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Although it is a landlocked country, Paraguay is open to international trade, which represents 65% of the country’s GDP. Even though Paraguay is a founding member of Mercosur, the country was excluded from the bloc in 2012 due to President Fernando Lugo’s impeachment, but soon re-joined the group in 2013, after President Horacio Cartes was elected. Paraguay is the 93rd largest exporter and the 100th largest importer in the world. The country mainly exports soya beans (25.2%), electrical energy (20.4%), meat of bovine animals (13.1%), oil-cake and other solid residues (9%), and soya-bean oil and its fractions (4.9%). Its main imports include electrical apparatus for line telephony (11.3%), petroleum oils (11.2%), motor vehicles (4%), insecticides (3.5%), and mineral or chemical fertilisers (2.2%). According to IMF Foreign Trade Forecasts, the volume of exports of goods and services increased by an estimated 15% in 2021 and is expected to increase by 6.5% in 2022, while the volume of imports of goods and services decreased by an estimated 2.4% in 2021 and is expected to increase by 4.9% in 2022.
Paraguay's main trade partners are Brazil, Argentina, China, the United States, Chile, Russia, and Singapore. The Government’s economic policy aims to increase international trade in order to boost the economy and to develop competitive sectors, through low and uniform tariff protections. In an attempt to diversify its economic partners, the country has sought permanent membership to the Pacific Alliance trade bloc, as it is currently only an observer. Additionally, the relatively improved economic situation in Brazil and Argentina - Paraguay's main trade partners - should further benefit Paraguayan exports. However, restrictions on access to credit and high interest rates, as well as the high cost of transportation and telecommunication services, are still major obstacles to the expansion of trade in the country. Paraguay is a member of the WTO and Mercosur, and has trade agreements with Colombia, Egypt, Israel, Peru, Bolivia, Chile, Morocco, Mexico, and India.
While it has remained in surplus, Paraguay’s trade balance has been unstable since 2006. In 2020, the country’s trade balance was positive and amounted to USD 1,250 billion. According to the WTO, imports of goods amounted to USD 10,2 billion, while exports reached USD 8,5 billion. Exports increased mainly due to a surge in the value of re-exports and to increased soybean sales, while imports for domestic consumption grew driven by food, beverages, textiles and the acquisition of durable goods, such as automobiles and electrical appliances. Concerning the trade of services, the imports were equal to USD 866 million, while exports amounted to USD 655 million.
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 11,875 | 13,334 | 12,544 | 10,217 | 13,560 |
Exports of Goods (million USD) | 8,680 | 9,045 | 7,652 | 8,529 | 10,547 |
Imports of Services (million USD) | 1,175 | 1,244 | 1,212 | 866 | 878 |
Exports of Services (million USD) | 938 | 990 | 967 | 655 | 998 |
Imports of Goods and Services (Annual % Change) | 12 | 8 | -2 | -15 | 21 |
Exports of Goods and Services (Annual % Change) | 8 | -0 | -3 | -9 | 2 |
Trade Balance (million USD) | 1,693 | 582 | 213 | 1,244 | 580 |
Foreign Trade (in % of GDP) | 71 | 73 | 71 | 63 | 71 |
Imports of Goods and Services (in % of GDP) | 33 | 36 | 35 | 29 | 35 |
Exports of Goods and Services (in % of GDP) | 38 | 37 | 36 | 34 | 36 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2022 |
---|---|
Brazil | 36.9% |
Argentina | 20.7% |
Chile | 11.1% |
Russia | 3.6% |
United States | 2.6% |
Uruguay | 2.1% |
Israel | 1.4% |
Poland | 1.3% |
India | 1.3% |
Pakistan | 1.3% |
Peru | 1.0% |
Bolivia | 1.0% |
United Kingdom | 0.9% |
Italy | 0.8% |
South Korea | 0.8% |
Singapore | 0.7% |
Vietnam | 0.7% |
Saudi Arabia | 0.6% |
Netherlands | 0.6% |
Germany | 0.5% |
See More Countries | 25.1% |
Main Suppliers (% of Imports) |
2022 |
---|---|
China | 29.6% |
Brazil | 23.2% |
United States | 9.6% |
Argentina | 7.9% |
Singapore | 2.4% |
India | 2.4% |
Germany | 1.8% |
Russia | 1.7% |
Japan | 1.5% |
South Korea | 1.3% |
United Arab Emirates | 1.3% |
Mexico | 1.1% |
Spain | 1.0% |
Uruguay | 1.0% |
Switzerland | 1.0% |
Netherlands | 0.8% |
Chile | 0.8% |
Canada | 0.8% |
Italy | 0.8% |
France | 0.8% |
See More Countries | 27.3% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows
Member of Latin American Integration Association
Member of Free Trade Area of the Americas (FTAA)
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Member of Latin American Integration Association
Member of Free Trade Area of the Americas (FTAA)
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
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Latest Update: February 2023
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