TAIPEI (Taiwan News) — Paraguayan President Santiago Pena said on Wednesday (Aug. 21) that his country was “fully open” to trade deals with China, despite its formal diplomatic relations with Taiwan. 

Paraguay’s diplomatic ties with Taiwan have impeded its local farmers’ grain exports farmers to China, Pena said in a Reuters interview. “We are in favor of advancing trade agreements. Our position with China is one of total openness,” the president said. 

Pena expressed his willingness to engage in economic deals with China via Mercosur, a South American trade bloc that includes Brazil, Argentina, and Uruguay. The customs union is awaiting the finalization of a trade deal with the European Union, but it is also considering solidifying one with China.

Chinese officials met with Mercosur representatives in Uruguay on Aug. 12. Pena said, “I see prudence on Brazil’s side… I think that the most interested is Uruguay and we accompany this effort to have a conversation as a bloc.” 

Paraguay is one of 12 countries, and the only one in South America, to maintain ties with Taiwan, including advocating for its inclusion in international organizations, regardless of condemnation from China. Pena added that the main obstacle is that China does not accept Paraguay's recognition of Taiwan.