Argentine President Javier Milei’s whirlwind visit to Asunción this week has put the spotlight on Paraguay’s economic success story and the deepening political alliance between the two neighboring nations. In a series of high-profile appearances, including a keynote at the CPAC Paraguay conference and a formal address before Paraguay’s Congress, Milei drew sharp contrasts between Paraguay’s steady growth and Argentina’s recent struggles, while warning against what he calls the dangers of political moderation.
On September 16, 2025, Milei took the stage at the Conservative Political Action Conference (CPAC) Paraguay, held at a downtown hotel in Asunción, to a crowd of 600 attendees. The forum opened on a somber note, with Milei leading a minute of silence in memory of Charlie Kirk, the US conservative activist who was recently shot and killed at a Utah university event. "I want to begin by remembering Charlie Kirk, one of the best popularisers of the ideas of liberty," Milei told the audience, as reported by Buenos Aires Times. He urged those present not to let Kirk’s death paralyze their commitment to the cause. "His death must not paralyse us. We have an obligation to stay on the front line and not yield in the battle for ideas. Sooner or later, good and truth will triumph."
CPAC president Matt Schlapp echoed the gravity of the moment, describing the gathering as occurring "at a critical moment" for international politics, especially in light of the killing of the right-wing influencer. The conference, known for championing conservative and libertarian ideals, provided a fitting backdrop for Milei’s unapologetically ideological message.
In his remarks, Milei did not mince words about his political philosophy. He rejected the notion of a "third way" or moderate politics, framing the current moment as a battle between free enterprise capitalism and socialism. "There is free enterprise capitalism and there is real socialism. Any intermediate solution leans towards socialism and that means poverty," he declared. With Argentina’s October midterms looming and his administration facing mounting political and economic challenges, Milei warned, "It is important to understand that there are no third ways. Any so-called moderate option is functional to the decadent system we are working so hard to leave behind." He pressed further: "There is no room for greys – what’s right is right and what’s wrong is wrong. There is no negotiating with evil. You have to know what is correct and what is wrong."
But it was Paraguay’s economic model that drew his most effusive praise. Milei called Paraguayan President Santiago Peña’s administration "an example of what should be done in the economic area." He credited Paraguay’s embrace of "the ideas of liberty," its success in taming inflation, and its innovative maquila regime for creating jobs and boosting exports. "Thanks to their regime of export assembly plants, they have known how to exploit their local industry to its maximum, increasing exports and creating genuine jobs," he said, according to Buenos Aires Times. Milei contrasted this with Argentina’s trajectory, which he described as a period of "elephantiasis of a state with enormous public spending," debt accumulation, and repeated defaults. "Between 2012 and 2024, Paraguay averaged annual growth of 3.1 percent, while Argentina declined 0.1 percent in the same period. In per capita terms we are 15 percent down — a truly terrifying regression," he noted, referencing the Peronist opposition’s legacy.
Paraguay’s maquila regime, established by Law No. 1064 in 1997 and regulated in 2000 by Decree No. 9585, has been a cornerstone of its economic ascent. The system allows companies to produce goods or provide services for export under favorable tax conditions, including exemptions on import duties for raw materials and machinery. While all production must be exported—meaning local consumers miss out on these goods—the mechanism has been credited with generating thousands of jobs and driving export growth. "Their experience is irrefutable proof that when regulations accompany instead of hinder, when taxation is low instead of suffocating, the commercial capacity of countries grows," Milei remarked.
In contrast, Milei was unsparing about Argentina’s own industrial policy. He argued that Argentina had spent the last century propping up a loss-making national industry, dictated by "the ideological whims of politicians in power, rather than market demands." The result, he claimed, was stagnation and decline, especially when set against Paraguay’s upward trajectory. "While you have not stopped growing, we have deepened our decline," Milei told Paraguay’s Congress on September 17. "If we compare the last 20 years, we will find almost diametrically opposite results. I can't help but think about what my country can learn from you."
The Argentine president also highlighted the political and diplomatic alignment between his government and Peña’s. Both leaders share strong support for Israel, including the decision to open embassies in Jerusalem, and have found common ground on Mercosur’s trade policy. The relationship has grown notably close since Peña became the first Latin American head of state to visit Buenos Aires after Milei’s inauguration in December 2023.
Beyond rhetoric, Milei outlined a series of bilateral projects aimed at deepening economic and infrastructural ties. These include the construction of a new international bridge, studies on exporting Argentine natural gas to Paraguay and Brazil, and agreements to improve the efficiency of the Paraguay-Paraná Waterway. "It is our deepest desire to improve the quality of life of our peoples, ensuring that more Argentine goods and services can access the Paraguayan market and vice versa," Milei told lawmakers, adding that he hoped this cooperation would serve as a regional example of trade openness and shared development.
Milei’s visit wasn’t without its challenges. He is currently facing one of the most significant crises in his 21 months in office, with accusations of corruption swirling around his administration—including his sister and chief-of-staff, Karina Milei, who joined him for lunch with Peña. Political headwinds at home, combined with ongoing financial turbulence, have made his embrace of Paraguay’s model all the more pointed. Yet, Milei remained defiant, insisting that both Argentina and Paraguay now have presidents "who understand that the state should not be an obstacle to development. Both have returned the state to its essential function, which is to create conditions for private initiative to flourish."
After his formal engagements, Milei met with hundreds of young people at the Secretaría Nacional de Deportes sports centre and delivered a lecture on technology and growth to the FEIP manufacturers association. The packed agenda underscored his intent to build not just government-to-government ties, but also to engage civil society and the business community.
As Milei wrapped up his state visit, the message was clear: Argentina, battered by years of economic mismanagement, is looking to its smaller neighbor for inspiration—and perhaps a blueprint for its own recovery. Whether Milei can translate admiration into meaningful reform at home remains to be seen, but for now, the alliance between Buenos Aires and Asunción stands as a striking example of how economic philosophy and political will can reshape regional dynamics.