Relations between Paraguay and Taiwan may end due to elections
2023.01.05 14:21
Relations between Paraguay and Taiwan may end due to elections
Budrigannews.com – Efrain Alegre, the opposition’s presidential candidate, told Reuters that if the opposition wins the April election, Paraguay would open diplomatic ties with China and cut diplomatic ties with Taiwan. He said this in an effort to boost the country’s soy and beef exports, which are its main economic engines.
In the meantime, the candidate for the ruling party told Reuters that he would keep in touch with Taiwan, a self-governing island that China views as a province rather than a county and considers one of its provinces. This made the geopolitical issue a major issue in the race for the election.
Paraguay is one of just 14 countries worldwide that holds political binds with Taiwan and the main South American country to do as such. In recent years, China has convinced Nicaragua, one of the island’s allies, to change sides.
Alegre, who is running as a candidate for a broad coalition that wants to beat the conservative Colorado Party, said that Paraguay should get in touch with China to get access to its huge soy and beef markets, which farmers in the country have always wanted.
Alegre stated in a recent interview after being selected as a presidential candidate, “China must have relations with Paraguay.”
He continued, “Our interests in the livestock and grain sectors are currently suffering a significant loss.” We believe we don’t get enough out of our relationship with Taiwan, which is why we hold this critical position.
The Colorado Party candidate, Santiago Pena, stated that if he won the election on April 30, Paraguay’s over six decades of ties with Taiwan would remain intact.
Pena stated to Reuters, “I do not see any change in that sense.” I will uphold Taiwan’s long-standing relationship.
Although opinion polls on the elections have not been released by political parties or independent consultancies, some analysts anticipate a close race between Pena and Alegre. In the one-round election, other small parties are running.
Reuters was informed by the Taiwanese foreign ministry that it was keeping a close eye on the upcoming election in Paraguay and trying to improve relations with candidates from all sides.
In a statement, the ministry stated, “Our embassy is actively strengthening contact and communication with candidates from different political parties to win support for the Taiwan-Paraguay friendship.”
China’s claims to sovereignty, which have grown in recent years as Beijing has increased its diplomatic, military, and economic pressure, are strongly rejected by the democratically governed island.
China asserts that Washington’s pressure and so-called “dollar diplomacy” are the only reasons the island’s allies continue to support Taipei.
In recent years, farmers have put pressure on Paraguay’s Taiwan ties, particularly from the country’s beef producers and farmers, who see the relationship as a barrier to entering the largest market in the world for their products.
“We consider that we receive very little in compensation,” Pedro Galli, president of the Rural Association of Paraguay (ARP), told Reuters. “We make a sacrifice for the political support given to Taiwan.”
In 2021, Paraguay imported $4 billion from China, while exports were only $30 million. That year, Paraguay had a $118 million trade surplus with Taiwan.
Since the December primaries, a series of political meetings have been held by the ARP, the largest cattle farming chamber in the nation, to gauge candidate support for China. Each year, about 300,000 tonnes of beef are produced in Paraguay.
Galli continued, “We will be measuring the temperature.”
Paraguay is one of the world’s top 10 exporters of beef and the fourth largest exporter of soybeans, its primary cash crop. With its derivatives, soybean production totals approximately 10 million tonnes annually and generates more than $2 billion in foreign currency.
According to Hector Cristaldo, president of the Union of Production Guilds, the primary chamber for soybeans, the nation is currently excluded from China, which, according to him, accounts for approximately two-thirds of the global market.
He stated, “In today’s world, it is practically impossible to sell products to that enormous market.”
“What we produce is sufficient for a neighborhood in a Chinese city, but what Beijing cares about is our break with Taiwan. That is the dilemma Paraguay faces, and our authorities must find a solution to it.
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