Relations between Germany and Paraguay are friendly. The people of Paraguay have a very positive image of Germany, which is based on technological and economic successes and the achievements of the Mennonites who moved to Paraguay.

Roughly 30,000 German nationals and some 150,000 people of German descent live in Paraguay, including in the Mennonite colonies in Chaco and in eastern Paraguay. The Mennonites have, over the generations, done much for the development of the country, especially in the field of agriculture. Germans are one of the largest immigrant groups. Emigration from Germany to Paraguay has increased again since 2015.

Ties between Paraguay and the European Union have continued to strengthen in recent years. Paraguay belongs to the MERCOSUR free trade area. The EU-Mercosur free trade agreement was signed in Asunción on 17 January 2026 and partially came into force provisionally on 1 May 2026. Among the European Union member states, Spain and Germany are particularly important partners.

Trade with Germany was worth 332.9 million euro in 2025. German exports amounted to 273.2 million euro, while imports from Paraguay totalled 59.7 million euro. Paraguay’s main imports from Germany are chemical products, automobiles, machinery and electrical goods; it primarily exports raw materials, above all oleaginous seeds and fruits. In the course of the “BMZ 2030” reform of the Federal Ministry for Economic Cooperation and Development, bilateral development cooperation with Paraguay was terminated. However, EU development cooperation continues, and Germany still participates in triangular cooperation and regional projects.

A German-Paraguayan Cultural Agreement has been in place since 1994. This makes it possible for German teachers to be seconded to Paraguay. The Goethe School was established in 1893. It is both a German School Abroad and an international school, attended by 1300 pupils and supported by seven seconded teachers.

German as a foreign language is widely taught in the country. Each year, roughly 500 people take the exams to obtain language certificates at the 15 PASCH schools.

In Asunción, there is a German-Paraguayan cultural institute (Instituto Cultural Paraguayo-Alemán (Goethe-Zentrum)) that makes a major contribution to the capital’s cultural scene, offering language courses and a wide range of cultural events. The German-Paraguayan University (UPA) is a private binational university with a focus on business and engineering. A German Academic Exchange Service lectureship provides advice on studying and scholarships.