More information about Paraguay is available on the Paraguay Country 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 50 years after Paraguay declared independence from Spain. During its history as an independent nation, Paraguay has experienced 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, common interests, an important bilateral trade relationship, and mutual respect between our governments and people. Paraguay has been a staunch supporter of the United States’ effort to mitigate the crisis in Venezuela. It is a strong partner in hemispheric initiatives to improve counternarcotics cooperation, to protect intellectual property rights, and to combat money laundering, trafficking in persons, and other illicit cross-border activities.
Paraguay has taken important steps to combat illegal activity in the tri-border area it shares with Argentina and Brazil, including hosting the first meeting of the Regional Security Mechanism in November 2019. It also participates in antiterrorism training and other programs with its neighbors and with the United States. The United States looks to
Paraguay, which has significant 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. Supporting vulnerable groups such as women, girls, indigenous peoples, afro-descendants, and youth receives special emphasis. U.S. assistance aims at improving the prosperity, 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 rapidly growing, open economy with the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. U.S.-Paraguay goods trade was $1.4 billion in 2020. 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. Like governments around the world facing the threat presented by the COVID-19 virus, in 2020 Paraguay took aggressive COVID-19 mitigation measures, including social distancing, quarantine, and other public health measures, which contributed to a 0.9 percent contraction in Gross Domestic Product (GDP) in 2020. The IMF forecasts Paraguay’s GDP will grow by 4 percent in 2021, 2022, and 2023.
The United States is one of the largest foreign direct investors in Paraguay. More than a dozen U.S. multinational firms have subsidiaries in Paraguay, including firms in the computer, agro-industrial, telecommunications, banking, and other service industries. More than 80 U.S. businesses have agents or representatives in Paraguay. In 2017, Paraguay and the United States signed a Trade and Investment Framework Agreement, a bilateral mechanism to discuss common investment and trade objectives.
Paraguay’s Membership in International Organizations
Paraguay and the United States belong to many of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and the World Trade Organization. Our delegations cooperate on human rights in international fora such as the Inter-American Commission on Human Rights and the UN Human Rights Council. Both countries also share a partnership through the Fulbright-BECAL Memorandum of Understanding, a bilateral agreement to increase the number of Fulbright educational exchanges.
Principal U.S. embassy officials are listed in the Department’s Key Officer’s List.
More information about Paraguay is available from the Department of State and other sources, some of which are listed here: