Paraguay authorized the sale of Monsanto's Intacta RR2 Pro genetically modified soybeans, the country's agriculture ministry said on Monday.
Like Monsanto's popular Roundup Ready soy, these beans are resistant to glyphosate-based herbicides, but they also help protect against caterpillars.
Paraguay is the world's No. 4 soybean exporter, although it lags far behind top three suppliers the United States, Brazil and Argentina.
A group of Paraguayan farmers asked the country's courts last week to stop U.S. biotech giant Monsanto from charging royalties for use of its Roundup Ready soybeans, arguing the company's patent on the seeds had expired.