MercoPress. South Atlantic News Agency

French companies interested in relocating production to Paraguay

In this scenario, Asunción will host the EU-Paraguay 2025 Investment Forum later this month

French companies have been reported to be exploring the relocation of their production to Paraguay, drawn by its maquila regime and strategic geographic location, according to Benoit Libourel, president of the Paraguayan-French Chamber of Commerce.

“I was talking recently with first-class French companies that are dedicated, for example, to the manufacture of tubular structures for greenhouses. These companies are seriously considering relocating their production to have the Latin American market in Paraguay”, he said.

Libourel also emphasized Paraguay’s energy wealth, economic stability, and favorable conditions for regional market-oriented industries, urging the country to capitalize on this moment to attract European investment. “I try to be an ambassador of the opportunities that Paraguay offers for future French and European entrepreneurs and enterprises”, he insisted in a radio interview.

In addition, he noted Paraguay’s significant export of petitgrain (40% of France’s supply) and the trade imbalance favoring French exports like cosmetics and vehicles.

Paraguay's maquila regime promotes industrial development, job creation, and export growth by allowing companies to produce goods or provide services on behalf of a foreign entity, known as the “matriz”, under an international contract. Everything produced under this regime must be exported.

Established by Law No. 1064 in 1997 and regulated by Decree No. 9585 in 2000, the maquila regime offers tax benefits and competitive advantages to investors. Companies operating under this system can temporarily import raw materials and equipment without paying taxes, as long as they export the final products.

Paraguay's Consejo Nacional de la Industria Maquiladora de Exportación (CNIME) oversees maquila policies, ensuring compliance and facilitating operations. This regime has significantly contributed to Paraguay's economy by attracting foreign investment and generating employment.

In this scenario, Paraguay will host the EU-Paraguay 2025 Investment Forum on June 24–25 in Asunción, organized by the EU's Global Gateway and Paraguay’s Ministry of Industry and Trade through the so-called Rediex (Red de Inversiones y Exportaciones) initiative.

The forum aims to strengthen economic ties, focusing on sustainable forestry production, which could generate over 100,000 jobs, alongside renewable energy, green hydrogen, and sustainable logistics. The event will feature high-level discussions, project visits, and matchmaking to foster investment agreements, leveraging tools like INFONA’s Forest and Land Use Portal to promote transparency and attract responsible European investment.