BUENOS AIRES, April 30 - Paraguayan President Santiago Peña is due to undertake a state visit to Taiwan beginning May 7, officials in Asunci n and Taipei said, in a trip designed to expand diplomatic and commercial cooperation between the two governments.
Authorities said Peña will head a senior government and business delegation to Taiwan from May 7 to 10. The visit is scheduled to include the signing of cooperation agreements and a meeting with Taiwanese President Lai Ching-te. Paraguay's presidency indicated the itinerary will span at least four days and focus on deepening bilateral ties and trade links.
The trip is being staged against an intensifying diplomatic push by China to persuade Paraguay to shift recognition away from Taiwan. Paraguay remains one of only 12 countries that maintain formal diplomatic relations with Taiwan, and it is the last such ally in South America. Officials in Asunci n have repeatedly framed relations with Taipei as rooted in shared democratic values.
There are overlapping descriptions of the visit's status: Paraguayan authorities describe the journey as Peña's second visit to Taiwan while in office, while Taiwan's foreign ministry described it as his first state visit.
Paraguay's export model to China is constrained by the two governments' diplomatic arrangement. Because Beijing does not trade with countries that formally recognise Taiwan, Paraguayan beef and soy producers cannot sell directly to the Chinese market. Instead, shipments destined for China move via intermediary markets, a process that reduces margins for Paraguayan exporters.
Meanwhile, imports from China into Paraguay have surged. Official data show imports reached a record, topping $6 billion in 2025.
Beijing's outreach to Paraguay has involved a range of visits by Paraguayan political and civic actors. More than a dozen Paraguayan lawmakers, journalists and opposition figures have visited China since late 2023, a dynamic that has fed a growing domestic debate over whether maintaining diplomatic relations with Taiwan imposes economic costs.
These developments are occurring within a broader geopolitical contest in Latin America. The Paraguayan context features renewed efforts by Washington under President Donald Trump to reassert influence in the region and to deepen cooperation on defense and critical minerals, according to officials and observers referenced by Paraguayan sources.
Pe a1a, whose presidential term runs until 2028, has publicly dismissed the argument that Paraguay should change its diplomatic recognition for immediate economic gain. His administration has reaffirmed its support for Taiwan despite the increase in Chinese engagement and shifts in public sentiment.
The Paraguayan foreign ministry did not immediately provide a comment on the planned state visit.
Context for markets and logistics
For Paraguay's agricultural sector, particularly beef and soy producers, the current diplomatic stance shapes market access and route economics. Limitation on direct trade with China forces exporters to route shipments through third countries, adding layers to logistics and compressing producer returns. At the same time, strong inflows of Chinese manufactured goods are reshaping the domestic import landscape.