President Santiago Peña received his German counterpart, Frank-Walter Steinmeier, and his entourage for a visit that opens up opportunities for greater economic integration between Paraguay and Germany, support for the energy transition, and investment possibilities in Paraguay.
The delegation of German authorities and parliamentarians is an opportunity to show the progress made in Paraguay over the last 25 years, said President Peña. “For us it is a great desire that Germany can rediscover Paraguay,” he said during the joint declaration this Monday at the Government Palace.
“I believe that this visit and the contacts that may result from it will allow a European Union player to have more information to argue in favor of this great transformation process in Paraguay,” he added, referring to the future of the energy transition, food production and the ratification of the trade agreement between Mercosur and the European Union.
Energy transition a key part of economic integration
The German president reported on the signing of cooperation projects in the energy sector , highlighting Paraguay’s leadership as a producer and exporter of renewable energy in the region. He also referred to biodiversity conservation projects in the Paraguayan Chaco supported by the German state bank, KfW, as an example of Paraguay and Germany working together.
In this regard, Peña said that Paraguay “wants to be a protagonist in this transition from fossil fuels to biofuels ” and sees Germany as a world leader – the world’s fourth largest economy and 25% of the European Union’s GDP – in advancing this process.
Regarding environmentally sustainable production, the Paraguayan president confirmed that “Paraguay wants to be a world leader in sustainability.” In addition to its capacity to produce food and a contribution of 0.01% to greenhouse gases, “we are fighting the misuse of the environment,” he said, by fighting fires and sanctions “for those who want to take advantage of these climatic phenomena.”
Paraguay and Germany support the Mercosur – EU Trade Agreement
The leaders of Paraguay and Germany agreed on the importance of ratifying the trade agreement between the two blocs, which could create a free trade zone for 715 million people. “Germany’s turnover with Mercosur was 24 billion euros, so both sides have an interest in ratifying this agreement,” said Steinmeier.
Peña, for his part, referred to the importance of the visit by the authorities so that they can see first-hand the production in Paraguay. “The delegation of authorities and parliamentarians will be able to see the great potential and that many of the concerns about environmental laws and the rule of law, we have to show that we comply; Paraguay is willing to comply with the highest standards,” he said.
