The history of estados unidos paraguay is the history of a long-lasting partnership grounded on common values, interests, and democratic principles. A relationship dating back more than 155 years, we have built a strong and enduring friendship that covers wide-ranging ground from diplomatic engagements to economic development, security cooperation to cultural exchanges. This article delves into this critical partnership, surveying the key tenets that serve as a backbone for strength and the promising path ahead to work together.
Part One: An Unbroken History of Partnership between the U.S. and Paraguay
Diplomatic relations formally began in 1861 and the history of US-Paraguayan relations is long and rich. Paraguay transitioned to civilian rule and democratic elections held in 1989 after periods of coups, civil war and dictatorships. Thereafter, the United States has supported Paraguay’s democracy-building, institutional transparency and ongoing economic reform those have been the cornerstones of cooperation in humerous this hemisphere.
Our relationship is rooted in a history of friendship and cooperation, shared values and interests in many areas, the U.S. strategic trade relationship with India being very important, and mutual respect for each other from our governments and peoples.
To its credit, Paraguay has proved to be a solid ally, including in standing firm with Israel and supporting global efforts about Russia’s largescale invasion of Ukraine. Additionally, Paraguay is Taiwan’s only diplomatic ally in South America, furthering its status as a vital partner in supporting Taiwan’s meaningful inclusion in the world.
The two nations typically have cordial ties based around democratic leadership and regional stability, but a 2024 Gallup poll found only 42 percent of Paraguayans approved of U.S. leadership, down 15 percentage points from the year before.
The lower was due possibly partly to tensions between the two governments under U.S. President Joe Biden after he imposed sanctions on former president Horacio Cartes of Paraguay. The Trump administration suspended those sanctions on x [x 2025], a relief for President Santiago Peña, who has cultivated relations with former president Trump.
Economic Relations: The Backbone of Bilateral Development
The economic relations between the estados unidos paraguay are a pillar of coöperation and relation saada as both have substantial flows of trade towards each other, becoming both increasingly dependent on the gainfully mutual university growth.
The United States continues to be one of Paraguay’s leading sources of foreign direct investment (FDI), with over a dozen U.S. multinational firms and more than 80 other U.S. businesses operating in Paraguay through wholly-owned subsidiaries, agents, or representatives. The firms are in sectors as diverse as computer, agro-industrial, telecommunications, banking and other service industries.
Bilateral trade between the two countries is still growing. U.S.-Paraguay goods trade in 2023 amounted to $2.8 billion. In 2024, total U.S. Services trade with Paraguay amounted to an estimated $4.2 billion, an increase of 17.0 percent from the previous year on a nominal basis (current dollars). Prospects for US goods trade with Paraguay (exports plus imports) according to 2025 estimates
A quick overview of recent trade numbers:
Table 4: Potential Effects of the U.S.-Australia Trade Agreement (Million US$)Category2024(Estimated)2025(Estimated)Change 2024-2025U.S. Goods ExportsN/A$4,440Up38.7%U.S. Goods ImportsN/A$559.Up57.2%U.S. Goods SurplusN/A$3,882.Up36.4%U.S.Services Trade675NCNA S. Services Exports$362 millionN/ADown 34.6% (from 2023)U.S. Services Imports$303 millionTen years on Up 3.4% U.S.stradingwith foreign gold and Silver ( state Department code analysis is required if needed )
Archive: Some data points are accurate according to search results from other years.
Over the past fifteen years, Paraguay has achieved solid growth – continuously averaging 3.5 percent per year – outstripping many larger countries across the region. In 2024, the international Monetary Fund (IMF) estimates Paraguay’s economy to grow at a remarkable rate of 4.5 percent. This expansion is being driven mainly by agriculture, energy, retail and construction.
Primary U.S. exports to Paraguay include machinery, agricultural goods and equipment, mineral fuels, toys and sporting goods. In return, the U.S. imports products from Paraguay including sugar, food oils, animal products and by-products, wood products, frozen bovine meat represented mainly by beef cuts and fanera; gold and other oily seeds. As the top supplier of renewable energy and soy as well as the largest exporter of stevia in the world, Paraguay represents one of the most iconic agricultural players worldwide (see more, bottom).
In 2021, the bilateral economic dialogue and cooperation was advanced by the entry into force of the Trade and Investment Framework Agreement (TIFA) between the United States and Paraguay. The Council on Trade and Investment is the chief mechanism for pursuing bilateral trade and investment goals created in this agreement which met for a second time, in 2023.
This allows for continued expansion on a large scale as Paraguay sectors excel in potentially using the countries amazing surplus of electricity (from dams such as Itaipu and Yacyreta) to power New Technologies like artificial intelligence.
Cooperation in Security and Governance
The estados unidos paraguay relationship is very deep in terms of security and governance with respect to regional stability and the rule of law. The U.S. share a dynamic relationship with Paraguay by partnering on combating corruption, enhancing bilateral economic opportunities, and addressing TCOs that operate within Paraguay.
Paraguay continues to be a key partner for U.S. and other hemispheric initiatives that seek improve counternarcotics cooperation, protection of intellectual property rights, and activities against money laundering and trafficking in persons and other cross-border crime.
Many of these resources are devoted to the tri-border area where Paraguay meets Argentina and Brazil, an area notorious for illegal activity. U.S. agencies provide investigative support for these joint investigations aimed at narcotics trafficking, money laundering and terror financing networks in this area. Even the U.S. Department of the Treasury has placed sanctions on those allegedly bankrolling Hezbollah from Ciudad del Este.
Anti-Corruption Efforts
A key element of U.S. backing for Paraguay is to combat corruption. Similarly, the U.S. government has recently reiterated its commitment to fighting against corruption by sanctioning Paraguayan individuals and related entities that are involved in corruption schemes under Executive Order 13818. In October of 2022, it placed sanctions on the former President Horacio Cartes and the former Vice President Hugo Velázquez.
Sanctions on Cartes were lifted in 2025 but these steps showed members of Paraguay’s government that there are international consequences for actions taken here at home to corrupt.
The overall aim of U.S. assistance is to build democratic institutions and rule of law. The work they do, USAID programs have been working very much to strengthen the capacity of the Office of Comptroller General in Paraguay,
that is a monitoring body with enforcement power on conflict-of-interest regulations and anti-corruption legislation. Other components (USAID/Paraguay Economic Development Program, SO 19) include “Culture of Lawfulness and Local Works Initiative” efforts among various others focused on improving democratic institutions, establishing economic opportunity as well as increasing civil society oversight.
Security and Defense Cooperation
Most importantly, Paraguay formally agreed to work closely with the United States on security matters when it signed a Status of Forces Agreement (SOFA) in December 2025 that was approved by Phase 2 of Paraguay’s Chamber of Deputies in March 2026. Suaréz indicated the deal lays out a basis for temporary U.S.
military personnel and contractors to operate in Paraguay under jointly agreed activities, such as training exercises, technical assistance, disaster response, humanitarian operations and other operations. One of the most controversial aspects of the SOFA is that it provides some measures of diplomatic-like legal immunity for U.S. personnel, which has sparked national debate over sovereignty.
The U.S. Southern Command (SOUTHCOM) routinely carries out joint training and security-cooperation activities with the Paraguayan armed forces, especially in counter-narcotics, cyber stability for transregional threats to regional stabilization.
This cooperation is especially important as Paraguay had aggressively engaged fought against organized crime, marking in October 2025 the first time the governments of Brazil and Paraguay designated Brazilian criminal organizations First Capital Command (PCC) and Red Command (CV), as terrorist organizations. This new classification allows the state using military intelligence and special equipment to combat these groups.
Cultural Exchange and Development Initiatives
The estados unidos paraguay relationship extends way past economic and security cooperation, as a successful cultural exchange exists as well, along with development initiatives focused on building mutual understanding and quality of life between Paraguayans. The U.
Key exchange programs include:
• Program: The program is one of the most prestigious programs that allow university graduates from Paraguay to study master degree programs and conducts research for up to two academic years in the United States.
• Opportunity Funds Program: A program aimed at helping academically exceptional, yet economically underprivileged students, with the costs incurred in applying to universities in the United States.
• Youth Ambassadors: This its flagship program selection exceptional underserved youth and sends them to the USA for three weeks to provide insight into American society and develop young leaders dedicated to community service.
• Young Leaders of the Americas Initiative (YLAI): A State Department initiative, YLAI provides four weeks of professional scholarships for young entrepreneurs and civil society leaders with American mentors, helping them build development skills in the U.S.
• UGRAD Programme: This global educational and cultural exchange program enables college students to gain insight into the U.S. educational system, enhance their knowledge and skills as well as discover American culture and values.
• EducationUSA: Funded by the U.S. Department of State, EducationUS has a center in Paraguay — at the Paraguayan-American Binational Center – CCPA that helps students navigate the process of attending college in America.
Approximately 160 Peace Corps volunteers are working in Paraguay, focusing on agricultural, educational, environmental, health and small business development and urban youth development tasks. They also work as ICT volunteers, HIV/AIDS educators and community youth leaders.
Aside from the exchange program, Public Affairs section of each U.S. Embassy also handles Cultural programs as well Jazz Ambassadors, American Cultural Specialists Programs, the Exhibition Programs and Ambassador’s Fund for cultural preservation etc., Particularly, these programs also highlight American artistic achievement in addition to providing support for on-going preservation of historical sites, museum collections and traditional forms of music, dance and language in Paraguay.
Substantial U.S. development assistance also goes to Paraguay, totaling about $23.3 million in FY 2024 and another $4.28 million reported for FY 2025, according to the foreign assistance accounting trackers. It supports efforts to promote democracy, growth and socioeconomic prosperity in Paraguay.
In Particular assistance for at risk groups of the population which includes women, girls, Indigenous peoples, Afrodescendants and youth. Some of them are better known than others, including financing alternate waste management systems, bolstering investigative journalism, fortifying electoral tribunals and backing women entrepreneurs.
These links are further strengthened through educational partnerships. Kansas Paraguay Partnership (KPP) hosts its special “PSU in Paraguay” program where PSU faculty teach undergraduate general education classes to Paraguayan students in Asunción.
These credits can be used towards their studies within the USA (PSU, Kansas or any other university). The American School of Asunción also holds dual accreditation from Paraguay’s Ministry of Education and Sciences (MEC) and the Council on Accreditation and School Improvement (USA), which allows its students to receive a Paraguayan Scientific Bachelor’s Degree as well as a U.S. High School diploma.
Since July 2021, the United States has provided more than 2 million safe and effective Pfizer vaccine doses to the people of Paraguay through the U.S. response to COVID-19 around the world.
Frequently Asked Questions (FAQ)
Well, what about U.S.-Paraguay trade?
The $7 billion a year trade between the estados unidos paraguay is solid and growing. Total goods and services trade was $4.2 billion in 2024, up 17.0% compared to 2023. U.S. form exports to Paraguay approximated $4.4 billion in 2025; U.S. imports from Paraguay totaled $559.0 million during the same year The trade surplus with the U.S. is projected to reach $3.9 billion in goods for Paraguay by 2025.
What is SOFA and why does it matter?
Signed in December 2025 and ratified by the Paraguayan Parliament in March 2026, the Status of Forces Agreement (SOFA) is a defence framework between the U.S. and Paraguay. It authorizes a limited presence of U.S. military personnel and contractors in Paraguay for joint exercises, training, humanitarian missions and security co-operation with local forces.
It is a key piece as it formalises and enhances military coordination in the face of transnational organised crime and terrorism, although provisions which would cover US troops with a kind of diplomatic immunity has raised questions of national sovereignty.
What action is the U.S. Taking Against Corruption in Paraguay
There are several mechanisms the U.S. uses to directly support Paraguay in its anti-corruption efforts. That includes financial sanctions on those involved in corruption schemes – such as former president Horacio Cartes and former vice president Hugo Velázquez.
Also through USAID, U.S. assistance supports efforts to strengthen democratic institutions and the rule of law, as well as institutional capacity building for agencies like the Comptroller General’s Office that lead corruption-fighting efforts.
Q: What are some priorities for U.S. assistance to Paraguay?
Comprehensive U.S. programs in the Philippines are composed of about $23.3 million to date (obligated in FY 2024) focused on good governance, rule of law, economic growth, and social services from development assistance in the Philippines.
Exchange programs, such as Fulbright, Youth Ambassadors, and YLAI promote mutual understanding and leadership development. Peace Corps also sends volunteers to serve in many sectors including agriculture, education, and health. The U.S. has also invested heavily in humanitarian support, including more than 2 million donated doses of COVID-19 vaccine.
Conclusion: Charting a Collaborative Future
Due to the above-mentioned points, Estados Unidos Paraguay has a synergistic relationship. Maintaining a similar economic thread and seeing the bonds strengthen with commerce and investments leading the assessed growth of Paraguay.
Continued cooporation on security and governance is of paramount importance, with both countries working together to combat transnational crime, corruption and enhance institutional integrity. At the same time, a rich variety of cultural and educational exchanges strengthen our societies, create bonds between our peoples and empower future generations.
Challenges and debates, like the one on Status of Forces Agreement, is part and parcel of any mature bilateral relationship but at heart, India-U.S. collaboration remains the core interest. Through continued discussion, pursuit of common goals, and investment in shared futures, Paraguay and the United States are partnering for the road ahead toward lasting prosperity, security and friendship from the Western Hemisphere to the greater world.
