UPDATE 1-Paraguay 'deeply values' Taiwan ties, president says in Taipei

Ties with Taiwan have become increasingly contentious in Paraguay, where some politicians and business leaders argue the country has reaped limited economic benefits and should instead establish relations with China. Speaking from ‌Taipei, Pena said Taiwan would open its market to Paraguayan poultry meat, calling the move “another important step” in expanding export opportunities.

Paraguay "deeply values" its relations ​with Taiwan and will continue to offer support, President ​Santiago Pena said on Friday as he ‌was formally welcomed ​in Taipei by President Lai Ching-te.

Paraguay is one of only 12 countries that maintain formal diplomatic relations with Taiwan and Pena's visit comes as China steps up efforts to draw ‌the South American country away from Taipei. China on Thursday called on him to end relations with Taiwan. Ties with Taiwan have become increasingly contentious in Paraguay, where some politicians and business leaders argue the country has reaped limited economic benefits and should instead establish relations with China.

Speaking from ‌Taipei, Pena said Taiwan would open its market to Paraguayan poultry meat, calling the move “another important step” in expanding export opportunities. “Today ‌President Lai announced that the Taiwanese market is officially being opened to poultry meat,” Pena said in a post on X, adding that seven agreements were signed spanning technology, cybersecurity, finance and trade.

The trip is Pena's second visit as president to the democratically governed island that China claims as its own territory. Landlocked Paraguay ⁠is Taiwan's ​last diplomatic ally in South America, and ⁠the largest by land area. Lai told Pena that Taiwan and Paraguay share the same values of freedom and democracy.

"The Paraguayan government has long spoken up ⁠for Taiwan in the international arena and firmly supports Taiwan's international participation," he said. "I believe that through President Pena's visit this time, the friendship between Taiwan ​and Paraguay will become even deeper and cooperation even closer."

Paraguay, a major producer of beef and soy, exported poultry worth ⁠about $10 million in 2025 and roughly $3 million in the first quarter of this year, official figures show. Pena has a good relationship with the U.S. and in February visited ⁠Washington ​for President Donald Trump's new Board of Peace, where Trump called Pena a "young handsome guy".

China says Taiwan is one of its provinces with no right to the trappings of a state, a position Lai and his government reject. Pena's government has repeatedly said ⁠ties with Taipei are rooted in shared democratic values.

China has been stepping up outreach to Paraguay's political class. A Reuters report in March ⁠outlined how more than a ⁠dozen Paraguayan lawmakers, journalists and opposition figures have visited China since late 2023, amid growing internal debate over whether maintaining relations with Taiwan carries economic costs.