By Ben Blanchard
TAIPEI (Reuters) – Paraguay “would love” to do more trade with China, but Taiwan offers the best bet for moving the largely agricultural economy up the value chain, the country’s president-elect Santiago Pena said on Saturday on a visit to Taipei.
Paraguay is the last South American country with formal relations with Taiwan, which China claims as its own territory. Honduras ended decades of ties in favour of Beijing this year, and only 13 countries now recognise Taiwan.
Pena pledged during his election campaign to maintain more than six decades of relations with Taiwan despite pressure from Paraguay’s agricultural sector, which wants to open up lucrative Chinese markets to soybeans and beef.
Speaking to reporters, Pena said he was “fully committed” to Taiwan and happy with his meetings this week, which have included with President Tsai Ing-wen and Economy Minister Wang Mei-hua.
“We have no constraints on doing trade with China. We would love to do more trade with the PRC,” he said, referring to the People’s Republic of China.
But Paraguay cannot rely on a single market, as a small country does not have the same negotiating clout as Brazil or the United States and does not want to be flooded with Chinese goods while only be able to export raw materials.
“Paraguay is a powerhouse on food production, but still at a very early stage. We provide very low value-added goods. Grains, soy and beef,” he said.
“We need to advance in giving more value added and for that, having a closer collaboration with Taiwan puts us closer on a path to developing an industrial sector than we would have if we had relations with China.”
Pena, who takes office on Aug. 15, said he did not know whether Tsai or Vice President William Lai, who is running to succeed her in Taiwan’s January elections, would come to the ceremony, though added he would be delighted to receive either or both.
“I have no doubt it will be a large delegation, it will be a high-level delegation.”
If Lai, goes he would likely travel via the United States on what would officially be a stopover but would allow him to meet U.S. officials and discuss his policy priorities should he win the election. Lai leads in most opinion polls.
Taiwan’s presidential office said that they were still in the planning stages of who would attend and would make an announcement once details were set.
(Reporting by Ben Blanchard; Editing by William Mallard)
