Introduction: Paraguay achieved its independence from Spain in 1811. In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of all adult males and much of its territory. The country stagnated economically for the next half century. Following the Chaco War of 1932-35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since...

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Economic Overview: Paraguay is predominantly an agricultural economy. The country's main export is soybeans, which makes it highly susceptible to climate and world price changes. Paraguay's economic outlook continues to be affected by the economic performance of its neighbours, particularly its larger Mercosur partners, Brazil and Argentina. Paraguay has floated the idea of negotiating bilateral FTAs with other countries, including the United States.

The robust performance of Paraguay’s agricultural sector in 2010, as well as strong performances in construction and manufacturing, has driven a rebound from the recession in 2009. The ...

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