The United States has announced the signing of an "open skies" transport agreement with Paraguay, modernizing aviation relations between the two nations.

U.S. Ambassador to Paraguay John F. Keane and Acting Paraguayan Foreign Affairs Minister Marciel Bobadilla Guillen signed the agreement Monday in Asuncion.

A State Department release says the agreement frees up commercial airlines in the two nations to make decisions regarding flight routes, flight frequency, designations and pricing with minimal government interference.

It also allows airlines in either nation to perform cargo operations without connecting to their home country.

Paraguay becomes the 68th country to sign a bilateral open skies agreement with the United States.