U.S. Relations With Paraguay
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.
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 supports the consolidation of Paraguay's democracy and continued economic reform—the cornerstones of cooperation among countries in the hemisphere.
The United States-Paraguay partnership is founded upon a long history of cooperation, strong common interests, an important bilateral trade relationship, and mutual respect between our governments and people. Paraguay is a partner in hemispheric initiatives to improve counter-narcotics cooperation; protect intellectual property rights; and to combat money laundering, trafficking in persons, and other illicit cross-border activities. Paraguay has taken steps to combat illegal activity in the tri-border area it shares with Argentina and Brazil. It also participates in antiterrorism programs and fora with its neighbors and the United States.
The United States looks to Paraguay, which has tropical forest and riverine resources, to engage in hemispheric efforts to ensure sustainable development.
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. A particular emphasis is placed on supporting vulnerable groups such as women, girls, indigenous peoples, and youth. 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, encouraging a more efficient business environment, and institutionalizing democratic reforms.
Bilateral Economic Relations
Paraguay has a small but rapidly growing open economy with a strong macroeconomic position and the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. 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.-Paraguay goods trade was $2.7 billion in 2017. U.S. exports to Paraguay include machinery, agricultural equipment, mineral fuels, toys, and sporting goods. U.S. imports from Paraguay include sugar, food oils, animal products, and wood products.
The United States is one of the largest foreign investors in Paraguay. More than a dozen U.S. multinational firms have subsidiaries in Paraguay, including firms in the computer, agro-industrial, telecom, banking, and other service industries. More than 80 U.S. businesses have agents or representatives in Paraguay. Paraguay and the United States discuss investment and trade priorities under a new Trade and Investment Framework Agreement, 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 the World Trade Organization. Both countries also share a partnership through 100,000 Strong in the Americas, which seeks to increase the number of U.S. students studying across the Western Hemisphere to 100,000. Our delegations cooperate on human rights in international fora such as the Inter-American Commission on Human Rights and the UN Human Rights Council.
Principal U.S. embassy officials are listed in the Department's Key Officer’s List.
Paraguay maintains an embassy in the United States at 2209 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
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: Paraguay
Library of Congress Country Studies