MercoPress. South Atlantic News Agency

Paraguay ambitious project to increase exports to UK

Paraguay’s main exports to UK are soybean-meal cakes for animal feed, 76.8% of the total, followed by charcoal (8.2%), veneer (4%), rice (3.4%), and other products

Mercosur partner Paraguay, with a most disfavorable trade balance with UK is planning an ambitious project to enable the country in a few years reach an export bill of some US$ 900 million annually.

The ambitious forecast was revealed in the report «Opportunities UK – Paraguay,» released this month by the Export and Investment Network (Rediex) during an event organized with the Paraguayan-British Chamber of Commerce.

According to data published in the business media, trade between the two countries is uneven. Paraguay exports products worth US$ 51 million annually to the UK, which compares with imports of US$ 141 million.

Paraguayan exports to UK are mainly soy derivatives, beef, rice, and other commodities. More specifically between 2021 and 2023, Paraguay’s main exported soybean-meal cakes for animal feed, representing 76.8% of the total. This was followed by charcoal (8.2%), veneer (4%), rice (3.4%), and other products such as sesame, chia seeds, and frozen beef.

On the other hand, Paraguay main imports from UK included alcoholic beverages (40% of imports), automobiles, phones, physiological serums, and vaccines, among other products.

Federico Silva, director of the Paraguayan-British Chamber of Commerce, highlighted the growth potential for Paraguayan exports to the UK, pointing out that fresh or chilled beef, rice, and soybean oil have significant opportunities to set new export records.

Silva also emphasized expectations that exports of products like charcoal, frozen meat, sesame, chia seeds, and veneer will continue to rise, driven by the strengthening of bilateral relations.

Regarding investments, the UK ranks as the ninth largest investor in Paraguay, with US$ 257 million invested by 2022 in key sectors such as trade, finance, agriculture, and transport. Silva highlighted the reopening of the UK Embassy in Paraguay as a key point for revitalizing the trade relationship between the two countries, opening the door to more significant investment opportunities.

A notable example is the Atome PLC project, which plans to invest approximately US$ 500 million in constructing a green fertilizer plant in Villeta, with a nominal capacity of 145 MW.

“Paraguay is a land of opportunities with much to offer. Important factors such as its macroeconomic stability, geographical location, tax incentives, and others can facilitate the establishment of UK companies intending to invest in Paraguay,” concluded Silva.