MercoPress. South Atlantic News Agency

Sánchez and Peña sign bilateral agreements in Asunción

Sánchez's trip to Asunción was the last stop on his tour of the Southern Cone, which also included Chile and Uruguay

The new understanding will facilitate legal, safe, and orderly employment opportunities for Paraguayans in Spain, including employment guarantees and training for workers. Additionally, a cultural cooperation agreement was signed to promote artistic exchange and strengthen the shared heritage between the two nations.

The new understanding will facilitate legal, safe, and orderly employment opportunities for Paraguayans in Spain, including employment guarantees and worker training. In addition, a cultural cooperation agreement to promote artistic exchange and strengthen shared heritage between the two nations was signed.

The two countries also eliminated a double taxation scheme for businesses and citizens pursuant to a previous understanding dating back to 2023, which is now fully in force to boost investment.

Spain is currently Paraguay's fifth-largest foreign investor, with approximately US$700 million invested in sectors such as energy, infrastructure, and public-private partnerships. Sánchez expressed gratitude for the significant contribution of 160,000 Paraguayans to Spain's economic development, highlighting Paraguay as a reliable partner with great potential. He also encouraged Spanish businesses to increase their investments and for Paraguayan companies to see Spain as a gateway to Europe.

President Peña invited Spanish investors to “rediscover” Paraguay, emphasizing the country's stability, economic potential, and commitment to sustainable development. He highlighted Paraguay's recent achievement of investment grade status, stable currency, controlled inflation, and ambitious social programs like “Zero Hunger.”

He also underscored Paraguay's competitive advantages, including its strategic location, natural resources, low taxes, young workforce, and Mercosur alliances. Both leaders reiterated their strong support for finalizing the free trade agreement between Mercosur and the European Union, viewing it as a crucial political and economic message. “This agreement is not only economic; it is a political message of integration, understanding, and shared objectives,” Sánchez stressed.

The Spanish leader also participated in a bilateral forum with Paraguayan and visiting business leaders to explore new opportunities for economic cooperation. His trip to Asunción was the last stop on his tour of the Southern Cone, which also included Chile and Uruguay. “We are very grateful for Paraguay's contribution to Spain's well-being,” Sánchez said at the business forum. He added that Peña's tour of Spain in 2023 was a “catalyst” that spurred interest among new Spanish companies to invest in Paraguay.

“Paraguay and Spain are at an excellent point in their bilateral relationship, but there is still much to be done. This forum is just the beginning of new paths to travel together,” said Sánchez.

“Today, Paraguay is a country that is moving steadily toward the future. But we are still far from reaching our full potential. That is why I invite you to rediscover this land that, almost 500 years ago, was also your home,” Peña pointed out.