Paraguay open to China trade deals via Mercosur trade bloc despite Taiwan ties, Pena says

Paraguayan President Santiago Pena said on Wednesday that he was “fully open” to trade deals with China via South American trade bloc Mercosur, despite his country’s diplomatic ties with Taiwan.

Paraguay’s long-standing diplomatic support for Taiwan has hindered local farmers’ grains exports to China, which claims sovereignty over the self-governed island.

Paraguay is the last South American country with formal relations with Taiwan, which strongly objects to China’s sovereignty claims.

Mercosur, a customs union also including Brazil, Argentina and Uruguay, has been in talks to finalise a long-awaited trade deal with the European Union, but has also discussed a potential trade deal with China.

“Our position with China is one of total openness,” Pena said of Paraguay’s position within Mercosur, adding that the obstacle was rather China not accepting its recognition of Taiwan.