US moves may undermine Paraguayan power broker Cartes

Significance

The decision does not involve criminal prosecution or financial sanctions against Cartes (except in the United States, where he has business interests). However, it is a major setback for Cartes, who has dominated Paraguay’s political scene for a decade.

Impacts

• The US move is likely to undermine backing for Cartes in key domestic sectors such as agriculture and industry.
• If moves to remove Attorney-General Sandra Quinonez succeed, Cartes could face corruption charges in coming months.
• Charges against Cartes would boost prospects for a unity presidential candidate of the opposition Concertacion Nacional in 2023.