Countries and regions
The relations between the EU and Paraguay are governed by the Framework Cooperation Agreement signed in 1992.
The follow-up of this agreement entails regular meetings of the EU-Paraguay Joint Commission, including on trade matters. This Commission meets normally every 2 years , most recently in April 2012. The Joint Commission should therefore meet again in 2014.
As a member of Mercosur, Paraguay is also a party to the EU-Mercosur Framework Co-operation Agreement signed in 1995, which includes provisions on trade cooperation. Paraguay is also part in the on-going negotiations of an EU-Mercosur Association Agreement.
- Trade and investment between the EU and Paraguay remain relatively modest but has experienced a steady increase over the last few years (34% average increase in EU imports from Paraguay between 2009 and 2013 and 23% average increase of exports to Paraguay in the same period).
- In 2012, the EU was Paraguay's fourth most important trading partner (after Brazil, China and Argentina), accounting for 9.5% of Paraguay’s total trade. EU-Paraguay trade amounted for €1.4 billion in 2012.
- EU imports from Paraguay are dominated by agricultural products (93% of total imports from Paraguay into the EU in 2013).
- EU exports to Paraguay are dominated by manufactured products, in particular machinery and transport equipment (44%) and chemicals (22%) (2013 data).
- The EU is the second largest investor in Paraguay, after the US and just before Brazil. Between 2010 and 2012, EU FDI flows into Paraguay have increased from €11 million to €39 million.
- EU Exports of services to Paraguay have increased between 2010 and 2012 from €96 million to €166 million.
EU-Paraguay "trade in goods" statistics
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EU-Paraguay "trade in services" statistics
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Foreign direct investment
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EU and Paraguay
Paraguay and foreign investment
- Access to other Mercosur markets plays an important role in the attractiveness of Paraguay as a destination of Foreign Direct Investment.
The Framework Trade and Economic Cooperation Agreement is managed through periodic meetings of the EU-Paraguay Joint Cooperation Committee, including one part on trade matters. Several Joint Cooperation Committees have met, with the last meeting in Asuncion in April 2012.
Although EU-Paraguay trade remains limited in absolute numbers, as a member of Mercosur Paraguay is part of an important trading partner for the EU in Latin America. Furthermore, Paraguay accounts for one of the highest GDP growth in the region (13.6% in 2013 and 4.8% in 2014, according to its Central Bank’s forecasts), which makes this country attractive for foreign investment.
The EU attaches importance to the fight against illegal trade in pirated goods in the tri-border area between Paraguay, Argentina and Brazil and considers the respect of intellectual property rights a priority. The EU is cooperating with Paraguay in this respect.
Paraguay enjoys trade preferences with the EU under the Generalised Scheme of Preferences as a GSP+ beneficiary.
Paraguay in Mercosur
Paraguay is as a member of Mercosur
As a member of Mercosur Paraguay is part of the negotiation of a future EU-Mercosur Association Agreement. . This Agreement should provide a boost to regional trade integration among the countries of Mercosur and stimulate new opportunities for trade with the EU by removing tariff and non-tariff barriers to trade.
This agreement will cover, among other issues, trade in goods and services, investment, intellectual property rights (IPR) aspects including protection of geographical indications, government procurement, technical barriers to trade and sanitary and phytosanitary issues.
Trading with Paraguay
- Rules and requirements for trading with Paraguay
- The EU is present on the ground in Paraguay
- Trade relations are part of the EU's overall political and economic relations with Paraguay
- Paraguay is a member of the World Trade Organisation