relations with Taipei, putting the government under pressure from the agricultural lobby.

Paraguayan President Mario Abdo Benítez has asked Taiwan to invest US$1 billion in his country to help it resist “enormous” pressure to change the diplomatic recognition of rival China, the Financial Times reported yesterday.

Paraguay, a significant exporter of soybeans and beef, is denied access to the Chinese market because of its ties with Taipei, which has put the government under pressure from the agricultural lobby.

“Imagine what [agricultural] producers say when meat prices fall and they can’t access China,” Abdo said.

“They ask, ‘Please, we need to open up to the Chinese market. What does Taiwan give us when we are a country that could sell all of its soybean and meat production to China?”

“We are working with the Taiwanese president so that the Paraguayan people feel the real benefits of the strategic alliance,” Abdo told the British newspaper during a visit to the United States.

“There is more than US$6 billion of Taiwanese investment in countries that do not have diplomatic relations with Taiwan. We want about US$1 billion to be invested in Paraguay,” he said.

“This would help us show the importance of this strategic alliance with Taiwan.”

Most of Taiwan’s remaining diplomatic allies are in Latin America and the Caribbean, but Paraguay is the only South American country that has relations with Taipei.

And Beijing has gradually pushed Latin American countries away from Taiwan with aid, credit, and trade offers.

A change in relations with Taiwan by Paraguay would be a significant blow to Taipei.

Taiwan’s Foreign Ministry said Abdo’s hope for US$1 billion in Taiwanese investment “would have profound significance for the strategic partnership between Taiwan and Paraguay.”

Panama, El Salvador, the Dominican Republic, and Nicaragua have all abandoned Taiwan in the past five years due to pressure from China, which views Taiwan as a rebellious province to which it lays claim.