Taiwan’s Foreign Minister Lin Chia-lung (林佳龍) outlined an ambitious strategy to leverage Paraguay as a central hub for accessing South America’s Mercosur trade bloc, following Japan’s recent decision to upgrade its relationship with Paraguay to a strategic partnership. This development aligns with Taiwan's comprehensive diplomatic approach, which encompasses value-based diplomacy, alliance building, and economic cooperation initiatives.

During a recent briefing on Taiwan&39;s flagship "Taiwan-Paraguay Smart Technology Park" project as a cornerstone of the nation's Mercosur strategy. He highlighted that the common market serves nearly 300 million people with external tariffs while promoting internal free trade, presenting significant opportunities for Taiwanese businesses to avoid high export duties by establishing operations within the bloc.

Lin noted that Paraguay offers substantial advantages in water resources, green energy, and carbon credits that remain underutilized. He described the potential as transformative when combined with Taiwan's technological capabilities, stating that numerous Taiwanese high-tech companies are expressing interest in investing in Paraguay rather than seeking access through non-allied countries like Brazil.

The strategy, called “Taiwan+N”, involves maintaining research, innovation, and design capabilities in Taiwan while establishing global manufacturing networks. Lin also suggested trilateral cooperation opportunities with the U.S. in third countries, including the Philippines and Guatemala, to strengthen supply chain partnerships and promote further collaboration in strategic regions.