Weekly briefing - May 25, 2026 - Jun 1, 2026

Paraguay: internal elections, presidential assets, and EU meat quota

Internal elections dominate the week; Peña under pressure and agribusiness advances in Europe.

The week in Paraguay revolved around the June 7 internal elections, with 4.3 million eligible voters and ballots under scrutiny. Politically, President Peña faced mounting pressure over his assets. Economically, World Cup qualification and the opening of the EU meat quota shaped the agenda.

Politics: internal elections under scrutiny and Peña's assets in question

The June 7 municipal internal elections mobilize 4.3 million voters, but the reliability of electronic ballots is heavily questioned. Meanwhile, President Peña responded with provocations to journalists who questioned his 1,603% asset growth between 2017 and 2023, suggesting without evidence that reporters were receiving money from organized crime.

Paraguay holds municipal primaries on June 7 with 4.3 million votersABC Color
President Peña lashes out at journalists and suggests without evidence that reporter may receive money from organized crimeABC Color, 1000 Noticias, Ultima Hora

Economy: World Cup boosts consumption and Taiwan mission attracts investments

Albirroja's qualification for the 2026 World Cup is driving tourism and consumption, with 2,000 Paraguayans on unprecedented charter flights. The business mission to Taiwan resulted in the creation of the Taiwan–Paraguay Chamber of Commerce, aiming to attract investments and consolidate the country as a production base within Mercosur.

Agribusiness: EU meat quota and warning on European soy regulation

Paraguay begins meat exports to the EU in June under a progressive quota of 99,000 tons, while the Hilton Quota gains zero tariff. However, the productive sector warned the foreign minister about the EU's ILUC regulation, which classifies soybean oil as a non-sustainable biofuel and threatens national exports.

Paraguay to begin beef exports to EU in June with 99,000-ton quotaLa Nacion
Production sector warns foreign minister of EU threat to Paraguayan soyLa Nacion, Ultima Hora

Infrastructure: commuter rail advances and urban violence marks the week

Minister Claudia Centurión called for swift approval of the Asunción–Luque commuter rail, with a USD 450 million investment financed by the United Arab Emirates. On security, a shooting chase during a marathon on the Costanera ended with the capture of the fugitive known as 'La Vaca' and the death of a 25-year-old woman.

Minister calls for swift approval of commuter train between Asunción and LuqueLa Nacion
A marathon chase in Asunción ends with the capture of "La Vaca" and the death of a womanABC Color, 1000 Noticias, Hoy

Security: Brazil and Paraguay sign border agreement and electronic bracelets advance

Paraguay and Brazil signed the 'Asunción Commitment 2026' against corruption and organized crime, including a joint command in Puerto Murtinho–Carmelo Peralta. Minister Riera stated that the country is one of the safest in the region and advocated for the expansion of electronic bracelets, currently used by only 200 of the 7,900 individuals under house arrest.

Society: no agreement on minimum wage and Foz do Iguaçu reduces dengue by 90%

The fourth session of Conasam ended without agreement: workers demand a 20% increase and employers link the adjustment to the BCP's CPI. In Foz do Iguaçu, dengue cases fell more than 90% in 2025 with the Wolbachia method, recording zero deaths after one year.

Workers demand 20% raise while employers await Central Bank of Paraguay data; minimum wage negotiations stalledABC Color, Ultima Hora, La Nacion, Hoy
Dengue cases plummet over 90% in Foz de Yguazú with Wolbachia methodUltima Hora

We will continue monitoring the developments of the internal elections, the asset investigation into Peña, and the implementation of the EU meat quota.