MercoPress. South Atlantic News Agency

Paraguay: Maquila Regime yields encouraging results

Interannually, 6,795 workplaces were created under this manufacturing regime, where 100% of its output is for export

In Paraguay, exports under the Maquila regime totaled US$ 388 million as of April 2025, a 13% yoy increase driven mainly by auto parts, textiles, aluminum products, food, and plastics, currently generating 32,712 direct jobs, a 26% growth from the previous year.

Sales went mainly to Southern Common Market (Mercosur) countries, Brazil topping the list (63% of shipments), followed by Argentina (14%). The remaining 21% was split between the United States and Chile (4% each), followed by the Netherlands and Bolivia, each representing 3% of total exports, and Uruguay: 2%.

In addition, 45% of the jobs in the sector were held by women, Paraguay's Vice-Ministry of Industry reported.

The Maquila regime is a system designed to promote industrial development, job creation, and export growth, which allows companies to produce goods or provide services on behalf of a foreign company (the “matrix”) under an international contract, with all production destined for export.

It was established by Law No. 1064 in 1997 and regulated in 2000 by Decree No. 9585. Companies under this regime enjoy preferential conditions, including exemptions on import duties for raw materials and machinery. The mechanism has significantly contributed to Paraguay’s economy, generating thousands of jobs and boosting exports.

However, everything produced under Maquila must be exported, depriving local consumers of goods produced under this scheme.

In April alone, some US$ 92 million worth of manufactured goods were shipped under the regime, with 83% of shipments comprising parts, clothing, aluminum products, foodstuffs, and plastics. Also last month, 174 more jobs were generated compared to March 2025. Interannually, 6,795 workplaces were created, with 73% of them stemming from auto parts, apparel, intangible services, pharmaceutical chemicals, plastics, and their manufacturing sectors.