Paraguay’s President Santiago Peña has emerged as a key ally of the United States in Latin America, publicly supporting the revitalization of the Monroe Doctrine under the administration of Donald Trump. Peña expressed his view in an interview with Bloomberg Television following a meeting with U.S. Secretary of State Marco Rubio, stating that he believes a renewed U.S. Influence in the region could be beneficial.
A Shift in Regional Dynamics
Peña clarified that the current relationship between the U.S. And Latin American nations differs significantly from the 19th century, when the original Monroe Doctrine was established. He emphasized that the alliance between the two regions is now stronger, stating, “We are completely different, and the alliance that we have built is different now, it’s stronger and we spot each other as allies.” He believes the updated doctrine represents an opportunity for regional cooperation, not colonization.
Peña’s support for Trump’s agenda extends beyond rhetoric. He voiced approval of the U.S. Military operation to capture Venezuelan President Nicolás Maduro earlier this year, characterizing the action as exposing political divisions within Latin America. He stated that, following failed Venezuelan elections in 2024, Maduro’s removal was the second-best option for the region.
The Paraguayan leader justified the use of force against authoritarian regimes, stating, “The dictators do not usually go with pamphlets or street demonstrations, they usually go with bullets,” in direct reference to Maduro’s capture. This reflects a pragmatic approach to international politics and crisis resolution.
In addition to supporting the U.S. Stance on Venezuela, Peña’s government has prioritized support for Israel and combating organized crime. Paraguay signed a bilateral security pact last year that allows for the presence of U.S. Troops, pending congressional approval.
Economic and Diplomatic Considerations
Paraguay also maintains diplomatic relations with Taiwan, despite growing Chinese influence in Latin America. Peña affirmed that Paraguay is the only South American nation with official ties to Taipei, stating, “We are the only country in South America that still maintains a relationship with Taiwan. This is not a minor issue considering the influence of China in the Western Hemisphere.”
This commitment to Taiwan has resulted in Paraguay being largely excluded from the growing trade and investment from China experienced by other regional nations. In the past year, Paraguay recorded a trade deficit of over $6 billion with China. Despite this, the Paraguayan economy has shown positive growth, expanding by 6% in 2025, with a projected 4.2% growth for the current year.
Peña’s administration has achieved improvements in international financing and credit ratings, obtaining investment-grade ratings from S&P and Moody’s. Paraguay is preparing to issue global bonds in U.S. Dollars and local currency to support growth and cover fiscal needs for 2026, with a planned issuance of less than $1 billion.
Frequently Asked Questions
What is the Monroe Doctrine?
The Monroe Doctrine is a U.S. Foreign policy established in the 19th century that opposed European colonialism in the Americas. President Peña believes a revitalized version of this doctrine could benefit Latin America.
What was Paraguay’s experience with transitioning to democracy?
Paraguay took approximately three to four years to fully restore democracy after the fall of the Alfredo Stroessner dictatorship in 1989, according to President Peña.
What is Paraguay’s position on Taiwan?
Paraguay is currently the only South American country that maintains official diplomatic relations with Taiwan, a position President Peña has stated will not change during his term.
As Paraguay navigates its strategic alliances and economic development, will its commitment to a close relationship with the United States continue to shape its future in a rapidly changing geopolitical landscape?
