MercoPress. South Atlantic News Agency

Paraguay retains Taiwan diplomatic links and opens trade office with Beijing

Hector Lacognata in Taiwan with a delegation of 120 Paraguayan businesspeople

Mercosur member Paraguay is reconsidering the terms of its relation with Taiwan, “retaining diplomatic links” but at the same time establishing “formal economic relations with Beijing”, said the country’s Foreign Affairs minister Héctor Lacognata.

“Diplomatic links with Taiwan are in good health and maintaining them is a political decision from the government” said Lacognata during his current visit to the island of Taiwan. He added that Paraguay sees the relation with Taipei in the framework “of universal values and principles such as human rights, democracy and freedom” with a special emphasis in trade and economic affairs.

“The potential for economic links with Taiwan has not been advanced sufficiently. We are stimulating the presence of Taiwanese investors in Paraguay”, said Lacognata.

The Paraguayan official is currently in a six-day visit to Taiwan with a delegation of 120 businessmen exploring commerce and investment opportunities.

Taiwanese president Ma Ying-jeou during an interview with Lacognata promised that improved relations between Taipei and Beijing will not have a negative effect for Paraguay.

“Our links are closer and closer because with Paraguay we share and defend the values of freedom, democracy and prosperity”, said the Taiwanese president.
“We want Paraguay to become a technological centre for the manufacture of digital television sets in cooperation with companies from Taiwan”.

Paraguay also is after the transfer of Taiwanese technology, “how a farming community became a leading pole of technological, computer and telecommunications”.

Regarding foreign policy Lacognata said Paraguay is interested in promoting South-South relations, consolidating democracy and energy sovereignty.

“We are looking to increase the Paraguayan presence in the world, particularly in the South east of Asia, Middle East and the Caribbean, with special emphasis on South-South collaboration, strengthening links with African countries” pointed out Lacognata.

In 2011 Paraguay will be a hub of diplomatic activity since the country will be holding the pro-tempore Mercosur and Unasur chair plus hosting the Ibero-American summit.

Lacognata made it a point to underline that Paraguay is seeking “to recover energy sovereignty and we believe that regional integration is closely linked to energy integration”.

Paraguay is one of the few countries to enjoy an energy surplus, but that condition is shared with neighbouring Brazil and Argentina that absorb most of the power produced from two huge hydroelectric dams built on common rivers.

Paraguay has been struggling for better terms for the surplus energy which is paid based on agreements dating back several decades.

Taiwan has diplomatic relations with 23 countries, of which twelve are in Latinamerica and the Caribbean. Relations with Paraguay date back to 1957. The rest of Mercosur full members, (Argentina, Brazil and Uruguay) have full diplomatic relations with Beijing and consider Taiwan a province of mainland China.