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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 Asunción in October 2016.  The Joint Commission should therefore meet again in 2018.

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 picture

  • Trade and investment between the EU and Paraguay remain relatively modest. Between 2015 and 2017, EU imports from Paraguay registered a slight increase, from €1.006bn to 1.153bn. EU exports to Paraguay registered a moderate increase in the same period, from €610 million in 2015 to €682 million in 2017.
  • In 2017, the EU was Paraguay's third most important trading partner (after Brazil and Argentina), accounting for 10% of Paraguay’s total trade. EU-Paraguay trade amounted for €1.798 billion in 2017.
  • EU imports from Paraguay are dominated by agricultural products (87.2% of total imports from Paraguay into the EU in 2017).
  • EU exports to Paraguay are dominated by manufactured products, in particular machinery and transport equipment (42.9%) and chemicals (22.7%) (2017 data).
  • The EU is an important investor in Paraguay. Between 2014 and 2016 , EU FDI stocks in Paraguay increased from €863 million to €1.2 billionEU Exports of services to Paraguay have slightly decreased between 2014 and 2016 from €300 million to €200 million.

EU-Paraguay: Trade in goods

Trade in goods 2017-2019, € billions
Year EU imports EU exports Balance
2017 1.1 0.6 -0.4
2018 0.6 0.7 0.0
2019 0.5 0.6 0.1

EU-Paraguay: Trade in services

Trade in services 2016-2018, € billions
Year EU imports EU exports Balance
2016 0.2 0.2 -0.0
2017 0.1 0.2 0.1
2018 0.1 0.2 0.1

EU-Paraguay: Foreign direct investment

Foreign direct investment 2018, € billions
Year Inward stocks Outward stocks Balance
2018 0.1 1.1 1.0

Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States.

Date of retrieval: 22/04/2020

More statistics on Paraguay

EU and Paraguay

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 October 2016.

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 (4.1 % in 2016, 4.2 in 2017 and projected to be 3 .9% in 2018, according to IMF 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. But the country has been classified by the World Bank as upper-middle income country in 2015, 2016 and 2017. Therefore, Paraguay no longer qualifies for GSP beneficiary country status and will be removed from the list of GSP beneficiary countries, with application from 1 January 2019.

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.

More information on Mercosur

Trading with Paraguay