What is the difference between importing and exporting in Paraguay?

When we speak of foreign trade we refer to the economic exchange (goods and services by currency or by other products) that takes place between Paraguay and the rest of the world. Foreign trade is manifested in the main processes, importation and exportation in Paraguay.

The importation is the action of bringing to the country the products manufactured in other places of the planet that we need for all the regular activities of some industry, commerce and houses.

As an export we have defined the action of moving the national frontier products made in Paraguay that have been sold to private companies in other countries.

The importation and exportation of products are activities that take place simultaneously in all the countries of the world, including Paraguay.

One must understand that without importing the economy of a country, there are always products that are not locally produced and must be betrayed from other latitudes.

In the last few years Paraguay, like other Latin American countries such as Chile, Peru, Mexico and Brazil, have had accelerated growth in their international trade.

Currently Paraguay stands out for its exports of meat and cereals.

How much is Paraguay’s foreign trade in figures?

In its Foreign Trade Report of December 2018, the Central Bank of Paraguay (BCP) reported that during that year the country exported goods for $ 13,821.6 million.

This figure represents an increase of 3.2% with respect to total exports in 2017, which totaled US $ 13,396.4 million.

The report also indicates that the registered exports amounted to US $ 9,045.0 million (65.5% of total exports).

On the other hand, re-exports amounted to US $ 3,250.8 million (23.5% of the total 2018), while exports totaled US $ 1,525.8 million (11.1%).

On the other hand, by 2018 the value of Paraguay’s total imports was US $ 12,917.5 million, up 12.1% from 2017.

The BCP indicated that of this total, 96.3% corresponded to the registered imports (US $ 12,433.9 million).

The rest of imports amounted to US $ 483.6 million (3.7% of the total).

What does it matter and what does Paraguay export?

According to the Economic Compliance Observatory (OEC for its acronyms in English) the main Paraguayan export products are beef and cereals.

The destination countries for these sales are by volume, Brazil, Argentina, Chile, Rusia and Italy.

The bulk of Paraguayan exports represents soybeans, which are sold abroad both as grain and as derivatives (accepted, pulp and solid residues).

Second is fresh or chilled beef, in all sorts of cuts.

As for imports registered in Paraguay in 2017, the largest part will correspond to petroleum and derivatives, petrochemicals and automobiles.

To this is added the importation of electronic products, industrial machinery and raw material for the agroindustry, like seeds, fertilizers, herbicides and fungicides.

Why do you need to import and export?

Imports allow countries to cover the needs of their population with goods that their local productive apparatus has no capacity to manufacture.

On the other hand, exports allow foreign exchange to be sold to other countries by selling to other products which they can manufacture at large volumes and at the lowest price.

A concept used in the world of foreign trade is that of ‘competitive selling’.

It is considered as countries with low competitiveness capacity to those who need to import bad goods or to hire the largest number of services.

In turn, those who produce the best goods and services will be considered as having the greatest ability to compete with each other in world markets.

In addition, countries that give priority to imports and can pay for these do not have to apply policies to develop local production of goods.

On the contrary, those who prioritize the exportation are to invert great resources to consolidate a certain type of production that insures the biggest currencies.

Examples of this are some oil-producing countries such as Saudi Arabia and Venezuela, where the gas and oil industry was the biggest reversal for decades.

They are exporting to large oil cantons, but also have to import more than 90% of all the products they require.

As international trade moves millions of dollars into foreign currencies, for many nationals it is vital to strike a balance between imports and exports.

The tendency is to favor exports, because this genre is inwardly foreign-exchange to the country that sends its products abroad and helps to maintain the balance of internal inflation.

Moreover, exporting more means producing more. Therefore, the exporting countries have the worst companies, with the largest number of employees and the highest salaries.

On the contrary, imports are spent and if this is the highest in the country, it can afford to finance its health, education and public services.

To sum it up that the importation in general does not generate more bad salaries, because much less human resource is required to fill a country with imported goods than to manufacture them locally.

The relationship between import and export levels of a country is called the Commercial Balance.

One ideal is that there is a balance between the two in real life and no country is totally self-sufficient.

That is why the trade balance will lean in favor of imports.

With which countries trade in Paraguay?

Currently most imports into Paraguay come from China, Brazil, Argentina, the United States and Chile.

This is how they report on the Central Bank of Paraguay and on those such as the Observatory of Economic Complexity (OEC for its English acronyms).

On the other hand, exports of Paraguayan products are concentrated mainly in Brazil, Argentina, Chile, Rusia and Italy, in order of the largest volume.

Paraguay’s trade balance in 2018 has a US $ 904.1 million surplus. This figure is excellent considering that the country only surpasses 6.8 million inhabitants.

How are imports and exports made?

Importation and exportation in Paraguay of goods is carried out by sea, land and air transport.

For each type of product there is an ideal transport type.

Products such as petroleum and its derivatives, as well as processed foods are mainly transported by sea and land.

There are also products that require refrigeration or to maintain a constant temperature, which requires specially packaged transport media.

One of the important aspects of importation and exportation is that international standards for the movement of cargo from one country to another must be met.

Each year increases the number of trade agreements between countries of all continents, which reduce red tape and import duties.

Then, I have to comply with a whole variety of documentation and permits to move these charges, as well as to pay the importation fees when it comes to trading the Paraguay.

The best way to export or import products in Paraguay is to use international logistics services that ensure the success of the shipping and receiving process.

In Alpha Trading we have over 28 years of experience related to international logistics services from Paraguay.

We can assist you in preparing your import or export activities, with the lowest cost and maximum operating efficiency.

International logistics services provided by Alfa Trading include all related to customs and maritime, air and land transportation.

We are also responsible for following up and verifying the delivery of your products to your destination, as well as guiding you through the procedures and requirements required in each country.