MercoPress. South Atlantic News Agency

Given Paraguay's trade deficit with China, opportunities such as UAE sought

UAE investors are interested in expanding the Silvio Pettirossi Airport

Paraguay trade experts warned this weekend, citing official data from the Central Bank of Paraguay (BCP) that 37.6% of the country's imports in the first quarter of 2025 stemmed from China, where very little is placed: 0.3% of sales abroad, as a result of Asunción's stance towards Taiwan, which prevents any direct trade with Beijing.

In this scenario, Paraguayan exporters triangulate via Uruguay or Argentina to reach mainland China. The BCP insisted that the trade deficit with China merited thorough reflection by Asunción.

Meanwhile, Paraguayan President Santiago Peña received an invitation from his Union of Arab Emirates colleague, Mohamed bin Zayed Al Nahyan, to continue discussions on investment projects, including airport expansion, infrastructure development, and agreements related to carbon credit markets. Paraguay’s exports to the UAE have increased significantly.

After a meeting between Peña and UAE Ambassador Al-Saghira Wabran Hamad Mubarak Al-Ahbabi, Asunción recalled a 2024 memorandum of understanding for the expansion of the Silvio Pettirossi Airport and other developments. There is also interest in financing a section of the Bioceanic Road Corridor and implementing an agreement signed at COP28 for the international transfer of mitigation outcomes (ITMOs) within the carbon credit market.

The two Presidents held their first bilateral meeting in October 2023 during the United Nations Climate Change Conference in Dubai (COP28). Peña had previously visited the Gulf nation as President-elect just weeks before taking office.

Since the opening of Paraguay’s commercial attaché office in the Middle East in February 2023, Paraguayan exports to the Emirati market have increased by 170%, with products such as yerba mate, haute couture clothing, samu’u trees, cotton seeds, and others.

In addition, Paraguay’s Education Ministry signed a Memorandum of Understanding with Israel to promote educational collaboration, including pedagogy, psychology, and teaching technologies to strengthen Paraguayan institutions through knowledge exchange and partnerships with Israeli experts.

Education Minister Luis Fernando Ramírez thanked Ambassador Amit Mekel for the understanding that “paves the way for us to benefit from the learning, evolution, and development that Israel has achieved in education.”