Paraguay and Japan have officially elevated their long-standing relationship to a “strategic partnership,” marking a historic milestone after over a century of diplomatic ties. This strategic alliance makes Paraguay the first middle-power nation in Latin America to achieve such a status with the Asian country.
This strategic alliance was announced during President Santiago Peña’s official visit to Japan in May. In Osaka he met with Prime Minister Ishiba Shigeru. President Peña emphasised that this “historic step reaffirms the value of our people, our stability, and the opportunities our country offers to the world.”
Visa-free entry for Paraguayans
Prime Minister Shigeru echoed these sentiments, highlighting their joint desire to take bilateral relations “to new heights”. Shigeru also underscored Japan’s firm dedication to bolstering ties across various areas, including economic development, political collaboration, and international efforts.
Concrete outcomes of this enhanced partnership include a US$240 million loan from Japan to Paraguay. This loan is earmarked for transformative infrastructure projects designed to improve the quality of life for ordinary Paraguayans. Furthermore, the agreement includes visa-free entry for Paraguayans visiting Japan for short stays, alongside the signing of a political consultation agreement aimed at deepening bilateral dialogue.
Strategic alliance at Expo Osaka 2025
The growing partnership was prominently showcased at Expo Osaka 2025. The event featured a spectacular performance by the National Symphony Orchestra and acclaimed harpist Ever Zaracho. Both musical spectacles were highlighting Paraguay’s rich cultural heritage. Beyond cultural exchange, the Expo served as a platform to boost Paraguay’s profile as a reliable partner in trade and investment. A month ago, Paraguay was putting the finishing touch to its pavilion for Osaka 2025.
To learn more about Osaka 2025, check the Universal Exposition’s website.
Significant figures
Bilateral trade has seen significant figures. Paraguayan exports to Japan, including sesame and chia seeds, averaged around US$37.3 million annually between 2021 and 2023. While Japanese imports, primarily vehicles and high-tech goods, exceeded US$150 million annually.
Japanese investment in Paraguay reached nearly US$72 million in 2022. The relationship is further bolstered by a vibrant community of approximately 10,000 Japanese descendants in Paraguay, and official development agencies like JICA and KOICA actively support sustainable growth projects.
