Taiwan’s diplomatic ally Paraguay has called on Taiwan to invest US$1 billion in the country. The investment would relieve pressure on Paraguay to cut ties with Taiwan and establish trade relations with China. That came from Paraguayan president Mario Abdo Benitez in an interview with British newspaper the Financial Times published on Thursday.
Paraguay is one of 14 countries that still maintains official diplomatic relations with Taiwan. Beef and soybeans are two of the country’s most important exports. But because Paraguay has official relations with Taiwan, it is unable to export these products to China, one of the largest markets in the world.
Abdo says agricultural producers are constantly pressuring him to cut ties with Taiwan to open access to the Chinese market. He says Taiwan already invests US$6 billion in countries that don’t officially recognize it. Abdo says Taiwan should divert US$1 billion of those funds to Paraguay to strengthen its relationship with the country.
In response to Abdo’s comments, Taiwan’s Foreign Ministry said his request would affect the strategic relationship between the two countries.
Beijing has a history of forcing countries to choose between having relations with China or Taiwan. Taiwan has lost four allies in Latin America over the last four years as countries are attracted by Chinese investment and export opportunities.