TAIPEI (TVBS News) — Paraguayan President Santiago Pena on Wednesday (Aug. 21) expressed his openness to a trade agreement with China through the South American trade bloc Mercosur, despite Paraguay's diplomatic ties with Taiwan.
During the interview with Reuters, Pena highlighted the country's stance and acknowledged the obstacle posed by China's refusal to recognize Paraguay's diplomatic relations with Taiwan. He stated, "We are in favor of advancing trade agreements."
Paraguay remains the only South American nation with formal diplomatic relations with Taiwan, a position that has hindered its agricultural exports to China. Mercosur officials met with Chinese counterparts in Montevideo on Aug. 12 to discuss potential trade agreements.
Mercosur, a customs union that includes Brazil, Argentina, and Uruguay, has been negotiating a long-awaited trade deal with the European Union while also exploring possibilities with China. Pena emphasized Paraguay's position within Mercosur, stating, "Our position with China is one of total openness."
Discussing the potential deal with China, Pena observed Brazil's cautious stance but reaffirmed his support. "I think that the most interested is Uruguay and we accompany this effort to have a conversation as a bloc," he explained.
China's Ministry of Foreign Affairs and the Chinese Embassy in Uruguay did not immediately respond to requests for comment.