Paraguayan President Santiago Pena has expressed his full openness to negotiating trade deals with China through the South American trade bloc Mercosur, despite Paraguay's formal diplomatic ties with Taiwan. This diplomatic relationship has already impacted local farmers' grain exports to China, which claims sovereignty over Taiwan. Pena identified China's non-recognition of Taiwan as a significant obstacle to advancing trade agreements but remains committed to exploring economic cooperation within Mercosur, which also includes Brazil, Argentina, and Uruguay. Recent discussions took place between Mercosur officials and Chinese representatives in Uruguay. Pena noted Brazil's cautious approach but indicated strong interest from Uruguay in pursuing a China trade agreement. Paraguay is currently the only South American nation that maintains official relations with Taiwan, advocating for its inclusion in international organizations.