Paraguay Demands U.S. Ambassador’s Departure Amid Diplomatic Tensions Over Sanctions
Asunción, August 9, 2024 – Paraguay has called for the U.S. ambassador, Marc Ostfield, to leave the country, marking a significant escalation in diplomatic tensions. The move follows Ostfield’s recent statements linking Tabesa, a tobacco company owned by former Paraguayan President Horacio Cartes, to corruption and sanctions imposed by the U.S. Treasury Department.
Background
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) recently imposed sanctions on Cartes, accusing him of engaging in “corrupt activities that undermine democratic institutions in Paraguay.” These sanctions, part of the Global Magnitsky Human Rights Accountability Act, also targeted Tabacalera del Este S.A. (Tabesa), a major tobacco company controlled by Cartes. The U.S. alleges that Tabesa is involved in illicit financial activities, including money laundering and smuggling.
The U.S. ambassador’s comments, made during a public event, reiterated these allegations, drawing a sharp rebuke from Paraguay’s government, which considers the sanctions an unwarranted interference in its internal affairs. The Paraguayan government perceives the U.S. actions as politically motivated, aimed at destabilizing the current administration, which is closely aligned with Cartes’ Colorado Party.
Paraguay’s Response
In an official statement, Paraguay’s Foreign Ministry expressed its “strongest protest” against the U.S. ambassador’s remarks and announced that it had requested Ostfield’s departure. The ministry emphasized that Paraguay values its sovereignty and will not tolerate external attempts to influence its domestic politics.
The decision to expel the U.S. ambassador reflects growing frustration within Paraguay over what it sees as the United States’ undue influence in its political landscape. President Santiago Peña, who assumed office earlier this year, has been under pressure to distance himself from Cartes, his political mentor. However, the sanctions have instead appeared to solidify the relationship between the current administration and Cartes.
U.S. Reaction
The U.S. State Department has expressed disappointment over Paraguay’s decision but has not yet announced any retaliatory measures. In a brief statement, the department reiterated its commitment to fighting corruption globally and supporting democratic institutions in Paraguay. The State Department also reaffirmed that the sanctions against Cartes and Tabesa were based on credible evidence of illicit activities.
Implications for Bilateral Relations
The expulsion of the U.S. ambassador is likely to strain relations between Paraguay and the United States, which have historically maintained strong ties, particularly in areas such as trade, security, and counter-narcotics efforts. The situation could also impact Paraguay’s standing with other international partners, as it navigates the complex dynamics of maintaining sovereignty while engaging with powerful global actors.
Analysts suggest that this diplomatic rift could lead to a reevaluation of U.S. foreign policy in the region, particularly in its approach to combating corruption and promoting democracy. The situation in Paraguay may serve as a test case for how the U.S. handles pushback from governments accused of corruption but remain strategically important allies.
Paraguay’s request for the U.S. ambassador to leave the country is a bold move that underscores the deepening rift between the two nations. As the situation unfolds, it remains to be seen how both Paraguay and the United States will navigate this diplomatic crisis and what the long-term implications will be for their bilateral relationship.
