From the Introduction: "Paraguay is a landlocked country in South America bordered by Argentina, Bolivia, and Brazil. The United States has had close relations with Paraguay for decades, providing assistance to counter corruption and spur trade and economic development. The United States and Paraguay also work together closely on counterterrorism and counternarcotics, among other security issues of interest to some Members of Congress. In July 2022, the State Department imposed sanctions (visa restrictions) against former Paraguayan President Horácio Cartes (2013-2018) for alleged involvement in significant corruption. In early August, the U.S. government sanctioned Vice President Hugo Velázquez also for alleged corruption and bribery, prompting him to withdraw his candidacy ahead of presidential elections scheduled to be held in April 2023. U.S. sanctions of such high-ranking officials have fueled speculation that tensions in the U.S.- Paraguayan relationship may increase, although neither government has indicated that has occurred."
CRS In Focus, IF12207
Congressional Research Service: https://crsreports.congress.gov/