Paraguay's Balancing Act: Trade with China versus Ties with Taiwan

Paraguayan President Santiago Pena expressed openness to trade with China via Mercosur despite diplomatic ties with Taiwan. Paraguay's support for Taiwan complicates grain exports to China. Mercosur, including Brazil, Argentina, and Uruguay, is considering trade deals with the EU and China, with Uruguay showing particular interest.

Paraguayan President Santiago Pena has declared his willingness to engage in trade deals with China through the South American trade bloc Mercosur, regardless of Paraguay's diplomatic relationships with Taiwan. This diplomatic stance has complicated grain exports to China, which claims sovereignty over Taiwan.

Mercosur, comprising Brazil, Argentina, and Uruguay, is negotiating trade deals both with the European Union and China. According to Pena, China's primary obstacle is Paraguay's recognition of Taiwan.

Pena also stated his favor towards advancing trade agreements, noting China's importance in trade and economic cooperation with Mercosur nations. Nonetheless, Taiwan's foreign ministry mentioned Pena's consistent support for Taiwan and urged caution about China's trade practices. Mercosur and Chinese officials recently held discussions in Uruguay's capital regarding potential trade relations.

(With inputs from agencies.)