In recent years, Paraguay’s level of exports has grown in a sustained manner. For this reason, we will discuss the advantages of exporting from Paraguay and how you can start a business in this field.
Especially noteworthy is the positive balance achieved by Paraguay . Thanks to the commercial exchange with the countries of the Southern Common Market (Mercosur).
Argentina Brazil and Uruguay are considered the natural partners of Paraguay. Its proximity and historical, cultural and commercial ties make it possible.
Paraguay has excellent export possibilities. When looking at more distant markets, as is the case of the European Union. This is one of the main advantages of exporting to Paraguay,
In 2017, Paraguay exported products for an amount of US $ 6,575 million , a figure in which the export of electricity is not included.
This represented a 3.2% increase in exports compared to the previous year, which closed at US $ 6,371 million.
In total, in 2017 Paraguay exported to 142 countries and territories. The sum of its exports and imports was close to US $ 20,000 million.
Advantages of exporting to Paraguay to the European market
Europe is a potential market for export from Paraguay
The advantages of exporting from Paraguay to Europe were reflected in an analysis presented in December 2019 by the Center for Analysis and Diffusion of the Paraguayan Economy (CADEP)
This study analyzes the relationship between Paraguay and the European Union. It highlights that there are 14 items that can compete advantageously compared to those of other countries that aspire to conquer that market.
The Paraguayan products with the greatest competitive advantage are oilseeds, sugar cane, wood, meat products and leather.
He too arroz paraguayo (en cáscara y procesado), as well as a wide variety of fruits and nuts can be brought to Europe. Prices can be very competitive with respect to those produced in the European Union and other places in the world.
Paraguay is currently among the 10 largest agricultural and livestock producers in the world and is the sixth exporter of beef.
It also occupies the fourth place in the world for soybean exports and ranks among the top ten in corn and wheat.
Why should exporting to Europe be a priority for Paraguay?
According to CADEP’s analysis, it is very beneficial for Paraguay to penetrate the European market, taking into account that the Gross Domestic Product of the European Union represents 22% of world GDP.
In comparison, Mercosur only represents 3.1% of the World GDP.
According to CADEP, if Paraguay manages to conquer 5% of the European market , the Paraguayan Gross Domestic Product could increase proportionally by 50% .
Among the advantages of exporting from Paraguay, the sustained reduction in the export of primary products to Europe during the last 17 years, which have migrated to processed products, stands out.
In 2003, primary products represented 74% of exports to the EU. While in 2018 it had already dropped from 20%, according to figures provided by the Single Export Window (VUE) of the Central Bank of Paraguay (BCP).
Economic stability benefits Paraguayan production and exports
Since the late 2010s, Paraguay’s GDP has grown steadily, averaging 4.8% annually.
When talking about the advantages of exporting from Paraguay, we note that this figure is much higher than most Latin American economies, which together show an average annual growth of less than 1.9%.
The continent is a mixture of nations with different situations, some tragic like Venezuela that decreases 3.6% annually since 2013 and others with ups and downs like Mexico and Brazil.
Paraguay has not been without problems, as a severe drought and then a period of floods in 2019 also affected its economic indicators.
But the most important thing is that the political class and the business community share the objective of developing the country in all possible areas, which helps the country to maintain positive figures year after year.
A young population, the stability of the Guaraní and an external debt that barely reaches 20% of GDP also help to strengthen the productive apparatus and internal consumption.
And although Paraguay does not have coasts in the Atlantic Ocean, it has large rivers and one of the largest barge fleets for the transportation of merchandise in the world.
How to start the process to be an exporter in Paraguay?
Among the advantages of exporting to Paraguay, it is worth mentioning that the Paraguayan legal framework stands out for promoting new economic ventures, but it is also strict on customs and foreign trade.
The reason is that the Paraguayan State has among its priorities the surveillance and fight against tax evasion, contraband and the use of export processes to support illegal activities.
The regulatory body for imports and exports in Paraguay is the National Customs Office (DNA).
However, depending on the item to be exported, certain certificates issued by other government agencies are required.
However, depending on the item to be exported, certain certificates issued by other government agencies are required.
The Unified System for Opening and Closing Companies (SUACE) offers the possibility of doing this easily.
In addition, it is mandatory to register in the Exporters Registry of the Single Export Window (VUE).
Detailed information about the documentation required to register can be obtained from the portal of this organization at the address www.vue.org.py .
Permits and certificates vary according to the item to be exported
Once the company is registered, the export authorization must be requested and obtained, which will be exclusive for each item that you wish to export from Paraguay.
Each item requires the processing of a particular set of permits before different government agencies.
For example, the export of the following items is processed in dependencies attached to the Ministry of Agriculture and Livestock:
- Vegetable products: This item requires a phytosanitary certificate, which must be requested from the Plant Defense Directorate.
- Forest: They must have a forest guide issued by the National Forest Service.
- Of animal and nutritional origin: For these items, a zoosanitary certificate must be requested and obtained from the Directorate for Control of Food and Products of Animal Origin.
On the other hand, for the export of manufactured goods of industrial origin it is required to process the respective industrial registration before the Ministry of Industry and Commerce.
Regarding the export of pharmaceutical and chemical goods, the interested party must process a sanitary and quality control certificate.
This document is issued by the Health Surveillance Division of the Ministry of Public Health and Social Welfare.
It is noteworthy that the export of handicrafts and similar products requires a certificate of origin, issued by the Artisan Promotion Service.
Mandatory requirement: export clearance certificates
The advantages of exporting from Paraguay are many, but if you want to export from this nation it is mandatory that you have Export Clearance Certificates, which are prepared by a customs agent .
It is mandatory to make a declaration of the goods to be exported before the General Directorate of Customs of Paraguay to obtain this certificate.
In addition, the participation of the customs agent in these procedures is mandatory according to the laws of the country.
This is very convenient for the exporter, as the customs agent can give you better guidance on the current procedures and regulations.
A point to note is that exports from Paraguay can be done under two modalities , that of temporary export and that of definitive export.
These modalities may be used at the convenience of the exporter and based on a list that must be consulted with the customs agent.
Consult with the best to export from Paraguay
If you want to carry out an export from Paraguay project, you must have the support and advice of an expert company in the field.
Alfa Trading S.A is a Paraguayan company with more than 28 years of experience in the area of international logistics.
Our agents have extensive knowledge of international freight , customs formalities and everything related to import and export to and from any Place of the world.
For this reason, we are the ideal company to support you as an exporter and guide you in all the procedures and options available for the success of your operation.
We also offer you global coverage since we have cargo agents in all ports and airports in the world, ready to assist you throughout the logistics process.