Bilateral relations between Switzerland and Paraguay are good, but not particularly well-developed.

Switzerland and Paraguay have concluded bilateral agreements on trade, investment protection, aviation and technical cooperation. Bilateral high-level visits have yet to take place.
In July 2012, all consular services for Paraguay were transferred to the regional consular centre in Buenos Aires (Argentina).

Trade between Switzerland and Paraguay is negligible and stagnant. In 2011, Swiss exports amounted to 17.2 mln CHF, while the value of goods imported from Paraguay – primarily agricultural products and essential oils – totalled 15.2 mln. CHF Swiss direct investments in Paraguay are also low.

Scholars and artists from Paraguay can apply to the State Secretariat for Education and Research (SER) for a Swiss Government Excellence Scholarship.

At the beginning of 2012, there were some 1,390 Swiss nationals living in Paraguay.

In terms of culture, Switzerland has raised its profile in Paraguay by taking part in Francophone Week, the International Film Festival, the “Vino, Chipa y Poesia” Festival (2001–2005) and the “Literatura suiza cerca del fogón” (since 2005). The Swiss Embassy also regularly organises “Suiza está presente en Paraguay”, a fair which showcase Switzerland’s activities in Paraguay.

Switzerland opened a consulate in Asunción in 1887. In 1892, it established diplomatic relations with Paraguay, but there has been an Embassy in Asunción only since 1968.