Japan and Paraguay signed an investment protection agreement to strengthen bilateral investment by providing legal safeguards, dispute mechanisms, and incentives for Japanese companies to invest in Paraguay.
Japan’s Ministry of Foreign Affairs announced, on 6 December 2025, that Japan and Paraguay signed the “Agreement for the Promotion and Protection of Investment” on 5 December 2025.
The agreement is designed to strengthen investment relations between the two countries by providing protection and clear rules for investors. It covers measures such as national treatment for investments, most-favoured-nation treatment, fair and equitable treatment, conditions for expropriation and compensation, freedom of capital transfers, and procedures for resolving disputes.
The agreement will enter into force once both countries have completed their internal approval processes and have notified each other through diplomatic channels.
In Japan, this requires approval from the National Diet (the national legislature).
The treaty will become effective on the 13th day after the latter of the dates of receipt of the notifications.
