Economy

US Business Delegation Targets Energy, Data Centres and Mining in Paraguay

Businesses, Economy, Foreign Investment /

US Business Delegation Targets Energy, Data Centres and Mining in Paraguay A US business delegation accompanying Deputy Secretary of State Christopher Landau has opened talks with Paraguayan officials over potential investment in energy, logistics and emerging industries. The visit signals a more structured search for projects, but no binding investment commitments have been announced. Paraguay’s Ministry of Industry and Commerce (MIC) reported on 19 October that more than 15 American business representatives attended a strategic roundtable in Asunción. Organised through investment-promotion agency Rediex, the meeting brought companies together with government officials to identify opportunities and discuss follow-up arrangements. The delegation included representatives of logistics, energy, data centres, mining and agribusiness. Industry and Commerce Minister Marco Riquelme argued that private capital is needed to expand electricity supply, transport infrastructure and industrial capacity. He also identified artificial intelligence and mineral development as longer-term priorities. The energy dimension deserves particular attention. New industrial plants and data centres require reliable electricity, suitable connection infrastructure and clear commercial terms. Paraguay’s substantial hydroelectric resources may be an advantage, but their availability does not, by itself, establish the feasibility of individual projects or guarantee power-delivery capacity at a proposed site. Landau, who led the trade mission during his official visit, said the objective was to build direct relationships between US and Paraguayan businesses and move beyond diplomatic declarations. The initiative follows a wider bilateral agenda covering trade, investment and economic cooperation.   For international operators, the practical opportunities extend beyond headline projects. Engineering contractors, equipment suppliers, industrial-service companies and specialist advisers could benefit if discussions evolve into funded investments. At the same time, regulatory certainty, environmental approvals, land access, energy tariffs and regional logistics will be central to project appraisal. The roundtable should not be read as evidence that any company has committed capital. The MIC did not publish a list of agreed investments, construction timetables or signed contracts. Investors should distinguish commercial interest from project execution. The next meaningful indicators will be feasibility studies, identified counterparties, financing structures and formal agreements. Until then, the visit is best understood as an opening for negotiations rather than a completed investment breakthrough. Sources Ministry of Industry and Commerce (MIC), strategic US–Paraguay investment roundtable, 19 October 2026 MIC, industrialisation and infrastructure priorities discussed with US delegation, 19 October 2026 MIC, remarks by US Deputy Secretary of State Christopher Landau, 19 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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US Medical-Supplies Manufacturer Gentell Plans to More Than Double Paraguay Workforce

Businesses, Economy, Foreign Investment, Mercosur/EU /

US Medical-Supplies Manufacturer Gentell Plans to More Than Double Paraguay Workforce Gentell aims to increase employment at its Pedro Juan Caballero factory from 60 to 150 workers in 2027. The plan highlights a growing export-oriented segment of Paraguayan manufacturing beyond food, textiles and vehicle components. Paraguay’s Ministry of Industry and Commerce (MIC) disclosed the expansion plans on 19 October following a visit to Gentell’s facility in Amambay, near the Brazilian border. The factory began operating approximately 18 months ago and produces specialist healthcare supplies, including wound dressings and ostomy products. Its output reaches customers in Paraguay, Brazil and other international markets. Roberto Schain, chief executive of Gentell Brazil, said the company intends to install additional machinery and increase staffing next year. The business is also considering further investment in 2027 and 2028. The ministry did not disclose a capital budget, a production-capacity target or a binding schedule for the expansion. Unlike investment announcements involving prospective factories, Gentell already operates a manufacturing site in Paraguay. That distinction matters: the immediate opportunity is to scale an existing export operation rather than establish whether the project will be built at all. Gentell’s corporate website identifies manufacturing facilities in six countries: Brazil, Canada, China, New Zealand, Paraguay and the United Kingdom. Its international product range includes advanced and traditional wound-care supplies, as well as skin and personal-care products.   For suppliers and foreign investors, the possible expansion could create demand for production equipment, packaging, quality-control services, maintenance and cross-border logistics. It also illustrates the potential for smaller Paraguayan industrial locations to participate in specialised regional supply chains. Medical supplies are not ordinary consumer goods, however. Regulatory approvals, product classification, labelling, traceability and quality requirements must be checked separately for each destination market. Proximity to Brazil does not remove those obligations or guarantee competitive freight costs. The employment figure of 150 is a company target for 2027, not the current workforce. The next meaningful indicators will be equipment installation, confirmed hiring and sustained export orders. Those developments will show whether Gentell’s planned expansion translates into additional industrial capacity and jobs. Sources Ministry of Industry and Commerce — Gentell expansion plans, 19 October 2026 Gentell — Corporate website and international manufacturing locations Ahendu — Industrial expansion in Pedro Juan Caballero, 20 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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EU-Mercosur Agricultural Safeguards Add a New Layer for Paraguayan Exporters

Businesses, Economy, Foreign Investment, Mercosur/EU /

EU-Mercosur Agricultural Safeguards Add a New Layer for Paraguayan Exporters The EU-Mercosur trade framework is now operational, but preferential access for sensitive agricultural products comes with a safeguard system designed to react quickly to market disruption. For Paraguayan exporters, the practical message is clear: tariff preferences and quotas create opportunity, while EU monitoring, traceability and market conditions remain part of the commercial equation. 19 October 2026 As the EU-Mercosur Interim Trade Agreement moves through its first months of provisional application, agricultural exporters are operating under a parallel EU safeguard regime that can temporarily suspend preferences if imports cause or threaten serious injury to European producers. Regulation (EU) 2026/687 entered into force earlier this year and applies alongside the trade agreement, which has been provisionally applied since 1 May 2026. A faster safeguard mechanism for sensitive agriculture The regulation is designed around products considered politically and economically sensitive in Europe, including beef, poultry, sugar, eggs and other agricultural goods. For these sectors, the EU can open a safeguard investigation when import developments indicate possible serious injury. The agreed framework introduced a 5% monitoring threshold measured against a three-year average for sensitive products, lowering the trigger originally proposed during the legislative process. Once an investigation is opened, the timetable is relatively short. The European Commission is expected to conclude investigations within four months, while provisional measures may be introduced within 21 days in urgent circumstances. The mechanism does not mean that a 5% increase automatically cancels a tariff preference; the Commission must still assess whether the legal conditions for safeguard action are met. But it makes market monitoring much more relevant for exporters. Preferential access remains commercially significant The safeguard rules sit beside the quotas negotiated in the agreement. The EU will allow a 99,000-tonne preferential quota for Mercosur beef, a 180,000-tonne duty-free quota for poultry and a 25,000-tonne pigmeat quota, all subject to their respective phase-in rules. Paraguay also secured a separate 10,000-tonne duty-free sugar quota, while several other products receive preferential treatment under specific schedules. For Paraguayan producers, these quotas can materially improve access to a high-value market, particularly where the ordinary EU tariff is substantial. At the same time, the volumes are deliberately limited. The European Commission notes that the beef quota represents only around 1.5% of EU production and that the poultry quota is roughly 1.3%. The design is therefore intended to expand trade while limiting the risk of sudden pressure on EU farm markets.   Compliance remains as important as the tariff The safeguard framework reinforces a broader point about EU-Mercosur implementation: preferential tariffs do not relax European food-safety or sanitary standards. Paraguayan exporters must still comply with EU import controls, veterinary and phytosanitary requirements, traceability obligations and product-specific certification. The European Commission has also announced increased audits of non-EU countries and EU border control posts during 2026-2027. That distinction matters for investment decisions. A meat processor or poultry producer considering additional capacity for the European market must model not only the tariff saving, but also the cost of certification, traceability, cold-chain infrastructure and the possibility that market safeguards could affect preferences if import conditions change sharply. The agreement improves market access; it does not remove regulatory or market risk. What investors should watch For companies evaluating Paraguay as an export platform, the most relevant indicators will be actual quota utilisation, price movements in the EU, the evolution of Paraguay’s share of Mercosur allocations and any safeguard monitoring initiated by the Commission. The first years of the agreement will also show whether Paraguayan exporters can use their preferential access consistently rather than only episodically. The broader opportunity remains substantial. Paraguay combines competitive agricultural production with new preferential access to Europe, but the value of that access will depend on disciplined compliance and the ability to maintain commercial relationships inside quota limits. For investors, the EU-Mercosur agreement should therefore be treated as a structured market-access framework, not as an unconditional guarantee of duty-free exports. Sources Council of the European Union – EU-Mercosur agricultural safeguard regulation European Parliament – Implementing the bilateral safeguard clause for agricultural products European Commission – Benefits and protection for European farmers under EU-Mercosur European Commission – EU-Mercosur agreement text and provisional application © 2026 Paraguay Business Hub. All rights reserved.

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Paraguay’s Services Exports Set to Grow 20% in 2026, but the Digital Opportunity Remains Largely Untapped

Businesses, Economy, Foreign Investment /

Paraguay’s Services Exports Set to Grow 20% in 2026, but the Digital Opportunity Remains Largely Untapped A new UN regional trade report forecasts another strong year for Paraguay’s services exports. Transport and trade-related activities explain much of the momentum, while the country’s relatively small knowledge-services base points to a different, longer-term opportunity for foreign investors. The Economic Commission for Latin America and the Caribbean (ECLAC) released its 2026 International Trade Outlook on 15 October. It forecasts a 20% increase in the value of Paraguay’s services exports this year, compared with 12% for Mercosur overall and 11% for Latin America and the Caribbean. Paraguay’s projected growth follows a 30% increase in 2025. The distinction matters: the 30% figure is the previous year’s performance, not ECLAC’s forecast for 2026. Exports of services had already risen 20% year on year in the first half of 2026, according to the report. The main drivers are not necessarily software or financial technology. ECLAC links Paraguay’s strong performance primarily to the recovery of transport and logistics services and to business activity connected with trade inside and outside the region. For a landlocked economy, transport services can expand alongside merchandise exports. There is, however, a second story in the report. ECLAC identifies modern services—including information technology, professional and business services, finance and creative activities—as a potential source of higher-value exports. Its comparative figures put Paraguay’s modern-services exports at approximately USD 40 million in 2024, a modest base relative to larger regional providers. That gap may interest international companies considering shared-service centres, software development, specialist back-office operations or other cross-border service activities. Low operating costs alone will not settle an investment decision: multilingual skills, reliable digital infrastructure, legal certainty and access to trained personnel also matter. ECLAC recommends combining export promotion, foreign investment attraction and workforce development. The relevant question for Paraguay is therefore not simply whether services exports continue growing, but whether a larger share eventually comes from activities that are less dependent on freight volumes. Investors should treat the 20% figure as a forecast for total services exports, not evidence of equivalent growth in digital services. Detailed balance-of-payments data and new business announcements will be needed to track that transition. Sources ECLAC, International Trade Outlook for Latin America and the Caribbean 2026, 15 October 2026 (Tables I.9 and I.12; Figure II.8) ECLAC, press release on goods and modern-services exports, 15 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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Paraguay’s Exports Jump 25.7% as Maquila Gains, but Beef Sales Decline

Businesses, Economy, Foreign Investment, Mercosur/EU, Taxation /

Paraguay’s Exports Jump 25.7% as Maquila Gains, but Beef Sales Decline Paraguay exported almost USD 16 billion in the first nine months of 2026, a strong increase driven by soy products and manufacturing under the maquila regime. Yet weaker beef and rice sales show why international investors should look beyond the headline growth rate. 14 October 2026 The Central Bank of Paraguay’s September trade report, published in October, puts cumulative exports at USD 15.97 billion, up 25.7% from the same period of 2025. Imports rose 15.0% to USD 15.26 billion, leaving a trade surplus of USD 712 million. The composition of exports matters. Registered exports accounted for USD 10.22 billion, or 64% of the total. Re-exports reached USD 3.99 billion, representing another 25%, while the remaining category of other exports contributed USD 1.76 billion. These classifications should not be confused: not every dollar recorded in total exports represents goods manufactured domestically. Agricultural products remain influential. Reported soybean-grain exports amounted to USD 3.11 billion, alongside USD 591.7 million in soybean oil and USD 565.3 million in soybean meal. Increased shipments in these categories explain much of the rise in registered exports, underscoring the economy’s continued exposure to harvests and commodity markets. Manufacturing also expanded. Exports under the maquila regime reached USD 1.15 billion, 29% above the comparable 2025 figure. The regime supports production in Paraguay for foreign markets and is increasingly relevant to companies evaluating regional supply chains. Its shipments are part of the reported trade statistics, not an additional amount to be added to total exports.   Performance was not uniform. Exports of beef and bovine offal fell 5.3% in value to USD 1.54 billion, while parboiled rice exports declined 6.6% to USD 262.1 million, according to the Central Bank figures reported by local media. For foreign investors, rising imports alongside export growth suggest activity in both domestic demand and international supply chains. The trade figures, however, do not by themselves establish improvements in margins, production volumes or competitiveness; price movements can also affect values. The principal question for the remainder of 2026 is whether Paraguay can maintain manufacturing growth while broadening its export base beyond a small group of agricultural commodities. Sources Banco Central del Paraguay — September 2026 Foreign Trade Report La Nación — Sector-level export performance, 13 October 2026 InfoNegocios — Trade balance analysis, 14 October 2026 © 2026 Paraguay Business Hub. Original editorial content. General information only; not investment or legal advice.

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Darnel Eyes Paraguay Packaging Plant to Supply Mercosur Markets

Businesses, Economy, Foreign Investment /

Darnel Eyes Paraguay Packaging Plant to Supply Mercosur Markets International packaging manufacturer Darnel Group is considering a production facility in Paraguay as part of a strategy to serve neighbouring Mercosur markets. The proposal could strengthen an industrial supply chain serving food producers and distributors, but the company has not yet announced a final investment decision. Paraguay’s Ministry of Industry and Commerce (MIC) disclosed the discussions on 14 October following a meeting between Minister Marco Riquelme and senior Darnel executives, including chief executive Salvador Miñarro. The company is assessing local production capacity as a means of expanding its regional footprint and improving product competitiveness. According to the MIC, Darnel employs more than 4,500 people, offers approximately 5,000 product lines and serves around 40,000 customers in 50 countries. The company already markets packaging solutions in Paraguay, although its existing commercial presence should not be confused with a confirmed local manufacturing plant. The industrial logic is straightforward. Packaging is an essential input for food processing, beverages, agriculture-related businesses and retail distribution. A facility closer to regional customers could potentially reduce certain transport costs, shorten delivery times and provide greater flexibility in product specification. Those benefits would depend on production scale, sourcing and cross-border logistics. Darnel’s portfolio includes products made from recycled plastics, paper, aluminium and renewable materials. Its own website emphasises recyclable and other lower-impact packaging solutions. Any Paraguayan operation would still need to satisfy applicable environmental, food-contact and product standards in each intended export market.  The prospective project would fit a broader interest in using Paraguay as a manufacturing base for regional supply chains. However, the ministry did not identify a site, investment budget, construction schedule or expected employment level. None of those figures should be treated as established until formally announced. For foreign manufacturers and suppliers, the development is worth following because packaging production can generate demand for industrial equipment, maintenance, transport, raw materials and recycling services. Investors considering comparable projects should assess input availability, energy reliability, labour, logistics and customs conditions; preferential trade or tax treatment cannot be assumed without checking the applicable rules. The next meaningful milestones will be a confirmed location, committed capital and a timetable for construction. For now, this is a credible expression of industrial interest, not an operating project. Sources Ministry of Industry and Commerce (MIC), 14 October 2026 Darnel Group, corporate profile La Nación, 14 October 2026 © 2026 Paraguay Business Hub. Independent editorial content.

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Paraguay’s Iguazú AI City plan puts power supply at the centre of a US$12bn ambition

Businesses, Economy, Foreign Investment /

Paraguay’s Iguazú AI City plan puts power supply at the centre of a US$12bn ambition Araico is pitching a hyperscale computing campus in Yguazú. The headline figure remains a project ambition; near-term execution turns on a signed electricity agreement, staged financing and confirmed customers. NEWS  |  5 OCTOBER 2026 Araico has presented Iguazú AI City, a planned data-centre campus in Yguazú, Alto Paraná, with a headline investment ambition of US$12 billion. The developer’s website describes a 1.3 GW flagship platform; Araico director Alejandro Zuccolillo told ABC Color that the first three phases would require about 280 MW. These are different measures: the larger figure is a long-term campus concept, while 280 MW refers to the initial development plan reported by the company. The proposed rollout is staged. According to the 30 September interview, a first 6 MW phase is targeted for December 2026, followed by two phases of roughly 130 MW each, expected in 2028 and 2029. The company said the first phase would involve US$300 million, while later phases would require substantially more capital. These remain announced targets rather than completed investment or operating capacity. Electricity is the immediate gating issue. Araico said negotiations with the state utility ANDE were advanced and that a long-term supply contract was ready for signature, with an initial price of US$45/MWh and annual adjustment. The report also records that ANDE had said no tariff category existed specifically for this kind of AI data-centre load. As of that reporting, the agreement had not been signed. The proposed price, adjustment formula and timetable should therefore be treated as company statements, not settled tariff terms.     If delivered, the campus could convert Paraguay’s renewable-power advantage into exportable computing services and demand for construction, fibre, cooling, electrical engineering and professional services. For investors, however, the investment headline is only the starting point. The meaningful milestones are a binding power agreement, committed financing for each phase, grid readiness, permits, equipment procurement and customer contracts. Araico identifies global compute demand as its target, but public confirmation of contracted workloads will matter as much as the campus design. The useful follow-up for Paraguay Business Hub is a “what must happen next” brief: distinguish the proposed 1.3 GW platform from the first 280 MW of planned demand, track ANDE’s formal tariff decision, and test each phase against financing and customer evidence. That framing lets readers assess the opportunity without treating a large announced figure as capital already deployed. Sources Araico — Iguazu AI Campus platform (company project description) ABC Color — Araico says ANDE power contract for AI centre is imminent (30 Sep. 2026) Intelligent CIO LATAM — Paraguay’s US$12bn Iguazú AI City targets AI infrastructure (5 Oct. 2026) © Paraguay Business Hub. Original reporting and analysis based on the sources linked above. The project figures and schedules attributed to Araico or its representatives are stated plans and remain subject to execution.

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Costa Group starts pork processing in Paraguay’s Canindeyú

Businesses, Economy, Foreign Investment, International /

Costa Group starts pork processing in Paraguay’s Canindeyú The Spanish company has opened a Katueté plant processing about 200 hogs a day, with larger stages planned. Its strategic test is whether local grain and livestock can support a deeper export-oriented value chain. NEWS  |  5 OCTOBER 2026 Costa Group has begun operating a pork-processing plant in Katueté, in Paraguay’s Canindeyú department. The 25-hectare site is starting at roughly 200 hogs per day, according to the Ministry of Industry and Commerce (MIC). The company’s stated expansion path is 2,000 animals a day, followed by a potential 5,000. The facility currently employs about 200 people; the target communicated by the government is around 600 by year-end. The project’s commercial logic is broader than slaughter capacity. Paraguay’s maize can be converted into animal protein and processed products close to the agricultural base. Costa owner Jordi Costa said the plan includes progressively adding higher-value lines such as ham, salami, cooked sausages, bacon and smoked meats. The company sees scope in both the domestic market and exports. Taiwan was cited as an opportunity, but the announcement does not establish that market access or export approvals have already been secured. For investors, the site is a useful case study in locating processing beyond the capital: proximity to inputs may be attractive, while reliable transport, utilities, workforce development, sanitary approvals and supplier depth remain decisive. The announced capacity figures describe future stages, not current throughput. Their delivery will depend on capital deployment and on expanding the surrounding hog-production ecosystem. The next indicators are measurable: whether hiring approaches the stated target, when plant throughput rises, which processed lines are commissioned, and which export destinations receive formal approval. The story also lends itself to a practical Paraguay Business Hub explainer on the steps behind an agro-industrial investment—from site selection and permits to local sourcing and export readiness. Sources Paraguay Ministry of Industry and Commerce — Costa Group begins pork operations in Canindeyú (2 Oct. 2026) © Paraguay Business Hub. Original editorial content based on the linked source. Future capacity, employment and market access are company or government targets and remain subject to implementation.

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Paraguay Treasury Bond Demand Rises as Local-Currency Yields Fall

Economy /

Paraguay Treasury Bond Demand Rises as Local-Currency Yields Fall Paraguay’s September Treasury auction drew almost four times the amount ultimately placed, while yields on the 2030 and 2035 bonds fell again. The result adds to a broader 2026 trend: deeper demand for guaraní-denominated sovereign debt, longer maturities and a gradual reduction in the State’s exposure to foreign-currency borrowing. 3 October 2026 Paraguay’s domestic bond market delivered another strong signal in September. The Ministry of Economy and Finance (MEF) received total demand of PYG 906 billion in its fourth Treasury bond auction of 2026, while awarding PYG 230.5 billion. Demand was therefore about 3.9 times the amount placed, according to the Ministry. The transaction was carried out through the Asunción Stock Exchange and reopened two existing Treasury series maturing in 2030 and 2035. Yields move lower across the curve The 2030 bond was awarded at a yield of 8.26%, while the 2035 bond cleared at 8.70%. Both levels were below those recorded in the July auction: the 2030 yield fell by 24 basis points and the 2035 yield by 30 basis points. The direction is also clear when compared with June, when equivalent maturities were placed at 8.60% and 9.10%, respectively. For the Treasury, lower yields reduce the cost of funding in domestic currency. For the market, the more important point is the combination of falling yields and strong excess demand. A sovereign yield curve with recurring auctions provides a reference price for banks, pension investors, corporate issuers and other fixed-income instruments. Paraguay’s local capital market remains small by regional standards, but repeated Treasury issuance is gradually creating a broader set of benchmark maturities. Local-currency borrowing is becoming more important The September auction forms part of a deliberate strategy to increase the share of public debt denominated in guaraníes. That strategy has also been taken to international markets. In February 2026, Paraguay issued PYG 6.507 trillion of global bonds – approximately USD 1 billion at the transaction exchange rate – with a 12-year maturity and an 8.5% coupon. The deal attracted 64 international investors and demand equivalent to around 1.5 times the amount offered. The same transaction included a USD 300 million reopening of Paraguay’s 2055 dollar bond, for which demand reached USD 1.89 billion. The two tranches illustrate the country’s dual funding approach: maintaining access to long-dated US-dollar debt while developing a larger investor base for guaraní-denominated instruments. Credit ratings support the market backdrop Paraguay now holds investment-grade ratings from Moody’s and S&P, while Fitch on 30 September reaffirmed its BB+ rating with a positive outlook. Fitch highlighted prudent macroeconomic policies, low public debt and strong external liquidity, while also noting the gradual reduction in the share of public debt denominated in foreign currency. Moody’s had reaffirmed its Baa3 investment-grade rating with a stable outlook in July. Ratings do not determine bond prices on their own. Domestic inflation, the policy rate, liquidity, global interest rates and expectations for the guaraní all affect yields. Foreign investors in local-currency debt also assume exchange-rate risk: an 8% or 9% nominal yield in guaraníes cannot be compared directly with the yield on a US-dollar bond without considering currency movements. A deeper sovereign market can support private issuers The significance of the September auction therefore goes beyond the PYG 230.5 billion raised. A more liquid government bond market can help establish pricing references for corporate debt and improve the infrastructure through which institutional savings are channelled into longer-term securities. The MEF has one more domestic Treasury auction scheduled for 28 October 2026. If demand remains strong and yields continue to stabilise, Paraguay will finish the year with a materially more developed local-currency sovereign curve than it had at the start of 2026. Sources Ministry of Economy and Finance – September 2026 Treasury bond auction results Ministry of Economy and Finance – February 2026 global bond issuance in guaraníes and US dollars Ministry of Economy and Finance – Fitch Ratings review of Paraguay, 30 September 2026 Ministry of Economy and Finance – Bond programme and 2026 domestic auction calendar © 2026 Paraguay Business Hub. All rights reserved.

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Paraguay’s Maquila Exports Pass USD 1 Billion as Manufacturing Accelerates

Businesses, Economy /

Paraguay’s Maquila Exports Pass USD 1 Billion as Manufacturing Accelerates Exports under Paraguay’s Maquila regime reached USD 1.01 billion in the first eight months of 2026, up 26% year on year. The result highlights the growing weight of export-oriented manufacturing in the economy, with auto parts, garments, beverages and aluminium leading the expansion. 3 October 2026 Paraguay’s Maquila industries exported USD 1.01 billion between January and August 2026, compared with USD 801 million in the same period of 2025, according to the Ministry of Industry and Commerce (MIC). August alone generated USD 150 million in shipments, taking the accumulated total above USD 1 billion for the first time at this point in the year. Export growth broadens the manufacturing base Auto parts, garments and textiles, alcoholic beverages and aluminium products accounted for 70% of Maquila exports through August. The export basket also included chemicals and pharmaceuticals, plastics, food products and other manufactured goods, showing a broader industrial base than the traditional image of Paraguay as primarily an agricultural exporter. The sector’s geographic concentration remains high. Around 90% of companies with approved Maquila programmes are located in Alto Paraná, Central, Asunción and Amambay, areas that combine access to labour, logistics and the Brazilian and Argentine markets. Mercosur remains the main destination Mercosur absorbed 77% of Maquila exports during the period, with Brazil and Argentina as the principal destinations. Paraguayan manufacturers also shipped to the Netherlands, the United States, Chile and Uruguay. The figures underline both the importance of regional integration and the still limited diversification of final markets outside South America. Employment and the trade balance are expanding The MIC estimates that the regime now supports close to 40,000 jobs. Seventy per cent of employment is concentrated in garments, auto parts, intangible services, plastics and chemical-pharmaceutical activities. The regime has therefore become relevant not only for exports, but also for formal industrial employment. The trade balance of the sector is also strongly positive. Maquila companies imported USD 529 million of inputs and equipment through August, 17% more than a year earlier, while exports reached USD 1.01 billion. Exports were therefore 91% higher than imports, reflecting the transformation of imported inputs into goods and services for foreign markets. A modernised framework for new investment The expansion is taking place under the updated Maquila framework established by Law 7,547/2025 and regulated in 2026. The regime applies a 1% single tax on Paraguayan value added or the export invoice value, whichever is higher, together with customs and tax benefits for qualifying operations. The new framework also clarifies operating modalities and procedures, giving investors a more defined structure for export manufacturing and services. Maquila already accounted for 69% of Paraguay’s exports of industrial manufactures at the end of 2025. If current growth continues, the regime will remain one of the country’s main channels for converting competitive operating costs, access to Mercosur and imported inputs into higher-value exports. Sources Ministry of Industry and Commerce – Maquila exports grow more than 25% through August 2026 Ministry of Industry and Commerce – Maquila regime and Law 7,547/2025 Ministry of Industry and Commerce – Main changes under the new Maquila Law © 2026 Paraguay Business Hub. All rights reserved.

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