我的研究主要專注於巴拉圭與台灣的雙邊關係，特別關注於造惠巴拉圭人民的經濟與科技合作的雙邊貿易．大約於五年前開始，巴拉圭開始嘗試從軟實力外交模式轉變成商業外交模式。

My thesis is focused on the bilateral trade relations between the Republic of  Paraguay and the Republic of China, specifically paying attention to the international trade that boosted the economy and the technical cooperation that the Paraguayan people have benefited from. Approximately, during the last 5 years Paraguay has made an attempt to switch from a soft power diplomacy model to a commercial diplomacy model. The study adopted the qualitative  method that entails a comprehensive analysis of recent literature on both economic and poltical facets of the Paraguay-Taiwan relation. The study has also used Taiwanese media and Paraguayan media in English language. The study shows that the relations between Taiwan and Paraguay were mainly because of technical cooperation, education exchanges, and cultural exchanges but mainly emphasized on offering a good impression of Taiwan existence in Paraguay. The study has further unleashed the instruments taken by federal states such as public diplomay, assistance in areas of development, contact between the military, humanitarian aid, exchange programs, and broadcasting. The study shows that globalization has led to the increased interdependence between countries, which has resulted in increased international interaction. Most international relations are based on pooling resources, sharing information, multinational corporations, international politics, security, and trade. For this interaction to be effective, the parties involved have to formulate an agreement that would guide the relationship. Such an agreement is supported by the mutual decision made by the two parties involved. The study shows that the Economic Cooperation Agreement is the third largest commercial concession for Paraguay after Mercosur and the European Union. On the first part of the Economic Cooperation Agreement, Paraguay agreed to lower tariffs on 19 Taiwanese products, including sporting equipment and ink, while Taiwan reduced import duties on 54 products from Paraguay, such as beef, fruit juice and pet food.

Table of Contents

List of Tables	v
List of Graphs	vi
CHAPTER 1:  INTRODUCTION	1
Introduction	1
1.1 Research Background and Research Question	2
1.2 Research Motivation and Goals	7
1.3 Literature Review	8
1.4 Theoretical Framework and Methodology	12
1.5 Theoretical Framework	14
1.6 Research hypotheses	16
CHAPTER 2: HISTORICAL ANALYSIS	19
Introduction	19
2.1 Paraguay and Taiwan Historical analysis and outcomes	19
2.2 Economic development of Taiwan and Paraguay in the last 40 years	26
2.3 Economic Development Similarities	27
2.4 Differences in Economic Model and Policies of Taiwan and Paraguay	29
2.5 Paraguay and Taiwan Economic Relations	33
2.6 Trade Balance	36
2.6.1 Paraguay Trade Balance	36
2.6.2 Taiwan Trade Balance	37
Summary	37
CHAPTER 3: ECONOMIC COOPERATION AGREEMENT	39
Introduction	39
3.1 Economic Cooperation Agreement	39
3.2 Decision N 1	41
3.3 Decision N 2	44
3.4 Decision N 3	45
3.5 Decision N 4	46
3.6 Decision N 5	48
3.7 Decision N 6	49
3.8 Paraguayan Trade and exports to the world	50
3.9 History of the Paraguayan meat industry	63
3.10 Importance of the Meat Industry in the Paraguayan GDP	68
Summary	68
CHAPTER 4: PARAGUAY'S AND TAIWAN’S RELATION TO INVESTMENT	71
Introduction	71
4.1 Investment and Exports Network, REDIEX	71
4.2 Investment	72
4.3 Incentives for Foreign Investment	78
4.4 Investor Benefits	79
4.5 Maquila Law	80
4.6 Free Zones	80
4.7 Raw Material Regime	81
4.8 Automotive Policy	81
4.9 Legal Framework	84
4.10 Labor System	86
4.11 Occupation Health and Safety	89
4.12 Environmental Legislation	92
Summary	93
CHAPTER 5 - CONCLUSION	95
Other Areas of Research	99
Bibliography	101

List of Tables

Table 1 - Paraguayan Exports to Taiwan, by product during the last decade, from Ventanilla Unica de Exportación, (Rediex, 2020)	35
Table 2 - Paraguayan Global Exports	55

List of Graphs

Graph 1 - A comparison of the composition of the exports during 2003 and 2019 from Banco Central del Paraguay (Rediex, 2020)	51
Graph 2 - Paraguayan global exports. (By product)	56
Graph 3 - Bilateral trade between Taiwan and Paraguay	63
Graph 4 - Meat exports to the world	67

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Thesis 
Dalbosco, Julia. “O Soft Power Nas Relações Taiwan-Paraguai.” Bachelor’s thesis, 2019.
Prieto Gilberto CorreaMarcos. (2015). Taiwan’s Diplomatic Relations with Paraguay during the Presidency of General Afredo Stroessner. Taipei: Tamkang University.