The United States has established diplomatic relations with Paraguay since 1861, some fifty years after Paraguay declared its independence from Spain. After independence, Paraguay experienced a mix of coups, civil war and dictatorships, with a more recent transition to civilian leadership and democratic elections. The United States supported the consolidation of Paraguayan democracy and the continuation of economic reform, countries of cooperation among the countries of the hemisphere.
The alliance between the United States and Paraguay is based on a long history of cooperation, strong common interests, important bilateral trade relations and mutual respect between our governments and individuals. Paraguay is a partner in hemispheric initiatives to improve cooperation in the fight against narcotic drugs, to protect intellectual property rights, to combat money laundering, trafficking in persons and other illegal cross-border activities. Paraguay has taken significant steps to combat illegal activity in the tri-border area compared to Argentina and Brazil. They also participate in antiterrorism programs and forums with their neighbors and the United States.
The United States looks to Paraguay, which has tropical forest and river resources, to engage in efforts to protect sustainable development.
U.S. Assistance to Paraguay
The U.S. Government aids the Government of Paraguay in stemming corruption, creating jobs, reducing rural poverty, and countering international criminal organizations operating in the country. A particular emphasis is placed on supporting vulnerable groups such as women, girls, indigenous peoples, and youth. U.S. assistance is aimed at improving the stability and security of Paraguay by strengthening democratic institutions and the rule of law, increasing economic opportunities, encouraging a more efficient business environment, and institutionalizing democratic reforms.
Bilateral Economic Relations
Paraguay has a small but rapidly growing open economy with a strong macroeconomic position and the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. There is a large subsistence sector and a large underground re-export sector, including the import of goods from Asia and the United States for re-export to neighboring countries. U.S.-Paraguay goods trade was $2.7 billion in 2017. U.S. exports to Paraguay include machinery, agricultural equipment, mineral fuels, toys, and sporting goods. U.S. imports from Paraguay include sugar, food oils, animal products, and wood products.
The United States is one of the largest foreign investors in Paraguay. More than a dozen U.S. multinational firms have subsidiaries in Paraguay, including firms in the computer, agro-industrial, telecom, banking, and other service industries. More than 80 U.S. businesses have agents or representatives in Paraguay. Paraguay and the United States discuss investment and trade priorities under a new Trade and Investment Framework Agreement, a bilateral mechanism to advance common investment and trade objectives.
Paraguay's Membership in International Organizations
Paraguay and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and the World Trade Organization. Both countries also share a partnership through 100,000 Strong in the Americas, which seeks to increase the number of U.S. students studying across the Western Hemisphere to 100,000. Our delegations cooperate on human rights in international fora such as the Inter-American Commission on Human Rights and the UN Human Rights Council.
