In the first half of 2024, Paraguay achieved a notable milestone in its export performance, reaching a record total of $8.57 billion—an unprecedented figure over the past five years. This surge also marks the highest level of market diversification for Paraguayan goods, with exports reaching 136 different countries, according to a preliminary foreign trade report from the Paraguayan Central Bank.
The report highlights a robust performance across various product categories. Exports of primary goods, including key items such as soybeans and wheat, totaled $2.48 billion, reflecting a 4.0% increase from the previous year. Manufactured goods of agricultural origin (MOA) also saw a rise of 1.8%, reaching $2.02 billion. Additionally, manufactured goods of industrial origin (MOI) experienced a significant boost, amounting to $803.5 million—up 7.9% from June 2023.
Notably, the pork export sector saw a dramatic increase, with shipments soaring to $14.1 million, a staggering 125.1% rise from the $6.2 million reported in the same period last year. Taiwan emerged as the leading market for Paraguayan pork, absorbing 91.7% of these exports.
Paraguay’s role in the global soybean market continues to be pivotal. Despite its unique diplomatic stance, maintaining full relations with Taiwan while engaging extensively with China—Paraguay’s largest import partner—the country has solidified its position as a significant soybean exporter.
In terms of export destinations, Mercosur remains a dominant market for Paraguayan goods. Argentina leads the list, importing $2.33 billion worth of Paraguayan products, accounting for 39.2% of total exports. Brazil follows closely with $1.76 billion, a 25.5% increase from the previous six months, highlighting strong demand for Paraguayan rice, soybeans, electricity, and maquila products. Chile, however, saw a decrease, importing $453.5 million worth of goods, primarily beef and rice—a 13.2% drop compared to the previous period.
On the import front, Paraguay’s purchases totaled approximately $8 billion, with China being the largest supplier, accounting for 33.5% or $2.59 billion of these imports. Despite the lack of formal diplomatic relations, China remains a crucial source of cell phones, data processing equipment, automobile parts, and tires. Brazil is the second-largest supplier, providing 23.7% of Paraguay’s imports, valued at $1.83 billion, including fertilizers, malt beer, tractors, and heavy trucks. The United States ranks third, supplying 7.3% of imports—$567.3 million worth of diesel oil, mineral fertilizers, and transport vehicles.
In a related note, Argentina’s recent drought-induced challenges with soybean crops have led it to source beans from Paraguay, underscoring Paraguay’s crucial role in the global soybean supply chain. Additionally, Paraguay’s open economy continues to facilitate trade with Mercosur partners, offering a diverse range of imported goods to meet regional demands amidst import restrictions in neighboring countries.
