Taiwan pressures become an election issue in Paraguay

Significance

The decision reflects growing ambivalence in US policy towards Paraguay in the run-up to the April 30 presidential election, as sanctions against former President Horacio Cartes risk undermining its pro-Taiwan policy. Opposition presidential candidate Efrain Alegre has promised to cut ties with Taiwan and recognise China if elected.

Impacts

• Perceptions of pre-election interference by Washington could mean that its efforts backfire.
• As the only Mercosur member with ties to Taipei, the new Paraguayan government will come under greater regional pressure to switch sides.
• Cartes will suffer financially as major international companies reconsider their ties to his business empire.