Paraguay's agricultural and energy sectors are open for business

Paraguay, a landlocked country in the heart of South America, has one of the fastest-growing economies in the region, with an average GDP growth of over 4% in the last decade. The country’s economy is heavily driven by agriculture, hydroelectric energy, and a growing manufacturing base. The United States is one of Paraguay’s top trading partners, with bilateral trade in goods exceeding $2.5 billion annually. For U.S. exporters and importers, Paraguay offers a stable macroeconomic environment, a young workforce, and preferential access to Mercosur markets. This advisory provides a practical guide for businesses looking to navigate the opportunities and regulations in the Paraguay-U.S. trade corridor.

Top Import Sectors from the United States

U.S. exports to Paraguay are dominated by machinery, chemicals, and agricultural inputs. In 2023, the United States shipped over $1.3 billion worth of goods to Paraguay, according to the U.S. Census Bureau. The largest category is machinery and mechanical appliances, including tractors, construction equipment, and industrial machinery, which accounted for roughly 25% of U.S. exports. Paraguay’s agricultural sector relies heavily on U.S.-made tractors and harvesters to maintain its status as a top global exporter of soybeans and beef. The second-largest import sector is chemical products, particularly fertilizers and pesticides, which are essential for the country’s intensive farming systems. Paraguay imports nearly all of its fertilizer, and the U.S. supplies approximately 30% of that demand. Other significant U.S. exports include optical and medical instruments, plastics, and aircraft parts. The growing pharmaceutical sector in Paraguay also presents opportunities for U.S. drug manufacturers, as the country imports over 80% of its medicines.

Top Export Opportunities to the United States

Paraguay’s exports to the United States reached approximately $1.2 billion in 2023, with agricultural commodities leading the way. The top export is soybeans and soybean products, which together represent over 40% of Paraguay’s shipments to the U.S. market. Paraguay is the world’s fourth-largest soybean exporter, and American processors value the high protein content of Paraguayan soy. Beef is another major export category; Paraguay is one of the few countries certified to export fresh beef to the United States, and shipments have grown steadily since the U.S. Department of Agriculture (USDA) granted market access in 2014. In 2023, Paraguay exported over 30,000 metric tons of beef to the U.S., primarily as frozen boneless cuts. Other growing export categories include vegetable oils, wood products, and organic yerba mate. The U.S. Generalized System of Preferences (GSP) provides duty-free access for many Paraguayan products, though Paraguay’s GSP status has been subject to periodic reviews. For U.S. importers, Paraguay offers competitive pricing and consistent quality in these agricultural and processed food categories.

Business Entry and Regulatory Overview

Entering the Paraguayan market requires an understanding of its tariff structure, customs procedures, and business registration requirements. Paraguay applies the Mercosur Common External Tariff (CET), which ranges from 0% to 35% for most goods. U.S. exporters benefit from relatively low tariffs on machinery and technology products, often between 0% and 14%. However, agricultural products face higher tariffs and non-tariff barriers, including sanitary and phytosanitary (SPS) measures. Paraguay’s customs authority, the National Customs Directorate (DNA), has modernized its clearance processes in recent years, but delays can still occur. Importers must register with the Single Customs Registry (RUCA) and provide a tax identification number (RUC). For foreign companies, establishing a local subsidiary or partnering with a Paraguayan distributor is common. The country’s investment law, Law 60/90, guarantees equal treatment for foreign and domestic investors and allows for 100% foreign ownership in most sectors. There are no restrictions on profit repatriation, and corporate income tax is a flat 10%. U.S. exporters should also be aware that Paraguay is a member of the WTO and has signed a bilateral investment treaty with the United States, providing additional legal protections.

Key Ports and Logistics Infrastructure

As a landlocked nation, Paraguay relies on the Paraguay-Paraná waterway system and overland routes to connect to global markets. The primary port for international trade is the Port of Asunción, which handles containerized cargo and bulk commodities. However, the majority of Paraguay’s agricultural exports—soybeans, corn, and beef—are shipped via river barges to the ports of Rosario and Buenos Aires in Argentina for transshipment to ocean vessels. The waterway system is efficient and cost-effective, but low water levels during dry seasons can cause delays. Paraguay’s road network is improving, with major highways linking Asunción to the Brazilian border at Foz do Iguaçu and the Argentine border at Encarnación. The Silvio Pettirossi International Airport in Asunción handles air cargo, primarily for high-value or time-sensitive goods such as electronics and pharmaceuticals. For U.S. exporters, shipping via the Port of Montevideo in Uruguay is another viable option, with regular container services connecting to North America. Logistics costs in Paraguay are relatively low compared to other South American countries, but customs brokers and freight forwarders are essential for navigating the river-based supply chain.

Coppermont Advisory for Paraguay

At Coppermont, we help U.S. businesses navigate the Paraguay market with confidence. Our advisory services cover market entry strategy, partner identification, and regulatory compliance. We work with clients in agribusiness, machinery, chemicals, and consumer goods to identify the most promising opportunities and mitigate risks. For companies exporting to Paraguay, we provide tariff classification assistance, customs documentation review, and logistics optimization to reduce costs and transit times. For U.S. importers sourcing from Paraguay, we conduct supplier audits, quality control inspections, and facilitate USDA and FDA compliance for agricultural products. Our team has deep experience in the Mercosur trade framework and maintains strong relationships with local customs authorities, trade promotion agencies, and legal experts. Whether you are exploring the market for the first time or scaling an existing operation, Coppermont offers the local knowledge and strategic support to help you succeed. Contact us to discuss how we can assist with your Paraguay trade objectives.

Ready to Start Trading with Paraguay?

Coppermont’s trade advisors are ready to help you seize opportunities in Paraguay’s dynamic market. From market research to logistics, we provide end-to-end support for importers and exporters. Schedule a consultation today to learn how we can accelerate your trade with Paraguay.