H.E. Mr. Genaro Vicente Pappalardo

ANA: Thank you for giving us the opportunity to talk to you. Not many in India know about your country. Paraguay became independent of Spanish rule in 1811. Since then, it has had a rather tumultuous history with war of the triple alliance (1865-1870) –between Paraguay, Argentina, Brazil and Uruguay; and the Chaco War of 1932-35 with Bolivia. Excellency, could you briefly describe the evolution of Paraguay as a Republic?

H.E.: during these two hundred years of independence Paraguay had experienced various ups and downs in its history, at one point in the XIX century, just after becoming independent; Paraguay was concentrated on becoming self-sufficient, following this period came a time of prosperity and industrialization, on the same pace as in Europe. We even had the first rail system in South America, soon after we were involved in the two wars. Nowadays, Paraguay is an interesting country for political analysis, in the past 22 years we had a succession of democratically elected Governments and we currently have a multiparty Coalition Government. The present Government of President Lugo is focused on a social agenda and is embarked on an ongoing process of reform of the State. Paraguay has excellent relations with its neighbouring countries, and on personal note, I prefer to look to the future in a positive way without resentment of the past.

ANA: India and Paraguay established diplomatic relations on 13 September 1961 the last visit to India was in 2005 by Mrs Leila Rachid, Foreign Minister, There are no significant bilateral agreements or exchanges between the two countries. Would you assess the state of political relations between the two countries as satisfactory?

H.E.: Relations between Paraguay and India have always been warm and cordial; in 2010 we had the first Parliamentary Visit, with a Delegation that was headed by the President of the Paraguayan Congress, who was accompanied by the leaders of different political parties from both Chambers of the Paraguayan Congress. In this regard, we believe that shortly an Indian High Level Parliamentary Delegation will reattribute this gesture by making an equally historic visit to Paraguay. For the Government of Paraguay relations with India are very important, especially considering the fast development of the Indian economy and the emergence of India in the world political scene. Prove of that is the opening of the Embassy of Paraguay in India in 2006. From that period onwards we have explored various areas of cooperation that we hope will soon come to fruition. Likewise, trade between our countries has catapulted sharply over the recent years (recent figures show that trade between Paraguay and India grew over 100% just in 2009-2010).

[expand title="Read More"]Likewise, over the past years we have received several delegations of Paraguayan businessmen who visited India and have signed agreements with Indian companies, thus initiating lasting commercial and cooperative liaisons between both sides. Likewise we have promoted several visits of business delegations from India to Paraguay.

Paraguay presently holds the temporary presidency of MERCOSUR (of which Argentina, Brazil and Uruguay are part of) and with which India has entered into a Preferential Trade Agreement, now in the process of expansion and deepening.

ANA: Excellency, what are the areas of mutual interest between the two countries and are there differences on any major issues?

H.E.: I believe that agriculture can be a point of mutual interest for both countries, specially taking into consideration the fact that both, India and Paraguay, are largely agricultural countries. This make us bound to have similar points of interactions, challenges and opportunities. For example, one area that can best exemplify this synergy is food security, a pressing global issue that can be best faced through the combination of our countries large productive capacity, know-how and technology. Other areas that can be explored by Indian companies in Paraguay are biofuels, mining, new and renewable energies, tourism and infrastructure.

ANA: trade between the two countries is rather low with India's Export in 2010 at a level of U$ 65 million and imports at U$ 72 million. Have there been any initiatives to increase the quantum of trade in the light of India's impressive economic growth and also in view of the fact that in 2010 your country's growth, at nearly 14 percent, was the highest in South America?

H.E.: These figures demonstrate the enormous potential for growth of our trade and investment exchange. Paraguay offers attractive incentives for investment such as the lowest tax burden in the region, a strategic location at the heart of South America, good connectivity and relations with our neighbouring countries and fast and simplified process for setting up companies and a minimal levy on the repatriation of income resulting from these activities.

Likewise there is an important role for the public and private sectors of both countries for the articulations of businesses and investment. Similarly, the Embassy works closely with different chambers of commerce and industry associations both in India and in Paraguay so that to encourage the flow of trade and investment from a wide range of sectors. These numbers are an indication of the rapid growth in our bilateral trade compared to previous decades and the projection of financial institutions about growth of the Paraguayan economy in two digits figures can serve as a perfect backdrop for Indian ventures to be set up in Paraguay.

ANA: Excellency, you are aware Indians have settled in almost all counties in the world. In Paraguay there are only a handful of Indians who largely live in Ciudad del Este carrying out trading, wholesale and retail business. What is the reason for so few Indians in a country of nearly 6.5 million?

H.E.: Paraguay has a strong tradition of migration from all over the world, Paraguay is home to communities that have originally migrated from Central and Eastern Europe as well as from East Asia, all of which live peacefully and have amalgamated and contributed enormously to the Paraguayan culture. The Indian Diaspora in Paraguay is still a recent trend in the history of our various waves of migration and my country is open to professionals and businessmen who want to settle down there.

ANA: Excellency, terrorism is worldwide phenomenon that is closely linked to organized crime. There is evidence that illicit drug trafficking funds terrorism. India has suffered from this phenomenon as it is geographically located between the world's two largest illicit opium poppy growing regions. Some countries in South America are also dealing with illicit drug production and trafficking. What is your country’s position in this matter?

H.E.: the trade of illicit drugs is a complex and global problem that is not limited to one country, and we are conscious of that. The Government of Paraguay is actively combating drug trafficking by working closely with international organizations, and the DINAC (organization in Paraguay in charge of this matter) carry out checks on all borders crossings, including the main airports of the country, for the permanent control and the investigation of cases involving the traffic of illicit drugs. With regards to terrorism, Paraguay is a peaceful country and on this matter we have unequivocally expressed our condemnation to terrorist acts and organizations all over the world and we have voiced our disapproval at the United Nations and other international forums on various occasions.

Finally, I would like to point out that 2011 is a very important year for Paraguay, as we will be celebrating the 200th Anniversary of our National Independence, a process that took place in the evening of May 14th, 1811 when one of the founding fathers of the nation, accompanied by other illustrious patriots, requested to the Spanish Governor to hand over power so that people can be governed by Paraguayans. This was a pacific transition of power, without bloodshed, so much so that by the morning of May 15, 1811 Paraguay was already independent from Spanish rule. Likewise, this year we will be celebrating the 50th Anniversary of the Establishment of Diplomatic Relations between India and Paraguay, in other words, half a century of warm relations, and the different cultural events planned for the rest of the year will celebrate this two very important anniversaries.