Japan and Paraguay are poised to elevate their bilateral relationship to a "strategic partnership" and establish a framework for regular policy consultations. The Yomiuri Shimbun reports that Japanese Prime Minister Shigeki Ishiba and Paraguayan President Santiago Peña are expected to reach this agreement during their upcoming summit.

This elevation of ties aims to strengthen cooperation between the two countries in maintaining and developing a free and open international order, in response to China's growing influence in the Latin American region.

President Peña is scheduled to visit Japan from Monday to Friday to attend Paraguay's National Day events at the Osaka-Kansai Expo.

A "strategic partnership" signifies a close cooperative relationship between countries that share fundamental values such as the rule of law and democracy. According to multiple sources within the Japanese government, the two nations are expected to affirm their commitment to collaborating on resolving global issues as strategic partners during the summit and discuss specific cooperation measures to this end.

Regarding policy consultations, it is anticipated that the two countries will hold director-general level meetings approximately every two years to discuss ways to develop relations in various fields, including economic cooperation. In particular, Japan is highly likely to agree to grant short-term visa exemptions to Paraguayan citizens, which is expected to expand people-to-people exchanges and enhance mutual understanding between the two nations.

Paraguay, the only South American country that maintains diplomatic relations with Taiwan, is known to have a pro-Japanese sentiment with approximately 10,000 Japanese descendants residing in the country. This historical and cultural background is expected to provide a positive foundation for the development of bilateral relations.

Paraguay has consistently upheld fundamental values and has demonstrated its role as a responsible member of the international community by criticizing Russia's invasion of Ukraine. During the upcoming summit, the two governments are expected to reach a broad agreement on an investment agreement that encourages the expansion of Japanese companies' presence in Paraguay. This is projected to contribute to Paraguay's economic development and provide Japanese companies with opportunities to enter new markets.

Through Paraguay, a member of Mercosur (Southern Common Market) along with Brazil and Argentina, Japan aims to encourage Japanese companies to more easily access the Mercosur market, where tariffs are virtually non-existent. This represents a strategy to utilize Paraguay as a gateway to the South American market.

The formalization of the strategic partnership and the discussion of specific cooperation measures during the Japan-Paraguay summit are expected to further solidify bilateral relations. In particular, strengthened cooperation in various fields such as economy, politics, and culture is projected to bring practical benefits to both countries and contribute to international peace and prosperity. President Peña's visit to Japan and participation in the Osaka-Kansai Expo are anticipated to be significant opportunities for advancing the relationship between the two nations.

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