Paraguay's Pena reaffirms Taiwan ties and announces poultry market opening
Updated
Updated · Reuters · May 8
Paraguay's Pena reaffirms Taiwan ties and announces poultry market opening
13 articles · Updated · Reuters · May 8
In Taipei, Pena said Taiwan would open its market to Paraguayan poultry meat, while the two sides signed seven agreements covering technology, cybersecurity, finance and trade.
The visit came after China urged Paraguay to end ties with Taiwan, as debate grows in Asuncion over whether recognition of Taipei brings enough economic benefit.
Paraguay is Taiwan's last diplomatic ally in South America and one of 12 states recognising it; Lai said both democracies share values and Paraguay backs Taiwan internationally.
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Paraguay-Taiwan 2026 State Visit: $1.5B AI Computing Center, 20,000+ Jobs, and Strategic Resistance to China
Overview
In May 2026, Paraguayan President Santiago Peña's state visit to Taiwan led to the signing of key agreements, including a treaty on legal assistance, a cybersecurity MOU, and a landmark AI infrastructure project leveraging Paraguay's renewable hydroelectric power. This AI project is set to create thousands of jobs and position Paraguay as a South American tech hub, supported by local talent development through the Taiwan-Paraguay Polytechnic University. Paraguay, Taiwan's sole South American ally, faces strong Chinese pressure to switch recognition but remains committed, actively advocating for Taiwan's international participation. The partnership blends shared democratic values with strategic economic and technological cooperation, while navigating challenges like resisting coercion and scaling ambitious projects.