Paraguay with high growth expectations for foreign trade in the coming years

RIO DE JANEIRO, BRAZIL – Vice-Minister of Economic Relations and Integration, Ambassador Raúl Cano Ricciardi announced that after intense months of negotiations, the extension of the MERCOSUR special regimes was approved, a key step for Paraguay as they extend the terms expiring in 2023 up to 2030.

He explained that States Parties are authorized to make use of the temporary admission regime, the basic instrument of the maquila regime in Paraguay (system in which goods are produced and services are provided for the international market), until the year 2030. In the same decision, he said that the raw material regime will be extended for the same period of time.

“We are very pleased with this result and it is a positive sign for the beginning of Paraguay’s Pro Tempore presidency from December 17, 2021,″ he said.

With these extensions, the country has “a projected trade expectation for the raw material regime of US$855 million in the next 9 years, with an estimated foreign trade of US$6 billion under the maquila regime,” he added.

Likewise, an extension of Paraguay’s national list of exceptions was agreed, with a special differentiated treatment for the country until 2030, through which the tourism regime operations are carried out. “This represents almost US$3 billion in the next 9 years,” he estimated.

“Paraguay also achieved a special differentiated treatment in the regime of origin, where a maximum of 60% will be of importable content and 40% of regional content, which is also a regulatory aspect but will have a strong impact on trade,” he said.

He emphasized that these results were achieved by working jointly with the national section of the GMC, with the Ministries of Industry and Commerce, Finance and Agriculture, led by the National Foreign Ministry.

He also announced that on Thursday, December 16, the 59th Common Market Council (CMC) ordinary meeting will be held and on Friday, December 17, the 50th Summit of Presidents ordinary meeting, with Brazil ending its Pro Tempore presidency and Paraguay assuming it for a period of 6 months.