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Montevideo, October 2nd 2022 - 21:48 UTC

 

 

Brazilian businessmen eye Paraguayan move to escape inflation

Monday, July 18th 2022 - 08:33 UTC
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The Brazilian missions were interested in replacing Chinese imports with parts built in Paraguay to cut freight costs The Brazilian missions were interested in replacing Chinese imports with parts built in Paraguay to cut freight costs

Businessmen in inflation-torn Brazil are eyeing Paraguay's stabler economy as a suitable destination for future investments, it was reported Sunday in Asunción.

Paraguay-Brazil Chamber of Commerce (CCPB) Chairman Antonio Carlos dos Santos explained that with rising inflation and high interest rates in their home country, a 250-strong business mission from the Federation of Industries of the State of Santa Catarina and Paraná held talks last week with authorities of the Paraguayan Ministry of Industry and Commerce (MIC), during which they discussed future undertakings.

Dos Santos explained that the would-be Brazilian investors were interested in investing in auto parts, textiles, construction materials, metals, and services, as well as food and beverages.

“We know that the issue of inflation and high interest rates, as well as the difficulties in logistics make Brazilian companies less competitive, so we have to look for alternatives,” Dos Santos stressed.

He added that many businessmen had been evaluating a possible move of part of their industrial processes to Paraguay while leaving little more than the assembly phase for Brazil because “they are looking for options of regional suppliers and competitive alternatives of integration of the productive chains; thus, our country is a feasible option when compared to other import prices.”

CCPB Director Fabio Fustagno added that the focus of the missions was “to replace Brazilian imports coming from China,” due to the advantages Paraguay has to offer in terms of freight costs and logistics.

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