U.S. Interests in Paraguay
The United States and Paraguay have an extensive relationship at the government, business, and personal level. Paraguay is a partner in hemispheric initiatives to improve counternarcotics cooperation, combat money laundering and other illicit cross-border activities, and adequately protect intellectual property rights. The United States looks to Paraguay, which has substantial rainforest and riverine resources, to engage in hemispheric efforts to ensure sustainable development. As a member of MERCOSUR, Paraguay supports the move toward a Free Trade Area of the Americas. The United States and Paraguay also cooperate in a variety of international organizations.

Paraguay has taken significant steps to combat terrorism-financing activity in the tri-border area it shares with Argentina and Brazil. It participates in antiterrorism programs and fora with its neighbors and the United States.

The United States strongly supports consolidation of Paraguay's democracy and continued economic reform, the cornerstones of cooperation among countries in the hemisphere. The United States has played important roles in defending Paraguay's democratic institutions, in helping resolve the April 1996 crisis, and in ensuring that the March 1999 change of government took place without further bloodshed.

Bilateral trade with the United States has steadily declined over the years, as the Paraguayan economy remained mired in a long-term recession. Although U.S. imports from Paraguay are only about $32 million per year, U.S. exports to Paraguay approached $396 million in 2001, according to U.S. Customs data. (Not all U.S. exports are reflected in Paraguayan government data.) More than a dozen U.S. multinational firms have subsidiaries in Paraguay. These include firms in the computer, agroindustrial, telecom, and banking and other service industries. Some 75 U.S. businesses have agents or representatives in Paraguay, and more than 3,000 U.S. citizens reside there. In November 1998, U.S. and Paraguayan officials signed a memorandum of understanding on steps to improve protection of intellectual property rights in Paraguay, and in 2001 Paraguay improved enforcement efforts against contraband and piracy activities.

U.S. Assistance
The U.S. Government has assisted Paraguayan development since 1942. The U.S. Agency for International Development (USAID) currently supports a variety of programs to strengthen Paraguay's democratic institutions in the areas of civil society, local government and decentralization, and national reform of the state. Other important areas of intervention are the environment and public health. Current plans call for the development of new activities supporting economic growth. The total amount of the program is $11 million in fiscal year 2002.

The U.S. Department of State and the Drug Enforcement Administration provide technical assistance, equipment, and training to strengthen counternarcotics enforcement and to assist in the development and implementation of money laundering legislation. The U.S. Department of Defense provides technical assistance and training to help modernize, professionalize, and democratize the military. The Peace Corps has about 180 volunteers working throughout Paraguay on projects ranging from agriculture and natural resources to education, rural health, and urban youth development. The Office of Public Diplomacy also is active in Paraguay, providing information on the United States to the press and public, as well as helping to arrange educational and citizen exchanges to promote democracy.

The U.S. Embassy in Paraguay is located at 1776 Avenida Mariscal Lopez, Asuncion (tel. (595) (21) 213-715, fax (595) (21) 213-728). The embassy's home page address on the World Wide Web is: http://paraguay.usembassy.gov/