Current Relations and Recent Events Between Paraguay and Argentina
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Current Relations and Recent Events Between Paraguay and Argentina
Current Relations
The bilateral relationship between Paraguay and Argentina is multifaceted, encompassing trade, energy, security, and defense. Both countries are members of Mercosur, a South American trading bloc, which has influenced their economic and political ties significantly. The relationship is also characterized by deep cultural ties, with Argentina hosting the largest community of Paraguayans in the world, nearly two million people.
Recent Events
Football Match: Recently, Paraguay and Argentina faced off in a CONMEBOL World Cup qualifying match. The match ended with a 2-1 victory for Paraguay, marking a notable upset as Argentina, the current World Cup champions, were defeated. This result has implications for the standings, with Argentina remaining at the top with 22 points from 11 matches, while Paraguay moved up to sixth place with 16 points.
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Trade and Economic Cooperation: Economically, both countries have a significant trade relationship. In 2022, Paraguay exported $1.91 billion worth of goods to Argentina, primarily soybeans. Additionally, the EU has been an important investor in Paraguay, with foreign direct investment stocks valued at €900 million in 2019.
Diplomatic and Energy Issues: A recent diplomatic and energy-related issue has emerged, involving a toll controversy over a shared waterway. This dispute has strained relations within Mercosur and has led to economic repercussions for both countries. Paraguay, one of Argentina's main electricity providers, has cut energy exports, forcing Argentina to seek alternatives at higher costs. This issue highlights the importance of harmonious governance and cooperation over shared resources.
Security and Defense: Both countries continue to collaborate on security and defense matters. For instance, Argentina has a military presence in Paraguay, including a military geographic mission and officers instructing at the police school. This cooperation is part of broader efforts to combat transnational crime and terrorism in the region.
International Cooperation: Paraguay and Argentina also engage in international cooperation through various forums. For example, Paraguay is part of the EU-Mercosur Association Agreement, which aims to remove tariff and non-tariff barriers to trade, fostering regional integration and new trade opportunities.
In summary, while Paraguay and Argentina share a strong bilateral relationship across various sectors, recent events, including a surprising football victory and a contentious energy dispute, have added complexity to their interactions.
