Paraguayan Opposition Presidential Candidate Declares: Will Sever Ties with Taiwan Authorities Upon Election

Editors‘ Note:
This article was compiled and written by OpenAI’s ChatGPT Plus and reviewed by the human editors of Eat News.

Paraguay’s main opposition presidential candidate, Efraín Alegre, plans to prioritize “austerity” to reduce public sector spending instead of increasing taxes on the country’s farmers if he wins the upcoming April 30 election, as conveyed in a Reuters interview.

Alegre, leading the center-left Concertación Nacional coalition, is in a tight race in opinion polls with ruling party candidate Santiago Peña, who aims to prolong the conservative Colorado Party’s political dominance.

Both candidates face the challenge of reducing a fiscal deficit that reached 3% of the gross domestic product last year, either through cutting spending or raising taxes on farming, the primary driver of the landlocked country’s economy.

Paraguay ranks as the global No. 6 soybean producer, with most of its yield being exported, and it is a crucial beef supplier. Although soy exports currently face no levies, which enhances competitiveness, the country’s diplomatic ties with the Republic of China on Taiwan have hindered access to Communist China.

Alegre stated at his residence outside Asuncion, “We have to put the public budget in order, we have to carry out austerity in the public sector, we cannot simply say if there is a lack of money, we are going to raise taxes.”

In 2022, Paraguay’s broader tax burden was 10.4%, one of the lowest in the region. However, attempts to increase taxes, including on farming, have consistently encountered political and industry resistance.

Peña, the ruling party candidate, has publicly expressed his intention to combat tax evasion and promote employment in the formal economy. He has also been cautious about raising taxes.

Alegre noted that, “It is very difficult for the private sector to feel comfortable paying more taxes if the public sector does not make an effort to properly use the available resources,” referring to frequent allegations of bribery and embezzlement.

Alegre has criticized Paraguay’s ongoing diplomatic relations with the Republic of China on Taiwan, which date back over 60 years, as they have made it difficult to sell soy and beef to Communist China, a significant global purchaser. Alegre believes that Paraguay does not derive adequate benefits from its ties with Taiwan.

He remarked, “We are going to solve this based on national interests and, of course, also based on our alliances in international politics. The current relationship is insufficient; we have a critical position regarding what we have today.”

According to the latest poll released by AtlasIntelligence on April 5, Alegre’s current support rate stands at 38.1%, marginally ahead of Santiago Peña, the right-wing ruling party’s presidential candidate, at 36.4%. Peña has previously stated that he will maintain diplomatic relations with the Republic of China on Taiwan if he assumes office.