ASUNCION, Paraguay– Paraguay’s government on Thursday effectively ordered the U.S. ambassador to leave the South American nation, raising tensions between allies in the wake of the Biden administration’s sanctions on a tobacco company linked to the country’s powerful former president.
In a dramatic statement that took diplomats by surprise, the Paraguayan Foreign Ministry asked the US government to “accelerate the departure process” of Ambassador Marc Ostfield, a career diplomat appointed by President Joe Biden in June 2021.
Ostfield’s accelerated departure, the ministry said, “would prevent a loss of trust in one person from damaging the relationship we have historically maintained.”
The request appeared to be a protest against the White House’s latest move to toughen its sanctions against Horacio Cartes, one of Paraguay’s richest people who was president from 2013 to 2018, owns dozens of lucrative businesses and retains considerable influence over the ruling Colorado Party of the country. . The US government sanctioned the cigarette magnate for the first time last year, accusing him of “significant corruption.”
On Tuesday, the The US Treasury Department announced sanctions on Tabacalera del Este, a large tobacco producer that the US government accused of illegally funneling millions of dollars to Cartes, its former majority shareholder. The company, also known as Tabesa, angrily rejected the allegations and called the sanctions an “abuse of power” by the US government. Cartes denied all corruption allegations and said he no longer owns or is directly involved in Tabesa’s operations. .
The US Embassy in Paraguay confirmed that the Ministry of Foreign Affairs had summoned Ambassador Ostfield for a meeting on Thursday, saying only that “they had a good discussion and talked about the sanction announcement, as well as other issues.” Summoning a foreign ambassador to explain is usually intended to express the host country’s protest.
The U.S. Embassy did not comment on Paraguay’s demand that Ostfield leave on an accelerated schedule.
It was immediately clear when the ambassador would leave. Ostfield’s successor has been named, but the Senate has not begun the confirmation process, which could take anywhere from a few months to a few years.
At a press conference, Paraguayan Foreign Minister Rubén Ramírez Lezcano said the government objected to “the media coverage and politicization of the government’s sanctions.”
“The direct or indirect intervention of any State in the internal affairs of Paraguay compromises our independence and sovereignty,” he stated.
His comments apparently referred to a press conference called by Ambassador Ostfield earlier this week in which he highlighted his commitment to anti-corruption reforms in Paraguay, saying that the Biden administration was prepared to “use the range of relevant tools to combat corruption, including visas.” restrictions, designations, financial sanctions and extradition.”
Although it is standard language in diplomacy, the mention of extradition raised alarms and provoked a frantic debate in Paraguay, where Cartes loyalists have a majority in both houses of Congress. In a show of support and defiance, and a sign of Cartes’ lasting influence, dozens of lawmakers from the conservative Colorado Party showed up at Cartes’ mansion in the capital of Asunción on Tuesday after the sanctions were announced.
Noticeably absent from the photo that emerged showing a crowd of smiling politicians surrounding Cartes on his pool deck was President Santiago Peña, a key ally and political protégé of Cartes.
Pressure was mounting on Pena to defend the former president, observers said, even as credit agencies warn that concerns about corruption continue to weaken investor confidence in one of Latin America’s fastest-growing economies.
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