Independence of Paraguay Plata with a capital city in Buenos Aires. It included parts of modern-day Argentina, Bolivia, Uruguay and Rio Grande do Sul. In 1782 a system of municipalities was introduced. The municipality of Paraguay had only one town with city status – Asuncion. During the era of the Napoleonic Peninsula War, when mainland Spain was allied with and later occupied by the French, The British Empire attempted to take control of the Viceroyalty by launching the River Plate invasions, occupying Buenos Aires and neighbouring parts of the Río de la Plata in 1806 and 1807. Paraguayan units led by Governor Velasco
Economy of Paraguay Most of Paraguay's trade takes place with Uruguay, Brazil and Argentina. In 2002 Paraguay conducted more than US$400 million in trade with Argentina and nearly US$800 million with Brazil. Paraguay is also a member of the Inter-American Development Bank, Latin American Integration Association, and Latin American Economic System and a signatory to the agreement creating the South American Community of Nations. In 2004 Paraguay signed an energy cooperation agreement with Venezuela to purchase oil and petroleum. Venezuela agreed to concessional financing that allowed Paraguay to pay over a 15-year period at a nominal interest rate. Imports totaled US$3.3 billion in