(WIPO code: PY) (latest review October 2023)
by BERKEMEYER, Attorneys and Counselors, Asunción
Paraguay
General Information
Area
406,752 sq. km.
Population
7.4 million (2023).
Capital
Asunción.
Language
Spanish.
Currency
Guaraní.
Agricultural production
18%. The principal crops in order of production are: soybeans, sugar cane, corn, manioc, wheat, citrus fruits, rice, sunflower, sorghum, and canola.
Cattle-raising: 5% estimated (12,305,400 heads in existence in 2010).
Industrial production
17%. Industrial production is for the most part limited to items for local consumption. However, the circumstances are favorable for an unprecedented industrial production increase. The main industries are: beef and pork processing, textiles, cement, essential oils, tanning, vegetable oils, wines, sugar, rum, guaiac wood oil, flour, cigars, cigarettes, beer, soft drinks, soap, ice, shoes, candies, bricks, safety matches, alcohol, chemical products, machinery, paper, leather, shoes, sugar and timber.
Services production
60%: trade and finance 18%, general government 7%.
General Remarks
The Republic of Paraguay is a land-locked country situated in the heart of South America. Bordering countries are Argentina, Brazil and Bolivia.
The political and economic stability, within a frame of free trade, has opened at present great prospects. Although the government’s policy has not been defined on some issues yet, in Paraguay the government’s agencies and the private sector have recognized the necessity for consolidating democracy, economic freedom (free market, free trade and free enterprise) and private initiative, as essential elements to initiate economic and social development.
On March 26, 1991, Paraguay, Argentina, Brazil and Uruguay signed a common market agreement, called Mercosur.
A policy aiming to increase investments and exports is being implemented with adequate financing, tax incentives and restricted and low public expenditure through the privatization of some State-owned enterprises and initiatives of public private partnerships.