Paraguayan President Pena Open to China Trade Deals Amid Taiwan Ties

Paraguayan President Santiago Pena expressed openness to trade deals with China through Mercosur, despite Paraguay's diplomatic ties with Taiwan. Paraguay's stance has restricted grain exports to China. Mercosur, including Brazil, Argentina, and Uruguay, is in talks with the EU and China. Pena supports advancing trade agreements.

Paraguayan President Santiago Pena stated on Wednesday that he is fully open to negotiating trade deals with China via the South American trade bloc Mercosur, despite Paraguay's diplomatic ties with Taiwan.

Paraguay's steadfast diplomatic support for Taiwan has blocked local farmers from accessing the Chinese grain market. Paraguay remains the sole South American nation with formal relations with Taiwan, which rejects China's sovereignty claims. Mercosur, also comprising Brazil, Argentina, and Uruguay, is negotiating a long-awaited trade deal with the European Union and has considered a potential trade deal with China.

'Our position with China is one of total openness,' Pena remarked about Paraguay's stance within Mercosur, while pointing out that China does not accept Paraguay's recognition of Taiwan. 'We are in favor of advancing trade agreements,' Pena added in an interview with Reuters. Mercosur representatives engaged in discussions with Chinese counterparts on August 12 in Uruguay's capital.

Regarding a possible agreement with China, Pena said he observes caution from Brazil but emphasized his support. 'I believe Uruguay is the most interested, and we support this effort to engage in dialogue as a bloc,' he stated. China's foreign ministry and its embassy in Uruguay did not immediately respond to requests for comment.

(With inputs from agencies.)