Ishiba, Japan's Prime Minister, and Peña, Paraguay's President, Hold Summit to Enhance Practical Cooperation, Including Investment Agreements

Singapore – On May 21, at 6:50 PM, Japanese Prime Minister Shigeru Ishiba held a summit meeting for approximately 60 minutes with Paraguayan President Santiago Peña Palacios, who was visiting Japan to attend the 2025 Osaka-Kansai Expo. This meeting marked a significant turning point, elevating the bilateral relationship to a 'Strategic Partnership,' with both nations now aiming to further deepen cooperation across various sectors.

Following the meeting, both leaders observed the signing ceremony of the 'Memorandum of Cooperation on Political Consultation Mechanism' and the exchange of Notes concerning visa exemption for short-term stays in Japan for holders of ordinary Paraguayan passports. They then held a joint press conference. During this event, both leaders agreed to upgrade their bilateral relationship to a 'Strategic Partnership' and announced that negotiations for a Japan-Paraguay Investment Agreement had reached an agreement in principle. Afterward, a working dinner followed from 8:20 PM for approximately 80 minutes.

 
Leaders Confirm 'Special Bond' from First Meeting

Prime Minister Ishiba welcomed President Peña on his first visit to Japan and expressed his pleasure that the 2025 Osaka-Kansai Expo would provide an opportunity to showcase Paraguay's attractive culture. He also articulated his desire to further strengthen relations with Paraguay, an important partner that shares values and principles and maintains a special bond through its Japanese immigrant (Nikkei) community. In response, President Peña expressed gratitude for the warm hospitality received during his visit to Japan, congratulated Japan on hosting the Expo, and conveyed his intention to deepen bilateral relations. Paraguay, often called the 'Heart of South America' due to its central location on the continent, holds strategic importance in its relationships with powerful neighboring countries such as Brazil and Argentina. Furthermore, Japan and Paraguay have maintained a long-standing friendly relationship since establishing diplomatic ties in 1919, with Japanese immigrants in Paraguay playing a crucial role as a bridge between the two nations.

 
As 'Strategic Partners,' Cooperating to Maintain a Free and Open International Order

Prime Minister Ishiba emphasized that the international community is at a historic turning point and that cooperation among like-minded nations is more critical than ever. He stated that as newly elevated 'Strategic Partners,' they would further cooperate to maintain and strengthen a free and open international order based on the rule of law. Japan also conveyed its willingness to provide yen loans to support Paraguay's efforts in infrastructure development.

President Peña expressed gratitude for the development cooperation Japan has provided in various fields over the years and conveyed his expectation for further entry of Japanese companies into Paraguay, citing its favorable investment environment, including a competitive workforce and abundant hydropower resources. Paraguay boasts the lowest corporate tax rate in South America and offers broad market access as a MERCOSUR member state, making it an attractive investment destination for Japanese companies.

Furthermore, President Peña expressed support for Japan's promotion of the 'Free and Open Indo-Pacific (FOIP)' initiative. He elaborated on the 'Bioceanic Corridor' project as a venture linked to FOIP, indicating interest in Japanese corporate participation. The Bioceanic Corridor is a major infrastructure project connecting South American countries, including Paraguay, to the Atlantic and Pacific oceans, expected to elevate Paraguay's status as a logistics hub.

Both leaders also confirmed their commitment to promptly launch the Japan-MERCOSUR Strategic Partnership Framework and advance discussions to deepen trade relations under this framework. They welcomed the steady progress in space cooperation under the 'Japan-Paraguay Space Cooperation Program,' which was launched last year, signaling a new horizon for scientific and technological cooperation between the two countries.

 
Discussions on Regional Situations and Enhanced Cooperation on the International Stage

The leaders exchanged views on the international situation, agreeing that rising regional tensions should be resolved peacefully in accordance with the UN Charter and other principles of international law. As strategic partners, they pledged further cooperation on the international stage.

Additionally, they discussed the situation in East Asia, including policies toward North Korea regarding nuclear and missile issues and the abduction issue. Prime Minister Ishiba requested continued understanding and cooperation for the immediate resolution of the abduction issue. President Peña, who wore a blue ribbon badge to the meeting, expressed his support for Japan's position. The issue of North Korea's abduction of Japanese citizens is a long-standing aspiration for Japan, and Paraguay's support is expected to positively impact Japan's diplomatic standing in the international community.

This summit marked a significant occasion for Japan and Paraguay to establish a new relationship as 'Strategic Partners,' going beyond mere friendly ties to promote mutual benefit and contribute to the international community. Both nations are expected to continue their close cooperation, creating synergies in various fields such as economy, security, and culture, thereby building an even brighter future.