Important Issues in Relations Between Paraguay and the United States

By Ambassador Timothy L. Towell

The United States and Paraguay possess a long history of mutual support and cooperation
across a number of spheres, including government, industry, and crime prevention. Over
the past decade, the United States Department of Justice, the Department of Treasury, the
Department of State, and the Drug Enforcement Administration have worked closely with
Paraguay to limit drug trafficking, fight terrorism, establish intellectual property rights,
and end human trafficking. The United States has collaborated with several South
American countries to develop best practices and training procedures for dealing with
these international threats. In Paraguay, a United States Resident Justice Advisor also
fights against money laundering and forms of organized crime in the region.

Since the early 1940s, the United States has demonstrated a commitment to assisting
Paraguay’s development. In 2006, Paraguay agreed to participate in the Millennium
Challenge Corporation’s Threshold Country Program, an initiative to end informality and
impunity, with the support of the United States. The same year, both countries also
ratified a Tropical Forest Conservation Act. In return for American relief aid, Paraguay
agreed to implement rainforest conservation and restoration efforts. The United States
Agency for International Development also operates several programs to advance
Paraguayan democracy and government. In the 1990s, the United States defended the
country’s democratic institutions and later guided peaceful governmental exchange.

In recent years, economic trade between the two countries has increased as Paraguay
began to climb out of a serious recession. Many larger American multinational
corporations have subsidiaries in Paraguay, representing several different industries. On
average, more than 3,000 U.S. citizens reside in Paraguay at any given time, whether for
work or study. The Office of Public Diplomacy provides scholarships for Americans
wishing to perform research in Paraguay, as well as several different programs to bring
Paraguayan scholars to the United States. The Office has also launched a project to
restore the National Library in Paraguay.
Map of Paraguay from the CIA Factbook 2002

Attribution: PD-USGov-CIA-WF
11 December 2004 Posted by Ahoerstemeier