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Diplomacy in Action

U.S. Relations With Paraguay


Bureau of Western Hemisphere Affairs
Fact Sheet
October 22, 2012

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More information about Paraguay is available on the Paraguay Page and from other Department of State publications and other sources listed at the end of this fact sheet.

U.S.-PARAGUAY RELATIONS

The United States established diplomatic relations with Paraguay in 1861, approximately fifty years after Paraguay declared independence from Spain. Post-independence, Paraguay experienced a mix of coups, civil war, and dictatorships, with a more recent transition to civilian leadership and democratic elections. The United States and Paraguay have an extensive relationship and are united by common democratic values and respect for individual rights and liberties. The United States supports consolidation of Paraguay's democracy and continued economic reform, the cornerstones of cooperation among countries in the hemisphere.

Paraguay is a partner in hemispheric initiatives to improve counternarcotics cooperation; combat money laundering, trafficking in persons, and other illicit cross-border activities; and adequately protect intellectual property rights. The United States looks to Paraguay, which has tropical forest and riverine resources, to engage in hemispheric efforts to ensure sustainable development. The United States and Paraguay also cooperate in a variety of international organizations. Paraguay has taken significant steps to combat illegal activity in the tri-border area it shares with Argentina and Brazil. It participates in antiterrorism programs and fora with its neighbors and the United States.

U.S. Assistance to Paraguay

The U.S. Government aids the Government of Paraguay in stemming corruption, creating jobs, reducing rural poverty, and countering international criminal organizations operating in the country. U.S. assistance is aimed at improving the stability and security of Paraguay by strengthening democratic institutions and the rule of law, increasing economic opportunities for vulnerable groups, encouraging a more efficient business environment, and institutionalizing reform.

Bilateral Economic Relations

Paraguay has a predominantly agricultural economy, with a struggling commercial sector. There is a large subsistence sector and a large underground re-export sector, including the import of goods from Asia and the United States for re-export to neighboring countries. U.S. exports to Paraguay include machinery, video games, perfumery and cosmetics, vehicles, and agricultural products. U.S. imports from Paraguay include sugars, wood, animal products, gold, and tobacco.

The United States is one of the largest foreign investors in Paraguay. More than a dozen U.S. multinational firms have subsidiaries in Paraguay. These include firms in the computer, agro-industrial, telecom, banking, and other service industries. Some 75 U.S. businesses have agents or representatives in Paraguay. Paraguay and the United States discuss investment and trade priorities at the annual Joint Council on Trade and Investment, a bilateral mechanism to advance common investment and trade objectives.

Paraguay's Membership in International Organizations

Paraguay and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and World Trade Organization.

Bilateral Representation

The U.S. Ambassador to Paraguay is James H. Thessin; other principal embassy officials are listed in the Department's Key Officers List.

Paraguay maintains an embassy in the United States at 2400 Massachusetts Avenue, NW, Washington, DC 20008 (tel. 202-483-6960).

More information about Paraguay is available from the Department of State and other sources, some of which are listed here:

Department of State Paraguay Page
Department of State Key Officers List
CIA World Factbook Paraguay Page
U.S. Embassy: Paraguay
USAID Paraguay Page
History of U.S. Relations With Paraguay
Human Rights Reports
International Religious Freedom Reports
Trafficking in Persons Reports
Narcotics Control Reports
Investment Climate Statements
Office of the U.S. Trade Representative Countries Page
U.S. Census Bureau Foreign Trade Statistics
Export.gov International Offices Page
Millennium Challenge Corporation
Library of Congress Country Studies
Travel and Business Information



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