Paraguay has one of the most open economies in South America and this was stated in 2019 by a report from the Central Bank of Paraguay, which gave the country an Economic Openness Index of 72, 6% .
Thus, before the Covid-19 pandemic and its consequences on the world economy, Paraguay already outpaced regional powers in economic openness such as Argentina (32.4%) and Brazil (19.1 %) or neighboring Uruguay (37%).
A large part of the reason for this high level of openness is that Paraguay does not apply protectionist policies on its imports and exports , as do many other countries on the continent.
Currently the main commercial partners of the country are Brazil, China and Argentina. It highlights that while Argentina and Brazil are partners of Paraguay in the Southern Common Market, there are no formal trade agreements with China.
But this has not been a brake so that 20% of Paraguayan global trade in 2019 was related to imports and exports to China.
Who are the buyers of Paraguayan products?
In addition to the countries already mentioned, Paraguay also sells products to countries such as Egypt, India, Israel and several African nations , as well as nations associated with Mercosur (without being full partners) such as Peru, Ecuador, Colombia, Chile and Bolivia.
In addition, it is also a supplier to several countries of the European Union. In fact, the EU applies its Generalized System of Preferences Plus (GSP +) for Paraguayan products, which allows our country to export to Europe without paying tariffs.
Another destination for Paraguayan exports is the group of countries that make up the Association of Southeast Asian Nations (ASEAN), such as Malaysia, Thailand, Indonesia, the Philippines, Brunei, Singapore, Thailand, Vietnam, Cambodia , Laos and Burma.
Products are also exported to Canada, the United States and Mexico, countries that are part of the North American Free Trade Agreement (NAFTA).
What products does Paraguay export to the rest of the world?
In the last 30 years, Paraguay has developed a strong agricultural and livestock industry, which has made it one of the South American countries with the greatest capacity to produce food .
The main export item of Paraguay is soybean , which accounts for 33% of the country’s total exports. In second place is beef (18.7%), corn flour and soy products (11.4%).
Other Paraguayan products that have a high level of exports are electrical cables, rice, hides and skins, plastic containers, fabrics and clothing, wheat and sugar cane.
In general, agricultural and livestock products represent more than 92% of total Paraguayan exports.
Diesel oil, insecticides and herbicides and pharmaceuticals are also found on the list of products most marketed abroad.
Paraguay increased export variety in 2020
According to data from the Investment and Export Network (Rediex) in 2020 Paraguay added 10 new products to its list of exports despite the complications of world production and trade due to the Covid-19 pandemic.
Among the parameters to define a product as “new for export” is that its sales abroad have not exceeded US $ 50,000 between 2013 and 2019 and above all, that it is originally from Paraguay.
This leaves out the re-exports of products brought from China and other parts of the world, which in many cases are resold to the Argentine and Brazilian markets.
The new export products belong to the chemical, textile, agro-industrial, metallurgical and mechanical sectors .
Among them we have steel rods, industrial resins, synthetic fiber fabrics, glass fiber sandpaper, candles, hydrogenated fats and oils, zippers, insulating glass, chicken greases and orbital motors.
According to data from the Single Export Window (VUE), these products had an export value of US $ 3.1 million, of which the steel rods obtained US $ 874,080.
Although this figure represents a small percentage of the country’s total exports, there are high expectations that these items will considerably increase the volume of sales abroad during 2021 and 2022.
Amount of most recent exports from Paraguay
A report by the Central Bank of Paraguay (BCP) published in January 2021 indicated that national exports at the end of 2020 reached a value of US $ 11,505.3 million.
Although this represented a decrease of 9.4% with respect to the figures obtained in 2019, it is a significant figure considering all the problems that the Covid-19 pandemic generated in 2020 in the production, distribution, transport and sales of products around the world.
But something that stands out 74.1% corresponded to certified exports, which had a value of US $ 8,529.2 million , which represented 7% more than what was exported in 2019.
Paraguayan re-exports represented 18% of the volume sold abroad in 2020. The value of these sales was US $ 2,069.6 million, which represents a reduction of 42.3%.
Finally, it should be noted that the trade balance of Paraguay in 2020 registered a surplus of US $ 1,470.2 million .
Do you want to export? Seek the advice of experts
If you want to export from Paraguay it is best that have the support of an expert company in international logistics, such as Alfa Trading S.A .
We are a Paraguayan company with more than 28 years of experience in the international logistics area.
At Alfa Trading we can help you prepare your cargo for shipment from Paraguay to anywhere in the world.
We have Freight Agents in the main ports and airports of the world and we can help you in the monitoring and customs procedures of your merchandise.
And in addition, we also offer technical assistance and we help you prepare a successful plan for your export to any market of your interest.
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