TAIPEI, May 8 - Paraguay’s president, Santiago Pena, used a formal welcome in Taipei on Friday to reaffirm his nation’s commitment to its diplomatic relationship with Taiwan, saying the partnership is rooted in common democratic principles and will continue.
Pena was received by Taiwan President Lai Ching-te at a ceremony in the capital city. Paraguay is among a small group of countries that maintain formal diplomatic ties with Taiwan, and the visit comes as China steps up efforts aimed at persuading the South American nation to change course. China on Thursday called on Pena to end Paraguay’s relations with Taiwan.
Landlocked Paraguay is currently Taiwan’s only diplomatic ally in South America and is also the largest country on the continent by land area. Speaking at the welcome event, Pena reiterated his government’s stance.
"Paraguay deeply values this relationship and reiterates its commitment to continue supporting Taiwan in a strategic alliance based on shared values such as democracy, freedom, human rights, and the rule of law," Pena said.
President Lai responded by highlighting common political principles. "The Paraguayan government has long spoken up for Taiwan in the international arena and firmly supports Taiwan’s international participation," Lai said, adding that he expected Pena’s visit to deepen friendship and tighten cooperation between the two governments. "I believe that through President Pena’s visit this time, the friendship between Taiwan and Paraguay will become even deeper and cooperation even closer."
The visit is Pena’s second trip to the democratically governed island since taking office. China claims Taiwan as part of its territory and maintains that Taiwan lacks the trappings of a separate state - a position Lai and his government reject.
Pena’s administration has consistently framed relations with Taipei as grounded in shared democratic values. At the same time, Beijing has increased its outreach to Paraguayan political figures. A report in March outlined how more than a dozen Paraguayan lawmakers, journalists and opposition figures have visited China since late 2023, a trend that has fed debate within Paraguay over whether maintaining ties with Taiwan carries economic costs.
Observers note Pena’s bilateral ties beyond Taipei. In February, he visited Washington for a United States event described as a new board of peace involving U.S. President Donald Trump, at which Trump referred to Pena as a "young handsome guy."
The ceremony in Taipei and the accompanying public statements from both presidents emphasize the political and diplomatic basis of the Paraguay-Taiwan relationship, even as external pressure from China grows and internal discussions in Paraguay continue about the balance between diplomatic recognition and economic considerations.
Summary
President Santiago Pena reaffirmed Paraguay's commitment to Taiwan at a formal welcome in Taipei, stressing shared democratic values as the foundation for the relationship. The visit occurs amid increasing Chinese engagement with Paraguayan political actors and public calls from Beijing for Paraguay to sever ties with Taiwan.
Key points- Paraguay reaffirmed its diplomatic support for Taiwan during President Pena’s visit to Taipei; sectors affected include diplomacy and international trade.
- China has called on Paraguay to end relations with Taiwan while increasing outreach to Paraguayan political figures; this could influence geopolitical alignment and related market sentiment.
- Pena’s February contact with U.S. officials signals ongoing engagement with multiple international partners, potentially affecting diplomatic-calibrations and policy signaling.
- China’s intensified diplomatic outreach to Paraguayan political actors could lead to shifts in Paraguay’s international posture, creating uncertainty for sectors reliant on stable diplomatic ties such as trade and investment.
- Domestic debate inside Paraguay over economic costs associated with maintaining ties to Taiwan introduces political risk that could affect bilateral programs and cooperative initiatives.