Paraguay and Brazil failed to reach agreement on a revised Annex C electricity-sharing formula at the Mercosur summit in Asunción on 2 July 2026, despite a countdown to the expiry of the 2024 bridge tariff and the 2007 Operational Agreement; Paraguay's electricity utility ANDE has acknowledged the dual expiry will require a fundamentally new negotiating structure from January 2027

The US State Department designated Brazil's Primeiro Comando da Capital and Comando Vermelho as Foreign Terrorist Organisations and Specially Designated Global Terrorists on 28 May 2026, effective 5 June; Paraguay had already made the same designation in October 2025, and Argentina followed suit in June, triggering highest-level border alerts across the Triple Frontier region

Paraguay President Santiago Peña met Taiwan President Lai Ching-te in Taipei on 8 May 2026 and signed agreements on mutual legal assistance in criminal matters, cybersecurity cooperation, and a Sovereign AI and Computing Infrastructure Investment MOU envisioning a phased computing campus reaching 1 gigawatt; Taiwan simultaneously opened its market to Paraguayan poultry exports