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Paraguay and Brazil are strategic commercial allies

By Carmen Luisa Ugueto Liendo

According to the portal La Nación, Paraguay and Brazil are strategic trade allies with highly integrated foreign trade.

The Brazilian Ministry of Foreign Affairs highlighted through its website the official visit made by the president-elect, Santiago Peña, to Luiz Inácio Lula da Silva, pointing out that thanks to the bilateral exchange, Brazil is Paraguay’s main ally.

La Nación also disclosed that Paraguay is home to the largest Brazilian community in Latin America, with more than 245,000 people.

Thanks to the bilateral exchange Brazil is Paraguay’s main ally (Photo internet reproduction)

Likewise, it is also the largest source of foreign direct investment in Paraguay, with US$904 million.

In 2022, trade between the two countries reached a record value of US$7.15 billion, an increase of 7.8% compared to the previous year.

Many companies, especially those that have settled recently, have capital from Brazil.

This is the case of the ECB conglomerate of companies with the Omega Green factory project, which will constitute an advanced biofuel plant with an investment of US$800 million.

According to Paraguay-Brazil Chamber of Commerce data, substantial growth is expected, with estimates of US$8 billion, based on the good agricultural harvest.

PARAGUAY AND BRAZIL ARE STRATEGIC TRADE ALLIES

The maquila sector also has good numbers in shipments since, at the end of April, Brazil received 57% of the total outflows, which reached US$334 million, meaning an increase of 7% more than the value recorded in the previous period.

Concerning the Southern Common Market (Mercosur), exports concentrated 73% for the bloc.

During the meeting, other points were reviewed, such as cooperation in the area of Itaipu Binacional, Mercosur, collaboration in common infrastructure projects, and the fight against international crimes.

President Lula da Silva affirmed his willingness to continue developing partnerships to deepen relations and strengthen integration among South American countries.

With information from América Retail

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