During his inauguration ceremony, President Santiago Peña emphasized the unique relationship between Paraguay and Taiwan, referring to them as "not just allies, but also brothers," AP reports.

The swearing-in took place at the government palace in Asunción, attended by regional leaders and Taiwan's Vice President, William Lai.

Paraguay stands out as the sole South American nation, among a diminishing group of 12 governments globally, to uphold diplomatic ties with Taiwan.

This alignment became even more significant following the loss of another regional ally, Honduras, which severed diplomatic relations with Taiwan earlier this year.

President Peña outlined his vision of forging alliances and cooperative agreements with a geostrategic approach, characterized by horizontal partnerships.

He underscored the exemplary status of Paraguay's relationship with Taiwan, describing it as a demonstration of Paraguay's amicable and cooperative spirit toward nations with which it shares profound affinity.

Vice President Lai's presence at the inauguration further reinforced Paraguay's unwavering commitment to its association with Taiwan.

Despite Taiwan's self-governance, China has consistently refuted its sovereignty, claiming the island as its own territory.

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Safeguarding Paraguay-Taiwan Ties Amidst International Dynamics

President Santiago Peña's ascendancy maintains continuity in Paraguay's foreign policy.

Despite China's pressures, Paraguay remains the only South American country to uphold formal diplomatic relations with Taiwan, per Al Jazeera.

During the election campaign, some of Peña's rivals entertained the idea of severing ties with Taiwan in favor of establishing economic connections with China.

In contrast, Peña staunchly embraced his pro-Taiwan stance, pledging to fortify existing relations.

Taiwan's Vice President Lai's attendance at the inauguration symbolized Paraguay's resolute commitment to Taiwan, even in the face of potential diplomatic pressures.

Taiwan's diplomatic recognition poses challenges due to China's stance on the "one China" principle.

China's economic prowess and its policy of avoiding countries that acknowledge Taiwan as a separate entity leave Taiwan with a limited number of diplomatic allies, primarily smaller nations in Central America, the Caribbean, and the Pacific.

Paraguay New President, Santiago Peña

Santiago Peña, described by acquaintances as having "good ideas" and a contemporary mindset, has assumed the presidency, Reuters reports.

Despite his relative lack of political experience, Peña's steady demeanor and mature approach have earned him respect.

Pena's educational journey included studying economics in Asuncion and later pursuing public policy at Columbia University in the United States.

He gained experience working at Paraguay's central bank and the IMF in Washington before returning to Asuncion to join the central bank board. In 2015, he assumed the position of finance minister.

Peña's political journey accelerated when he was chosen by then-President Cartes as his intended successor in 2016.

Although doubts initially emerged within the Colorado party, Peña eventually secured the nomination and emerged victorious in the subsequent election.

"Santi," as he is commonly known, champions business-friendly policies focused on job creation, lower taxes, and attracting foreign investment.

Despite pressures, he has upheld Paraguay's longstanding diplomatic ties with Taiwan, showcasing his commitment to steady, evolutionary change rather than revolutionary upheaval.

"He is not a politician who wants a revolution, he wants evolution," said a businessman who requested anonymity.

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Written by: Bert Hoover

WATCH: Sworn-in Paraguay president Santiago Pena greets Taiwan VP in Asuncion - From AFP News Agency