COHA in the Public ArenaParaguay

Iran: Tehran looking to strengthen ties with Paraguay

May 26, 2009
ADNKronos International

Asuncion, 26 May (AKI) – Paraguay’s foreign minister Hector Lacognata has told Iran that it is committed to building stronger economic ties with Tehran, according to Iran’s state-run media. The move appears to be part of a strategy by Iran to expand its influence in Latin America.

Paraguay’s foreign minister Hector Lacognata made the remarks in a meeting with Iran’s non-resident ambassador to Paraguay Morteza Tafreshi, Iranian state media, Irna and Fars, said on Tuesday.

Lacognata referred to Iran as “the cradle of civilisation” and underscored the need for participation by Iranian companies in various economic and trade projects in Paraguay.

Last week Tafreshi said Iran was very interested in importing soy and meat from Paraguay. He made the remarks in a meeting with the country’s agriculture minister.

“We are hoping that we can reach an agreement with the government of Paraguay so we can purchase all the food products that we need,” said Tafreshi, quoted by Paraguayan media.

Soy and meat are staple products in Paraguay, and both are among the country’s largest exports.

“In Iran, we have major agricultural research centres, therefore, taking into consideration that Paraguay is also an agricultural country, I believe we can also establish cooperation between agricultural research centres in both countries,” said Tafreshi.

Tafreshi was accompanied by Iranian investors, who are interested in developing farming and real estate projects.

Paraguay, which is one of Latin America’s poorest countries and one of the most corrupt in the world, recently elected leftist leader Fernando Lugo, a former Catholic bishop, to the presidency after 61 years’ rule by the conservative Colorado party.

Iranian president Mahmoud Ahmadinejad (photo) was one of the first to congratulate Lugo on his victory.

Iranian media praised Lugo by calling him “a man of God and an enemy of the Great Satan,” said a report the Council on Hemispheric Affairs, a US-based think-tank.

Iran has recently sought to expand its interests and make new allies in the Latin American region, specifically with Bolivia and Venezuela, both considered ‘hostile’ by the United States.

Paraguay does not produce any oil and relies solely on foreign imports.

The CIA’s World Factbook says the country imports up to 27,410 barrels a day. COHA’s report said Ahmadinejad could use Iran’s oil and investments as a bargaining tool with the Lugo administration.

Paraguay – unlike Bolivia and Venezuela – has a sizeable Muslim population in the so-called tri-border region, where Argentina, Brasil and Paraguay meet.

According to COHA, the Muslim population aided Lugo’s campaign through fund-raising drives that have been supported by Iran and Venezuela.

Economic and political cooperation between Venezuela and Bolivia has grown tremendously in the past three years.

Recently, Iran and Venezuela created a joint 2 billion dollar fund to finance investments in friendly third countries and has financed seven projects in Bolivia, Nicaragua and Cuba.

Venezuelan president Hugo Chavez has expressed explicit support for Iran’s controversial uranium enrichment programme, which the US and other powers fear is aimed at building nuclear weapons.