MercoPress. South Atlantic News Agency

Paraguay experiences record foreign trade in the first half of 2024

Identifying sales by product category, primary goods exports, soy and wheat, totaled US$ 2.48 billion in six months, up 4.0% from the same period last year

Paraguay exports marked a record sum in the first six months of 2024, having totaled, US$ 8,57 billion, the highest in the last five years and also a maximum diversification of markets in 136 different countries. Stats were supplied in a draft paper on foreign trade from the Paraguayan central bank.

Identifying sales by product category, primary goods exports totaled US$ 2.48 billion in six months, up 4.0% from the same period last year, with soy and wheat the most common produce exported in this category. Manufactured products of agricultural origin (MOA) increased by 1.8% from half 2023 to US$ 2.02 billion. Exports of manufactured goods of industrial origin (MOI) totaled US$ 803.5 million, up 7.9% from June 2023.

One of the most significant increases was recorded in pork shipments, which reached US$14.1 million, up 125.1% from US$ 6.2 million in the same period a year ago. Taiwan was the primary destination for pork, accounting for 91.7% of the total value exported.

It is important to notice that Paraguay has become a tail member of the short list of world exporters of soybeans, and despite being one of the very few countries in the world with full diplomatic relations with Taiwan, a third of its import trade is from China, Beijing.

As to the main markets for Paraguayan exports, the foreign trade report indicates Mercosur, with Argentina leading with 39,2%, totaling US$ 2,33 billion, followed by Brazil with 29,5%, some US$ 1,76 billion, up 25,5% from the previous six months of 2023, Brazilian purchases include rice, soybeans, electricity and maquila produce for light industry in Sao Paulo. Chile figures with 7,6%, US$ 453,5 million, down 13,2%, with main shipments beef and rice.

Meanwhile Paraguayan purchases overseas totaled some US$ 8 billion with the main supplier China, 33,5% or US$ 2,59 billion, despite the fact the two countries do not have diplomatic relations. As mentioned above Paraguay is one of the few countries that still has full relations with the “rebel province” of Taiwan, appealing to Beijing international jargon.

Overall Paraguayan imports in six months increased 10,1% over the same period last year while purchases from China climbed 9,7%. China supplies Paraguay with cell phones, portable data processing machines, automobile parts and tyres. Brazil was the second supplier with a 23,7% share equivalent to US$ 1,83 billion with a 9,7% increase. Main produce sent to Paraguay by Brazil included fertilizers, malt beer, tractors, buses, heavy trucks. USA figures in third place with a 7,3% share, o US$ 567,3 million, and 1,5% higher than the previous six months. USA supplies, diesel oil, mineral fertilizers and transport vehicles.

Finally it must be mentioned that Argentina had two years running the worst soybean crops, (because of drought) and was forced to purchase (and smuggle) the beans from Paraguay to keep its position as world leading exporter of soy oil and soy flour. Likewise Paraguay has always had an open economy (bazaar) facilitating trade (purchase of imported goods, electronics, PCs, spares, imported liquor, perfume, and expensive lady wear) to its avid Mercosur partners consumers facing import bans in their countries.