By Analía Rojas | 2024-08-15

ASUNCIÓN -- The signing of a memorandum of understanding for cooperation between Paraguay and Taiwan on August 12 marks the latest step in strengthening their relationship and solidifying their stance against increasing pressure from China.

Under the agreement, Taiwan will provide a certain amount of uncompensated aid to the Paraguayan government from 2023 to 2028, the Paraguayan Foreign Ministry announced.

Paraguayan Foreign Minister Rubén Ramírez Lezcano and Taiwanese Ambassador José Chih-Cheng Han signed the memorandum of understanding on their countries' cooperation.

The agreement outlines collaboration on various projects, including security and defense, public health, housing and education, among other areas.

This agreement follows the recent visit of Han to Paraguayan President Santiago Peña and the Paraguayan Congress in late July.

Accompanied by a mission of Taiwanese business leaders, the Taiwanese ambassador discussed investment opportunities in technology, education and trade with Peña at the end of July.

Peña reaffirmed Paraguay's commitment to maintaining its relationship with Taiwan, stating that the country will not sever ties to secure a trade agreement between Mercosur and China.

He also emphasized Paraguay's potential to become a key player in the semiconductor industry, leveraging Taiwan's global leadership in the sector.

Peña highlighted Paraguay's appeal, citing its abundant energy resources, a young workforce and strategic proximity to major markets as key advantages.

One of the key aid projects includes the introduction of Taiwanese electric buses in Paraguay, a move that could lead to substantial modernization and cost savings for the country's public transportation system.

Independence and sovereignty

The decision to uphold relations with Taiwan has garnered significant interest and support from various international circles, being lauded as an example of diplomatic independence and sovereignty.

As part of this collaboration, the First Taiwan-Paraguay Technology Forum is scheduled for Asunción on August 19 and 20.

The forum will bring in Taiwanese specialists on matters including cybersecurity, artificial intelligence, semiconductors, bioinformatics, medical engineering, environmental sustainability and educational research.

'Commitment to Taiwan'

In May, Peña attended the inauguration of Lai Ching-te as Taiwan's new president, a gesture underscoring Paraguay's firm support of and close relationship with the Asian island.

"In this new presidential term, we reaffirm our commitment to Taiwan and look forward to exploring new opportunities for cooperation," Peña stated at the time.

His presence and remarks are particularly significant as Paraguay is the sole country in South America and one of the few globally to have official diplomatic relations with Taiwan.

In the past decade, several of Taipei's Latin American partners succumbed to Chinese commercial pressure, severing their ties with Taiwan to establish diplomatic and trade relations with Beijing.

In Latin America, only Guatemala, Haiti, Belize and Paraguay continue to support Taiwan.

Meanwhile, Chinese President Xi Jinping has intensified efforts to diplomatically isolate Taiwan, issuing warnings to Paraguay because of the close relationship between the two countries.

In 2020, the Paraguayan Senate refused another push by China to have Paraguay sever ties with Taiwan.

Even an offer of COVID-19 vaccines by Beijing failed to sway Asunción.

In its direct criticism of Paraguay, Beijing has urged Peña to reconsider his stance.

Xi's government is expecting Paraguay to follow the lead of other South American countries that have established diplomatic relations with China in exchange for significant economic and trade benefits.

Defying Beijing's pressures and offers, Paraguay has remained steadfast.

"My stance isn't driven by nostalgia or friendship," Peña stated in July 2023, "but by solid foundations and concrete facts that clearly show why maintaining a relationship with Taiwan is more beneficial than aligning with mainland China."