FOREIGN
RELATIONS
Paraguay is a member of the United Nations and several of its specialized agencies. It also belongs to the Organization of American States, the Latin American Integration Association (ALADI), the Rio Group, INTERPOL, and MERCOSUR (the Southern Cone Common Market). Paraguay is closely aligned with its MERCOSUR partners on many political, economic, and social issues. It is the only country in South American that recognizes Taiwan and not the People’s Republic of China.
U.S.-PARAGUAY
RELATIONS
U.S. Interests
in Paraguay
The United States and Paraguay have an extensive relationship
at the government, business, and personal level. Paraguay is a
partner in hemispheric initiatives to improve counternarcotics
cooperation, combat money laundering, trafficking in persons,
and other illicit cross-border activities, and adequately protect
intellectual property rights. The United States looks to Paraguay,
which has substantial rainforest and riverine resources, to engage
in hemispheric efforts to ensure sustainable development. As a
member of MERCOSUR, Paraguay supports the move toward a Free Trade
Area of the Americas. The United States and Paraguay also cooperate
in a variety of international organizations.
Paraguay
has taken significant steps to combat terrorism-financing activity
in the tri-border area it shares with Argentina and Brazil. It
participates in antiterrorism programs and fora, including the
Three Plus One process, with its neighbors and the United States.
The United
States strongly supports consolidation of Paraguay's democracy
and continued economic reform, the cornerstones of cooperation
among countries in the hemisphere. The United States has played
important roles in defending Paraguay's democratic institutions,
in helping resolve the April 1996 crisis, and in ensuring that
the March 1999 change of government took place without further
bloodshed.
Bilateral trade with the United States has increased over the last 6 years, after a steady decline over several years due to a long-term recession of the Paraguayan economy. Although U.S. imports from Paraguay were only $68 million in 2007, up from $58 million in 2006, U.S. exports to Paraguay in 2007 were $1.2 billion, up from $910 million in 2006, according to U.S. Customs data. (Not all exports and imports are reflected in Paraguayan government data.) More than a dozen U.S. multinational firms have subsidiaries in Paraguay. These include firms in the computer, agro-industrial, telecom, banking, and other service industries. Some 75 U.S. businesses have agents or representatives in Paraguay, and more than 3,000 U.S. citizens reside in the country.
DEFENSE
The constitution designates the president as commander in chief of the armed forces. Military service is compulsory, and all 18-year-old males--and 17 year olds in the year of their 18th birthday--are eligible to serve for one year on active duty. However, the 1992 constitution allows for conscientious objection. Of the three services, the army has the majority of personnel, resources, and influence. With about 7,000 personnel, it is organized into three corps, with six infantry divisions and three cavalry divisions. The military has two primary functions: national defense (including internal order) and engaging in civic action programs as directed by the president. The navy consists of approximately 2,000 personnel and in addition to its fleet, has an aviation section, a prefecture (river police), and a contingent of marines (naval infantry). The air force, the smallest of the services, has approximately 1,200 personnel.
U.S.
Assistance
The U.S. Government has assisted Paraguayan development since 1942. In 2006, Paraguay signed a $34.9 million Millennium Challenge Corporation’s (MCC) Threshold Country Program (TCP) with the U.S. focused on supporting Paraguay’s effort to combat impunity and informality. Also in 2006, Paraguay signed and ratified an agreement with the U.S. under the Tropical Forest Conservation Act that provides Paraguay with $7.4 million in relief and zeroing out its remaining bilateral debt in exchange for the Paraguayan Government’s commitment to conserve and restore tropical forests in the southeastern region of the country. Separately, the U.S. Agency for International Development (USAID) supports a variety of programs to strengthen Paraguay's democratic institutions in the areas of civil society, local government and decentralization, national reform of the state, rule-of-law, and anti-corruption. Other important areas of intervention are economic growth, the environment and public health. The total amount of the program is approximately $10 million in fiscal year 2006.
The U.S.
Department of State, the Drug Enforcement Administration, the
Department of Justice and the Department of Treasury provide technical
assistance, equipment, and training to strengthen counter narcotics
enforcement, combat trafficking in persons, promote respect for
intellectual property rights, and to assist in the development
and implementation of money laundering legislation and counter
terrorism legislation.
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On December 19, 2003, U.S. and Paraguayan officials signed a new Memorandum of Understanding to strengthen the legal protection and enforcement of intellectual property rights in Paraguay. The MOU was renewed in early 2008.
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Since 2003 the U.S. Government has had a Resident Justice Advisor in Paraguay to support efforts to combat money laundering and terrorist financing and other financial crimes as well as organized crime and corruption.
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In 2006, the State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL) provided Paraguay with $494,000 in assistance to support its efforts to combat narcotics trafficking, money laundering, and violations of intellectual property rights.
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Starting in 2004, a Resident Public Debt Advisor, a Resident Budget Advisor, and a Resident Tax Advisor from the Department of Treasury have been working with Paraguayan counterparts to implement essential reforms.
The U.S. Department of Defense (D0D) provides technical assistance and training to help modernize and professionalize the military, including by promoting respect for human rights and obedience to democratically elected civilian authorities. DOD also provides assistance to impoverished communities through its Humanitarian Assistance Program.
The Peace Corps has about 160 volunteers working throughout Paraguay on projects ranging from agriculture and natural resources to education, rural health, and urban youth development.
The Office of Public Diplomacy also is active in Paraguay, funding Fulbright and other scholarships to the U.S., U.S. scholars to Paraguay, other short- and long-term exchanges, English scholarship programs, donations of books and equipment, and a cultural preservation project to restore Paraguay’s National Library.
Principal U.S. Officials
Ambassador--James Cason
Deputy Chief of Mission--Michael J. Fitzpatrick
Political/Economic Chief--Joan Shaker
Economic Officer--Luis Hernandez
Consul--Sharon Weber
Management Officer--Mona Kuntz
The U.S. Embassy in Paraguay is located at 1776 Avenida Mariscal Lopez, Asuncion (tel. (595) (21) 213-715, fax (595) (21) 213-728). The embassy's home page address on the World Wide Web is: http://paraguay.usembassy.gov/
