Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 7/23/2019
  • The Paraguayan government is working to improve the country’s road and electrical transmission / distribution network, much of which is unpaved or in need of upgrades.  Paraguayan firms do not have the capacity to execute all planned projects, creating opportunities for sales of U.S. road construction and engineering services, electrical equipment and installation, road building machinery, project management consulting, and highway operations concessions.
  • Paraguay offers attractive investment incentives for assembly/distribution operations and the lowest factor costs in the region.  There are few restrictions on the types of products that can be produced under the maquila system.  The Mercosur agreement allows products to be marked as “made in Paraguay/Mercosur” with only 40 percent minimum local content and be re-exported to any Mercosur country tax free (in Paraguay, these products pay a one percent tax over the value-added in Paraguay). 
  • Agriculture is the primary driver of the Paraguayan economy.  This industry presents opportunities for animal genetics and other areas of biotechnology, fertilizers, pest control, farm equipment, and processing machinery. 
  • Paraguay’s construction and industrial sectors growth outpaces the capacity of local construction materials production.  Domestic production cannot meet current demand for cement and concrete manufacturing.  The rapid demand for the construction of warehouses for industry and agriculture has surpassed the capacity of local companies that build roofing systems.  Demand also is increasing for higher-quality construction materials currently not locally available.  Projected large infrastructure projects will require purchasing new or used heavy machinery, as well as engineering, project management consulting, and financial services. 

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