President Santiago Peña enacted Law No. 7688, which approves the Agreement between Paraguay and Japan for the Promotion and Protection of Investments. The treaty was signed in Asunción on December 5, 2025 and sanctioned by the National Congress on July 6, 2025.
The agreement establishes a framework of legal security, predictability, and non-discrimination for investors from both countries, with the goal of expanding the flow of reciprocal investments. The text also defines clear rules on investment protection, free transfer of capital, transparency, and dispute resolution mechanisms.
Foreign Minister Rubén Ramírez Lezcano highlighted at the time of signing that this is a far-reaching political decision, based on mutual trust and respect for international law. Meanwhile, Japan's Ambassador Katsumi Itagaki emphasized that the understanding will strengthen Paraguay's attractiveness as an investment destination, guaranteeing international principles such as fair treatment and protection against expropriations.
The agreement also aims to deepen bilateral economic cooperation, foster long-term business initiatives, and promote technology transfer, benefiting the development of both nations.