Taiwan's 2027 Latin America budget slashes industry fund by nearly 80%

China sanctioned Paraguayan and Belizean officials over their Taiwan ties

Taiwan’s Ministry of Foreign Affairs is requesting about NT$4.87 billion (roughly $150 million) for Latin America and Caribbean programs in its proposed 2027 budget. Within that total, funding for one initiative specifically designed to mobilize Taiwan’s industries in allied countries would fall from NT$374.6 million this year to NT$78.1 million (about $2.4 million), a cut of nearly 80 percent. The figures, reported in a UPI opinion column published Thursday by Thomas R. Field, are part of a budget now before Taiwan’s legislature. The ministry said the larger 2026 allocation reflected startup costs and that unspent funds would carry forward.

The cut comes as Beijing has acted against officials in countries that maintain diplomatic ties with Taipei. On Oct. 12, China’s government announced sanctions against Paraguay’s technology minister, Gustavo Villate, and Belize’s foreign minister, Francis Fonseca. Beijing described the measures as punishment for their support of Taiwan and a warning to others; Taiwan condemned them as interference in its allies’ sovereignty. Paraguay is the only South American country that maintains formal relations with Taipei.

The NT$4.87 billion request covers Taiwan’s Diplomatic Allies Prosperity Project and infrastructure and vocational training programs, Field reported. The Foreign Ministry, which introduced the Prosperity Project after Foreign Minister Lin Chia-lung took office in 2024, inaugurated a new economic and trade office in July to coordinate public-private cooperation. New rules also allow Taiwanese companies investing in allied countries to receive subsidies of up to NT$60 million (about $1.9 million) over seven years.

On the trade side, Paraguay exported 7.4 million metric tons of soybeans during the first eight months of 2026, overwhelmingly to Argentina and Brazil, according to the Paraguayan grain exporters’ chamber, CAPECO, as cited by Field. Taiwan does not appear among the destinations. Most Paraguayan beans travel downriver to Argentina for processing, Field wrote. Taiwan imported about $1.25 billion worth of soybeans in 2025, primarily from the United States and Brazil, according to the U.S. Department of Agriculture.

Meat presents a different picture. Taiwan has become a major buyer of Paraguayan beef and the leading destination for its pork, both of which now enter Taiwan duty-free, Field reported. In September 2025, Taiwanese agricultural industry groups signed letters of intent to purchase about $10 billion in American farm products over four years, non-binding arrangements that nonetheless showed Taiwan could organize substantial purchasing initiatives.

On investment, Taiwanese manufacturer Master Bus is planning a $30 million electric-bus venture in Paraguay’s Alto Paraná region, though its investment and employment figures remain projections, Field reported. Paraguay’s Industry Ministry licensed the Taiwan-Paraguay Smart Technology Park in Minga Guazú in February 2025, initially offering 93 industrial lots and housing five companies; a handful more have arrived or announced plans since. Foxconn sent a delegation to Paraguay in early October to explore investment in artificial intelligence, Field wrote, though whether the visit produces a substantial commitment is what a scorecard would record.

The Taiwan-Paraguay Polytechnic University, established with Taiwanese support, had graduated about 300 engineers by June, its rector, Jorge Duarte, told UPI. The program includes 18 months at Taiwan Tech in Taipei, paid for by Taiwan, which is also financing a permanent campus in Asunción due for completion in mid-2027. Duarte said the campus’s laboratories and faculty would reduce the need for students to travel.

Field, who serves as Regional Representative for Latin America of the Global Peace Foundation and president of the Latin America and Caribbean Presidential Mission, argued in the column that Taiwan’s partnerships will be judged by the economic opportunities they create. He cited a recent essay by Evan Ellis of the U.S. Army War College, who wrote that “at the heart of PRC influence is the allure of opportunity.” Field proposed an annual scorecard, ally by ally, measuring trade expansion, new private investment and jobs created, so partner-country citizens can assess the partnership’s tangible returns.