The Quiet Economics of Protein: Paraguay & Taiwan
Paraguay and Taiwan maintain one of the most politically distinctive and economically focused trade relationships in the world. While small in absolute scale, it is strategic by design, anchored in agriculture, specifically soy & meat production and reinforced by long-standing diplomatic recognition.
Paraguay is the only country in South America that recognizes Taiwan diplomatically, and that choice has shaped trade flows in subtle but durable ways. Instead of competing across dozens of sectors, the relationship has concentrated on areas where Paraguay has genuine comparative advantage and Taiwan has structural demand.
The Agricultural Backbone
For Paraguay, agriculture is not a growth sector, it is the economy. The country is one of the world’s top exporters of soybeans, supplying global demand chains tied to animal feed, biofuels, and food processing, while also emerging as a major beef exporter, with meat exports surpassing USD $1.9 billion in 2025. Industry export data shows that Chile, Taiwan, the United States, Brazil, and Israel ranked among the top destinations for Paraguayan meat exports, underscoring Taiwan’s role not as a symbolic partner, but as a commercially meaningful buyer within Paraguay’s agricultural trade network.
Taiwan’s role is particularly important:
It provides stable, high-quality demand for Paraguayan beef.
Tariff preferences and bilateral economic cooperation agreements reduce friction.
Taiwan diversifies Paraguay’s export exposure beyond Mercosur (Argentina, Bolivia, Brazil, Uruguay) and mainland China.
From Taiwan’s perspective, Paraguay offers:
Reliable protein supply
Political alignment
Reduced dependence on geopolitically sensitive suppliers
Investment Considerations
Paraguay
VanEck Agribusiness ETF (MOO): Broad exposure to global agriculture, fertilizers, seeds, farm equipment, and crop supply chains. Investors benefit indirectly from Paraguay’s strong soybean exports through companies that support global soy production and distribution.
Taiwan
iShares MSCI Taiwan ETF (EWT): Exposure to Taiwan’s broader economy. Despite its technology focus, the fund captures Taiwan’s dependence on imported food and agricultural inputs, which supports long-term economic resilience and sustained growth.
Risk Assessment (SWOT Framework)
Strengths
Long-term diplomatic alignment
Paraguay’s cost-efficient agricultural production
Taiwan’s consistent import demand
Preferential trade terms reduce volatility
Weaknesses
Narrow sector concentration (soy & meat)
Paraguay’s dependence on climate conditions
Limited financial market depth in Paraguay itself
Opportunities
Rising Asian protein consumption
Diversification away from China-centric trade routes
Value-added meat processing and logistics investment
Threats
Climate risk (El Niño / La Niña cycles)
Political pressure from China and other adversaries on Paraguay to switch diplomatic recognition
Commodity price volatility
Biosecurity or animal disease shocks
Closing Thoughts
The Paraguay–Taiwan agricultural trade relationship is not loud, not speculative, and not hype-driven. It is pragmatic. Paraguay exports what it produces best. Taiwan secures what it needs most. For investors, this relationship is best approached indirectly, through global agriculture ETFs and not speculation. The value lies in stability, alignment, and necessity, not explosive growth.In an ever changing world, this partnership between Paraguay and Taiwan is a quieter one that is fully functional, stable, and one that actually works.
This article was inspired by a conversation I had yesterday with a dear friend, Caleb Corr. I also want to acknowledge his daughter, Terra Amara Corr Moura, expected to be born later this year in 2026.
Full Disclosure:
All investments involve risk, including the potential loss of principal. This analysis is for informational purposes only and does not constitute investment advice.