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U.S. Department of State
Paraguay Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE - PARAGUAY
This Country Commercial Guide (CCG) presents a comprehensive look at
Paraguay's commercial environment through economic, political and market
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. Government agencies.
TABLE OF CONTENTS
Chapter 1. EXECUTIVE SUMMARY
Chapter 2. ECONOMIC TRENDS AND OUTLOOK
Chapter 3. POLITICAL ENVIRONMENT
Chapter 4. MARKETING U.S. PRODUCTS AND SERVICES
Chapter 5. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Chapter 6. TRADE REGULATIONS AND STANDARDS
Chapter 7. INVESTMENT CLIMATE
Chapter 8. TRADE and PROJECT FINANCING
Chapter 9. BUSINESS TRAVEL
A. COUNTRY DATA
B. DOMESTIC ECONOMY
D. INVESTMENT STATISTICS
E. U.S. AND COUNTRY CONTACTS
F. MARKET RESEARCH
G. TRADE EVENT SCHEDULE
Chapter 1. Executive Summary
Paraguay has undergone a dramatic political and economic opening since
1989. The process of democratic and market consolidation is not
complete, however. Interests and structures built up during the
previous, closed system are obstacles to continued reform. The Wasmosy
administration has pledged to push the political and economic reform
process forward, and has some major achievements behind it, such as
judicial reform, including the naming of a new Supreme Court; a macro-
economic stabilization program featuring fiscal austerity which has
weathered a financial crisis; and the successful privatization of the
state airline and plans to sell off four smaller companies by the end of
1995. Even setbacks, such as the refusal of Congress to provide carte
blanche approval for privatizations was met by an effort to involve the
state companies in joint ventures with the private sector.
Important problems remain, however, such as combating corruption (a
recent financial scandal indicated its pervasive nature in both the
pubic and private sector), strengthening protection of intellectual
property and incorporating a booming, informal commercial sector into
the formal economy. Participation in Mercosur requires that the
previously closed Paraguayan system learn to compete with neighboring
aggressive entrepreneurs. The government has recognized the need to
rapidly improve basic infrastructure, the current state of which
detracts from Paraguay's attractiveness for foreign investors. This
challenge, and the ensuing projects in road construction, electrical
generation and distribution and telecommunications needed to surmount
it, provide an excellent opportunity for foreign investors.
Infrastructural projects include the Asuncion Bay reclamation project
(which is backed by the IDB), the $2.4 billion Corpus hydroelectric
project (to be financed by the private sector), and the development of
the Hidrovia waterway linking Brazil, Bolivia, Paraguay, Argentina and
Paraguay's strategic location within Mercosur, and its status as the
region's lowest cost provider of electricity and labor, also offer
important opportunities for industries looking to enter the 200 million
consumer Mercosur market. Industrial zones are already planned near the
Brazilian border to take advantage of these opportunities. The booming
re-export trade to Brazil and Argentina in merchandise from consumer
electronics to heavy machinery, estimated at $5-10 billion a year,
suggests the viability of using Paraguay as an entry point into
Country Commercial Guides are available on CD-ROM or through the
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please use the following address: WWW.STAT-USA.GOV. CCGs can also be
ordered in hard copy or on diskette from the National Technical
Information Service (NTIS).
Chapter 2. Economic Trends and Outlook
Paraguay's opening to international markets after decades of relative
isolation has been codified through its membership in Mercosur (Southern
Common Market). However, overcoming interests and structures created
under the previous closed regime continues to be one of the greatest
challenges to the Government's reform efforts. The Wasmosy
administration continues to publicly affirm its commitment to continued
economic reform and liberalization, and has embarked on a concerted
effort to portray Paraguay as an attractive entry point into MERCOSUR's
market of 200 million consumers. This effort has been marked by the
continuation of investment promotion legislation and policies which
guarantee national treatment of foreign investors as well as full
repatriation of capital. The government privatized the state airline in
1994, and has several privatization efforts as well as concessionary
contracts in the works for joint ventures in telecommunications and
electrical energy production and distribution.
The formal economy is primarily oriented towards services (less then
half of the $ 7 billion GDP derives from agriculture and industry), but
over 300,000 families (over 40 percent of the population) derive their
income from agricultural activity. A large subsistence sector exists
both at the urban and rural level. Agricultural commodities (soybeans,
cotton, lumber and cattle) continue to be the most important export
items, but non-traditional exports are growing rapidly. The formal
economy has grown an average of 3-3.5% range over the past five years,
but population has increased at 3% a year over the same period. An
informal sector, marked by both re-export of imported consumer goods
(electronics, whiskies, perfumes, cigarettes and office equipment) to
neighboring countries as well as thousands of micro-enterprises and
urban street vendors, coexists with the formal economy. There is no
official estimate of the size of the informal sector, but private
estimates place it between $5-10 billion.
The Paraguayan government has stated publicly that it will continue its
economic reform agenda in close coordination with its MERCOSUR partners.
The government has also promised to undertake efforts to formalize the
financial sector, after a financial shock forced the bail-out of the
second and third largest domestic banks. The reform efforts have been
limited, however, and focused strictly at maintaining the stability of
Principal Growth Sectors
New initiatives in energy (including the construction of a new $2.4
billion hydroelectric facility), telecommunications (a $120 million
expansion of the existing system and opening up of the system for
competition), infrastructure (road and dam projects throughout the
country) all offer the possibilities for increased growth, but these
projects are either in initial phases or still in the planning stage.
Paraguay's continued integration into MERCOSUR also offers great
potential for growth, but it is closely linked with the success of
foreign investment promotion. MERCOSUR's effects on the informal
economy could be substantial. However, the biggest contributor to price
differences on re-export items is the varying level of excise taxes
within the countries, not tariffs. Non-traditional exports, such as
finished agricultural products, light manufactures and small consumer
items, are also growing rapidly (up 50% in 1994, with a similar increase
projected for 1995) and their growth could accelerate if planned
assembly operations for the Mercosur market are finalized.
Government Role in the Economy
The Paraguayan government is the single largest economic actor in the
country. It is the largest employer, with almost ten percent of the
work force in either full-time or part-time positions. The government
budget, which was $3.3 billion in 1994, is almost half the size of GDP.
Of this, approximately 80% is used for current expenditures, principally
salaries, 15% for servicing foreign debt, and 5% for public sector
investment. The government's greatest impact in the economy is in its
policy making role, however. The government has followed a stringent
monetary policy aimed at controlling inflation (18.4% in 1994, with a
12-15% target for 1995) and maintaining the value of the local currency,
the Guarani (devaluation versus the dollar has remained at 4-5% during
the last three years). The government has also maintained fiscal
discipline, although the preponderance of personnel and debt-service
costs has led to budget surpluses at the cost of reduced public sector
investment. Efforts to legislate the President's structural reform
program, such as a new Central Bank and privatization laws were
rewritten by Congress, prompting partial vetoes of both laws. Other
draft laws covering telecommunications and banking have languished in
the Congress. The executive, however, has also been slow in presenting
new patent and trademark legislation, although drafts of these laws are
Balance of Payments Situation
Despite a $1.3 billion current account deficit, the Government posted a
$364 million balance of payments surplus in 1995. In addition, foreign
exchange reserves grew by over 40 percent over 1993 levels to $1.07
billion. In 1993, the balance of payments surplus was $89 million,
while a $351 million deficit was registered in 1992. The dramatic
turnaround in the balance of payments situation has come as a result of
short term speculative capital in-flows and informal economic
activities. These increases were registered in errors and omissions
which increased from $478 million in 1993 to $850 million in 1994.
Infrastructure improvement and development is a stated goal of the
Wasmosy administration. There is currently only one international
airport operating in Paraguay ten miles outside Asuncion. It has full
cargo and passenger service capability. Construction of a second
international airport outside Ciudad del Este on the Brazilian border
was completed in 1993, but the airport has yet to open. This airport
lacks commercial cargo handling facilities, however. Paraguay has a
road network of approximately 30,800 kilometers of which 2,800
kilometers is paved. There are also 500 kilometers of gravel roads; the
remainder are unpaved roads which are susceptible to closure from rains
or inclement weather. Over $200 million in new road work is being
financed by regional and multilateral development banks. Paraguay has a
well-developed system of fluvial transport, linking it to the Atlantic
through the Paraguay/Rio de La Plata system. Asuncion is the major port
in the country, but smaller ports exist along the length of the Paraguay
and Parana rivers. Paraguay's railway, with 370 kilometers of rail and
the oldest wood burning steam locomotive still in regular service in
Latin America, is scheduled for privatization in late 1995.
There is an unmet, registered demand for 100,000 phone lines in
Paraguay. In 1995, the government issued a bid for the provision of
80,000 new lines over a five year time period to meet this demand. The
bid is expected to be concluded in September 1995. Paraguay and Brazil
share the world's largest hydroelectric facility, Itaipu, with an
installed capacity of 12,600 MW. A second dam, Yacyreta, is a joint
project with Argentina, which when finished will have an installed
capacity of 4,050 MW. Paraguay is also the lowest cost provider of
electricity in the region, per studies realized by the state investment
promotion office, Proparaguay. Despite such low-cost production, only
57.7% of the country is electrified, the rest of the population,
predominately in rural areas, burn wood or charcoal for energy. Potable
water coverage is 27.7% nationally, with only 1.7% coverage in rural
Chapter 3. Political Environment
NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES
Paraguay and the UNITED STATES have maintained generally good relations,
except for the worst years of the Stroessner dictatorship. U.S.
mediation efforts following the WAR OF THE TRIPLE ALLIANCE (1865-1869)
and the CHACO WAR (1932-1935) ensured Paraguay's independence and
territorial integrity and helped to build a firm affection for the
UNITED STATES among most Paraguayans. The friendship and ties between
the two countries have grown stronger during Paraguay's new era of
Since the February 1989 coup which ended the thirty-five year
dictatorship of PRESIDENT ALFREDO STROESSNER, the UNITED STATES has
strongly supported Paraguay's transition to full democracy and the
consolidation of its democratic institutions. To assist Paraguay in
these efforts and to help modernize Paraguay's economy, the UNITED
STATES has provided development assistance through USAID and the PEACE
CORPS. Additionally, the U.S. funds a small military training program
designed to promote the professionalization the armed forces, and since
1989 has provided material and training to the Paraguayan anti-narcotics
police under the terms of a bilateral agreement. RECENTLY, Paraguay and
the UNITED STATES signed a financial information exchange agreement to
combat drug-related money laundering.
MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
Most observers agree that Paraguay must reform its judicial system
before it will be able to attract significant foreign investment. THE
1992 Constitution mandated the creation of a COUNCIL OF MAGISTRATES to
implement the merit-based selection of a new judiciary. This council
was formed in late 1994, and has begun the process of judicial reform.
A new Supreme Court was confirmed in April 1995. However, the lower
levels of the judiciary continue to function with many judges who were
appointed during the Stroessner era.
Many Paraguayans continue to be dependent on the export of primary
agricultural products, principally cotton and soy. However, the
agricultural sector has been neglected for many years. Now, growing
discontent over this neglect and falling crop prices have politicized
some Paraguayan peasants who have organized to demand new agricultural
policies, price supports, and land reform. A bumper crop and higher
world prices in 1995 has given the government a respite from the
The privatization of state-owned enterprises is a key plank in the
Wasmosy administration's program. The state airline was privatized in
late 1994, and five smaller privatizations are scheduled for late 1995.
Privatization of the largest state companies -- the telephone company
(ANTELCO), the water company (Corposana), the cement company (INC), and
the electric utility (Ande) -- has run into opposition from all
political parties. These objections are based on support for statist
policies, reluctance to lose patronage opportunities, and/or distrust of
the executive's commitment to a transparent privatization process.
One of the government's most daunting tasks is dealing with the informal
economy which many estimate to be at least as large as the formal
economy. The contraband trade distorts normal economic activity,
complicates Paraguay's integration into the Mercosur, and contributes to
a climate of corruption in the country.
BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND
ORIENTATION OF MAJOR POLITICAL PARTIES
Paraguay is a constitutional republic with a strong executive branch and
an increasingly important bicameral legislature. The judicial branch is
independent, but as noted above, its reform and renewal, as provided for
in the 1992 Constitution, have not been completed. Paraguay is divided
into seventeen departments, each with its own elected governor and
departmental board. The exact functions of the departments are yet to
be defined by legislation. The capital city of Asuncion is a separate
administrative area, outside any department. The municipalities have
had elected mayors and city councils since 1991.
The president is head of government and cannot succeed himself.
Paraguay's armed forces consist of an ARMY, NAVY, and AIR FORCE. The
president is commander-in-chief. Certain elements within the armed
forces continue to wield considerable influence. The Colorado party
also holds substantial influence, but the combination of changes brought
about by the political opening after the 1989 coup, the 1992
Constitution and the election of an opposition-controlled Congress in
May 1993, has improved accountability.
The Colorado party, which has been the party of government for nearly
fifty years, was out-polled by the combined opposition vote in the 1993
election. The collards remain divided as the result of a bitterly
disputed December 1992 presidential primary. Its dissident wing, which
responds to defeated primary candidate LUIS MARIA ARGANA, often votes
with the opposition parties in Congress. The liberal party (PLRA) is
the largest opposition group. Led by former presidential candidate
DOMINGO LAINO, the liberals also suffer from factional disputes. The
newest party is NATIONAL ENCOUNTER (PEN), an alliance of smaller parties
and civic organizations whose main appeal is to the urban middle class.
PEN placed third in the 1993 elections. None of the parties is
ideological, and each has elements influenced by populism, 19th century
liberalism, and social democracy.
The next scheduled national elections are in 1996 for mayors and
municipal councils. Paraguayans are scheduled to go to the polls to
choose a new president, Congress and departmental governors in May of
Chapter 4. Marketing U.S. Products and Services
DISTRIBUTION AND SALES CHANNELS
PARAGUAY does not have preferred or special marketing channels.
Imported merchandise can be marketed through subsidiaries of the foreign
companies, importers, distributors, and/or dealers
USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER; Local Attorneys
Foreign firms interested in establishing operations in Paraguay should
hire experienced local attorneys and private sector expertise, including
representatives, to assist them in operating in a complex business
environment. The selection of an appropriate agent/distributor is a
determining factor in success or failure. Many local companies offer
specialized marketing skills to foreign companies interested in the
Franchising operators are beginning to penetrate the market. Several
foreign companies have recently granted franchising rights to local
firms in the areas of fast foods, laundry and clothing.
Few companies have used direct marketing in the past. Nevertheless,
some companies have recently started using this method of reaching
The civil code in force since 1987 does not have provisions for the
establishment of joint ventures. However, the government recognizes
joint ventures formally established through formal legal contracts
between the interested parties. The government is also beginning to
enter into projects using the BOT (build, operate, transfer) methodology
in telecommunications and energy.
Licensing agreements are widely used for the local production of
international brands. Many foreign firms have licensing arrangements
with local companies in the areas of apparel, toiletries and cosmetics,
pharmaceuticals, processed foods, and audio and video recordings.
Trademark infringement, especially of internationally recognized brands,
is a serious and growing problem in Paraguay.
STEPS TO ESTABLISHING AN OFFICE
The government of Paraguay allows the establishment of branches or
subsidiaries of foreign companies. The branch offices should be headed
by a legally authorized representative. The documents listed below,
authenticated by a notary public and by the CONSUL in the country of
origin, must be filed and registered at the civil registry in the
Ministry of Industry and Commerce. Within ten days of completing this
step, the same documents must be registered with the inspection
department of the Vice Ministry of taxation at the Finance Ministry.
--copy of the foreign company's by-laws;
--copy of the minutes of the foreign company's board of directors'
meeting establishing a branch in Paraguay;
--a general power of attorney by the head office to its representative
SELLING FACTORS/TECHNIQUES; SALES SERVICE AND CUSTOMER SUPPORT
The importance of support and follow-up work provided by U.S.
manufacturers to their local representatives cannot be overstated. At
the onset, such support may entail expenditures for advertising and
Spanish language promotional materials. Even after the products have
gained acceptance in the market, U.S. suppliers should maintain close
contact with their local representatives to keep abreast of problems,
and to assess the market jointly. Periodic visits by officials of the
U.S. companies help to reinforce ties with customers in Paraguay.
Competitive prices and quality are important. Generally, producers
offering high quality products at competitive prices succeed quickly in
the market. Most importers prefer to do business with reliable
suppliers. Moreover, importers prefer to buy goods from manufacturers
and suppliers offering attractive financing.
ADVERTISING AND TRADE PROMOTION
The development of advertising has progressed substantially in recent
years. The greater Asuncion area is by far the principal advertising
center, having over one-third of the total population.
The principal media for mass advertising are television and the press.
Other widely used media include radio, billboards, signs, and direct
mail. Most advertisers prefer television and newspapers for their
promotional campaigns. The following newspapers are widely used by
"DIARIO ABC COLOR"
EDITORIAL AZETA S.A.
SR. Aldo Zuccolillo, Director
Casilla Postal 1321
Calle Yegros 745
Ph: 595/21/491160 - Fx: 595/21/493059
EDITORA HOY S.A.
SR. Hugo Aranda (h), Director
Av. Mariscal Lopez 2948
Ph: 595/21/602599, 660383 - Fx: 595/21/603400
"DIARIO ULTIMA HORA"
EDITORIAL EL PAIS S.A.
SR. Demetrio Rojas-Cardoso, Director
Calle Benjamin Constant 658
Ph: 595/21/496261, 496262 - Fx: 595/21/447071
"EL DIARIO NOTICIAS"
EDITORIAL CONTINENTAL S.A.
SR. Nestor Lopez-Moreira, Director
Casilla Postal 3017
Av. Artigas y Brasilia
Ph: 595/21/292721, 292722 - Fx: 595/21/292840
Sra. Diana Dominguez de Rolon, Director
Av. Zavala Cue entre Segunda y Tercera
Fernando de La Mora, Zona Sur
Ph. (595/21) 512520/ Fx: (595/25) 512532
SELLING TO THE GOVERNMENT
Government procurement requires a public bid when the value of the
purchase exceeds $60,000. Foreign manufacturers/suppliers wishing to
participate in government tenders must do so through their duly
registered local representatives, which could be commercial firms in
their line of business, a registered subsidiary of the company
established in Paraguay or legal counsel.
The "buy Paraguay" requirement obligates all government agencies to give
preference to contractors when contracting for the construction of
public works or the supply of services to the public sector. This
translates into a 15% premium for local firms over foreign competitors.
Duly registered subsidiaries of local companies qualify for this
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
Trademark infringement and counterfeiting remain a serious and growing
problem in Paraguay. Owners of patents, trademarks, and copyrighted
materials are advised to register their products with the INDUSTRIAL
PROPERTY OFFICE in the MINISTRY of INDUSTRY and COMMERCE.
Chapter 5. Leading Sectors for U.S. Exports and Investment
Low import duties in Paraguay have encouraged the development of a
flourishing commercial sector engaged in the import of manufactures from
the United States and the Far East and their re-export to neighboring
countries. Although Paraguay has a population of only 4.5 million,
tourist shoppers mainly visiting Ciudad del Este account for a market
many times that size moving an estimated $5-10 billion annually.
U.S. exports to Paraguay have soared as a result of strong demand for
U.S. products by Argentine and Brazilian tourists visiting Ciudad del
Este. They are drawn there primarily to shop for quality goods at much
lower prices than in their home countries. Under its Mercosur (Southern
Common Market) obligations, Paraguay must gradually increase its import
duties to reach the agreed upon Mercosur common external tariff of 14-
20% by 2006. However, the existence of high excise taxes in Brazil and
Argentina, which are not covered in Mercosur, would continue to provide
incentives to the import/re-export activities of Paraguayan merchants.
Major infrastructure projects financed by the multilateral development
banks in road construction, water and sewage and electrical power
generation could offer excellent opportunities for U.S. engineering and
construction service companies. The planned privatization of the state
water and sewage company, CORPOSANA, as well as concessionary
arrangements in both electrical power distribution and
telecommunications also offer important opportunities for foreign
investment. The Asuncion Bay reclamation project, with its mix of
public and private investment, is a very attractive project. The
governments of Argentina and Paraguay have also announced their decision
to go ahead with the $2.4 billion Corpus hydroelectric project by year's
end. An international bid for companies interested in building and
operating the facility is expected by year's end.
Best Prospects for Non-Agricultural Goods and Services.
Given the informal nature of operations in Ciudad del Este, it is
impossible to know the size of the market. The products listed below,
however, continue to be the best-sellers among Brazilian and Argentine
tourists. Our projections are based on interviews with Ciudad del Este
merchants and observed trends in U.S. exports to Paraguay. In rank
order the most attractive export markets, along with projections of
growth for U.S. exports in the sector, are:
Sector U.S. Exports (millions $) 1993 1994 1995* 1996*
Computers and Peripherals (CPT) 62.3 142.6 175 200
Office Machines and Equip (BUS) 83.7 127.7 160 190
Photographic Equipment (PHT) 16.8 66.6 85 100
Communications Equipment (TEL) 36.1 65.5 85 100
Home Audio/Video Equipment (AUV 12.2 52.3 75 90
Toys and Games (TOY) 17.4 24.4 45 68
Cosmetics and Toiletries (COS) 5.8 12.5 20 30
* unofficial estimates.
Chapter 6. TRADE REGULATIONS AND STANDARDS
Tariffs and Import Taxes
Paraguay has the lowest tariffs and import taxes in the Southern cone.
It is a member of the LATIN AMERICAN association (ALADI) and of
Mercosur. Mercosur went into effect January 1995 and tariff was
eliminated between member countries and a common external tariff system
was implemented. There are 399 items on Paraguay's list of exceptions
to Mercosur's common external tariff (CET), including the majority of
goods re-exported to Brazil and Argentina. The tariffs on these goods
must be raised incrementally to reach the level of the CET by 2006. All
products, save for the 399 mentioned above, now have a 14-20 percent
tariff applied to them.
Paraguay has an open market and does not require import licenses, except
in the case of guns and ammunition.
Import and export operations must be processed through authorized banks
and supervised by the CENTRAL BANK of Paraguay. Documents required for
imports are: import statement issued by the bank; commercial invoice
issued by the seller of merchandise; certificate of origin of the
merchandise; Paraguayan consular invoice; and bill of lading.
Paraguay has a system of temporary entry which allows admission of
certain capital goods such as machinery, tools, equipment and vehicles
to carry out public and private construction work. The government also
allows temporary entry of equipment for scientific research,
exhibitions, training or testing, competitive sports, and travelers or
tourists items. Merchandise introduced in the country under the
temporary entry system may be nationalized in Paraguay by complying with
all the normal requirements for imports and paying the duties. The
temporary admission system allows entry of certain goods for subsequent
re-export for a period running up to 12 months, which can be renewed for
another period. The government also allows temporary entry for a ten
day period for merchandise in transit. This system will be phased out
by 2006, per Paraguay's commitments under Mercosur.
LABELING, MARKING REQUIREMENTS
Paraguayan regulations require that the country of origin be designated
on domestic and imported products. Expiration dates are required on
medical products and some consumer goods. Health warnings on hazardous
products, such as cigarettes, must be labeled in a visible place.
There are no import prohibitions.
FREE TRADE ZONES/WAREHOUSES
Paraguay has several free trade zones and warehouses. They are located
in ARGENTINA (BUENOS AIRES, ROSARIO, and SANTA FE); BRAZIL (PARANAGUA
AND SANTOS); CHILE (ANTOFAGASTA); and URUGUAY (MONTEVIDEO, NUEVA
PALMIRA, and Colonia). In early 1995, the government approved a law
permitting free trade zones in Paraguay, but its application is being
held up pending discussions with Paraguay's Mercosur partners.
Chapter 7. Investment Climate
Openness to Foreign Investment
There are no restrictions to foreign investment in Paraguay. National
treatment of foreign investors is guaranteed by law, as is full
repatriation of capital and profits. A number of fiscal incentives
(contained in Law 60/90), including a 95% tax exemption for five years
and duty free import of capital goods, are available to all investors.
Tax laws were simplified in 1991, and corporations now pay only a
corporate earnings tax of 30%. If, however, profits are re-invested,
the tax rate drops to 10%. Paraguay's tax burden is the lowest in South
America, with no personal income tax, limited business taxes and a 10%
value added tax.
The government concluded its first privatization, of the state airline,
LAP, in 1994 after LAP went bankrupt. The airline was bought by an
Ecuadoran firm, Saeta, and began operation in early 1995. Four other
companies (rum, merchant marine, rail and steel) are set for
privatization in 1995 and a French firm, Banque Paribas, won an
international tender to handle their privatization. Attempts to pass
legislation that would allow the privatization of the state electricity,
water and telecommunications companies was vetoed by the President after
the Congress changed key provisions of the executive's draft proposal.
A new arrangement featuring private sector provision of services is
underway in telecommunications, and a concession of the distribution
rights for the Yacyreta hydroelectric facility is also under discussion.
Conversion and Transfer Policies
There are no restrictions on conversion or transfer of foreign currency.
In 1994, the government also permitted foreign currency contracts and
business transactions in foreign currencies, legitimizing a long-
standing practice. Law 60/90 permits the repatriation of capital and
profits and provides guarantees against inconvertibility. Repatriated
profits are subject to a five percent tax on the amount remitted. There
are no controls imposed on foreign exchange transactions, which may be
conducted at commercial banks and exchange houses. The current exchange
rate is 1,975 Guaranies to the Dollar.
Expropriation and Compensation
There is no record of any expropriations. The 1992 Agrarian reform law
does, however, allow for expropriation of private property. The same
law also requires adequate compensation. In 1995, the Congress voted to
expropriate 287,000 hectares of land from a private landowner, but the
case has yet to be resolved. Another increasing problem is land
invasion, with parcels of land being awarded as political bounty by
local politicians. There is one case of a U.S. landowner being subject
to such activity, and the case has yet to be resolved despite favorable
judicial rulings in the landowner's favor.
In December 1991, the Congress approved an Investment Guarantee Law (Law
no. 117/91) establishing equal guarantees for national and foreign
capital. The law allows international arbitration for the resolution of
disputes between foreign investors and the government. This investment
guarantee law also regulates joint-ventures. Paraguay became a member
of the International Center for the Settlement of Investment Disputes on
October 22, 1982 (law 944/82).
The legal system in Paraguay is undergoing much-awaited change. A new
Supreme Court assumed power in 1995, and a Council of Magistrates is
accepting application for almost 700 judgeships in the country. It is
expected that these two essential elements of legal reform will help to
make the legal process more transparent. Both the Commercial and Civil
Codes cover bankruptcy. Under current law, employee claims are first
attended to during a bankruptcy, followed by state claims and finally
There are no performance requirements on investments.
Right to Private Ownership and Establishment
The 1992 Constitution guarantees the right of private ownership
irregardless of the individual's country of origin.
PROTECTION OF PROPERTY RIGHTS
Despite a comprehensive framework of laws, some of them outdated, for
the protection of intellectual property, infringement of trademarks and
piracy is an endemic problem. The executive agency charged with
overseeing the problem, the Ministry of Industry and Commerce, has an
enforcement program, including raids on counterfeiting facilities, but
is constrained by a lack of resources as well as legislation which
limits its powers. The important re-export trade to neighboring
countries has also driven the development of sophisticated networks of
audio, video and software pirates as well as counterfeiters and
trademark infringes. The U.S. Government has ongoing discussions with
the government on issues that must be addressed in order to establish an
adequate intellectual property regime. The Inter-American Development
Bank is also working closely with the Paraguayans on strengthening their
intellectual property regime, as the second $30 million tranche of a $70
million investment sector loan is preconditioned on the introduction
into the congress of modern IPR legislation (in accordance with World
Intellectual Property Organization (WIPO) guidelines). Paraguay's entry
into Mercosur is also important, as the four members of the customs
union are planning to coordinate their IPR policies after the initial
stage, focused on trade harmonization, is completed.
--Patents: The outdated patent law of 1925 established an OFFICE OF
PATENTS AND INVENTIONS and the requirements and procedures for obtaining
patents. Patents are granted for 15 years and may be renewed. In
cooperation with the IDB and WIPO, the Government of Paraguay is
preparing new patent legislation which it expects to present to the
Congress in the third quarter of 1995.
--Trademarks: The illegal appropriation of well-known trademarks
presents a serious problem, despite Paraguay's obligations under the
Paris Convention and the Uruguay Round Accords, which were ratified in
January and November 1994, respectively. The executive has shown
willingness to work with companies in protecting famous trademarks, but
the bureaucratic process of challenging a trademark is cumbersome.
Legal recourse can also be sought through the courts, but the system's
lack of transparency increases the difficulty of the process. Judicial
reform begun in 1995, including the naming of a new Supreme Court,
should improve that situation. The government, in cooperation with the
IDB and WIPO, is preparing new legislation which will bring Paraguay's
trademark practices into accord with its international obligations. The
proposal is to be presented to congress in the third quarter of 1995.
--Copyrights: In 1991, Paraguay became a signatory to the BERN
CONVENTION FOR THE PROTECTION OF LITERARY AND ARTISTIC WORKS. Although
the government has taken measures to fight piracy, widespread production
and trade in pirated recordings, computer software and video cassettes
remains a serious and increasing problem.
REGULATORY SYSTEM: LAWS AND PROCEDURES
The CIVIL CODE and LAW 1,034/83 regulate business and industrial
activities in the country. Under the existing framework, the Ministry
of Industry and Commerce is charged with overall industrial policy
coordination; tax and fiscal policy is handled by the Ministry of
Finance; and the central bank is the principal coordinator of monetary
policy. All businesses need to be registered in three places; the
municipality for a business permit, the ministry of industry and
commerce at the central civil registry; and the finance ministry for tax
purposes. The multiple registration procedure is very bureaucratic and
can take months to complete. Voting board members of companies
incorporated in Paraguay are required to have local residency, which
sometimes acts as an impediment to foreign investment.
While private sector participation is still prohibited in some areas
where state monopolies exist (telecommunications, water/sewage,
electricity generation/distribution, oil importing, cement production),
recent government actions have opened up the possibility of joint
ventures with monopolies in these areas. The sale of state steel, rum,
rail and merchant marine enterprises is expected to begin by late 1995.
The state airline, LAPSA, was already sold in 1994. The government has
made progress in liberalizing prices for certain basic products, such as
sugar and bread. Nevertheless, the government maintains price controls
on a few goods and services, such as gasoline and medicines, which the
government considers necessary for the welfare of the population. The
government also sets the price of public transportation and the minimum
monthly wage. all other areas of commercial activity are open. While
there are no legal prohibitions to fair competition, business practices
developed as a result of decades of non-transparent operations during
the Stroessner regime serve as an obstacle to government efforts to
ensure transparency and foster competition. Competition fostered by
Paraguay's entry into Mercosur should also help to overcome this
CAPITAL MARKETS AND PORTFOLIO INVESTMENT
while government policies are geared to facilitate the free flow of
financial resources in the country, the market has been slow to react to
these policies. There are no discriminatory credit policies and foreign
investors are allowed to raise financial resources locally, yet few have
done so because of the limited size of the local capital market; a stock
exchange was reopened in October 1993, but only banks have taken
advantage of the tax breaks offered to float short term bonds with
guaranteed coupons; international accounting standards and guidelines
issued by the INTERNATIONAL ACCOUNTING STANDARD COMMITTEE and the
INTERNATIONAL FEDERATION OF ACCOUNTANTS have been adopted and are
required for entry into the stock market, but few local companies have
begun to apply them in internal accounting.
In mid-1995, a financial crisis arose which highlighted some of the
distortions in Paraguay's financial market. The second and third
largest local banks were intervened by the Central Bank after a
prolonged liquidity crisis. It was later discovered that these banks
were involved in illegal activities such as embezzlement, misuse of bank
funds, and operating unregistered banking activities. The government
moved immediately to shore up the system, guaranteeing deposits and
later securing these guarantees with commercial bank loan portfolios.
The crisis made it evident that the financial system, with spreads
sometimes higher than 20 points on local currency, had developed
distortions designed to circumvent existing tax and banking laws. The
government has stated publicly that it will work with the Congress and
the banking sector to help correct these distortions. A new Central
Bank law was signed into law by the President in July, 1995, which gives
the Central Bank and Superintendency of Banks greater oversight powers
over the financial system.
The banking system is comprised of 35 commercial banks (four of which
are currently intervened by the Superintendency of Banks) and 64 finance
companies. Four banks are state-owned, 13 are foreign and the remainder
are owned by nationals. The banking system operates mostly on short to
medium term credit (12 months is the usual maximum for commercial
transactions, although private finance of vehicles and homes is
available in longer terms) in both local and foreign currency. Banks
provide credit for commercial ventures, while the finance houses are
used mostly for short term loans for purchase of consumer goods.
Changes in late 1994 and early 1995 permit transactions and contracts in
foreign currency. Current law requires a reserve requirement of 18
percent for banks and 15 percent for finance houses.
There have not been any incidents reported over the past few years
involving politically motivated damage to private or public projects
and/or installations. Since the overthrow of the Stroessner regime in
February 1989, the democratic political system has allowed farmers and
workers to increasingly use their freedom of expression and assembly to
organize protests and strikes, but no private or public interests have
suffered significant damage.
BILATERAL INVESTMENT AGREEMENTS
The following countries have bilateral investment agreements or treaties
Country Type of Agreement or Treaty
ARGENTINA CONVENTION COVERING INVESTMENT AND INDUSTRIAL
HARMONIZATION, OCT. 22, 1968.
BRAZIL TREATY OF FRIENDSHIP AND COOPERATION
Authorizes the creation of binational
CHILE CONVENTION COVERING INVESTMENT AND INDUSTRIAL
HARMONIZATION. SEP. 19, 1974.
URUGUAY CONVENTION COVERING COMMERCIAL INTERCHANGE AND
INDUSTRIAL HARMONIZATION AND INVESTMENTS
FRANCE CONVENTION COVERING THE DEVELOPMENT AND
PROTECTION OF INVESTMENTS. 11/30/79
SOUTH AFRICA CONVENTION ON ECONOMIC COOPERATION AND
INVESTMENT, AUG. 9, 1974
TAIWAN CONVENTION COVERING INVESTMENTS. SEP. 25, 1975.
UNITED ACCORD ON THE PROMOTION AND PROTECTION OF INVESTMENTS,
KINGDOM JUNE 4, 1981. LAW NO. 92/91, which approves and ratifies
the accord signed DEC. 20, 1991.
UNITED STATES AGREEMENT RELATING TO INVESTMENT GUARANTIES (OPIC),
SIGNED OCT. 28, 1955. PARAGUAY, as a member of MERCOSUR,
jointly with ARGENTINA, BRAZIL, and URUGUAY signed the
"ROSE GARDEN AGREEMENT", a framework agreement to
encourage trade and investment. AGREEMENT RELATING TO
INVESTMENT GUARANTIES (OPIC), SIGNED SEP. 24, 1992.
OPIC Investment Insurance Program
The United States and Paraguay signed, September 24, 1992, an INVESTMENT
GUARANTY AGREEMENT which replaced the agreement signed in 1955. In
addition, the government issued a decree on the same day, delegating to
the MINISTRY OF INDUSTRY and COMMERCE the authority to approve cases
under the 1955 agreement. This allowed OPIC to begin full operations in
Paraguay on September 24, 1992.
THE labor force was roughly estimated at 1,597,143 in 1992 and increases
by approximately 50,000 new entrants annually. The government estimated
unemployment in the metropolitan area at 4.5% in 1995, based on the 1992
census. However, private observers put the unemployment rate at 10-12
percent, with another 20-25% under-employment. With a population growth
rate near 3% annually, one of the most serious challenges facing the
government is the creation of enough jobs to meet the increasing labor
demand. The current restrictive monetary policy has succeeded in the
fight against inflation but, at the same time, has reduced economic
activity and worsened the unemployment situation. Historically, excess
labor has emigrated to ARGENTINA and BRAZIL in search of employment.
Since 1991, Argentina's economic recovery has attracted thousands of
Paraguayans to BUENOS AIRES in search of employment, bringing temporary
relief to Paraguay's unemployment problem.
The NATIONAL SERVICE FOR PROFESSIONAL PROMOTION (SNPP) is the government
agency in charge of promoting and developing the technical training of
the labor force. In addition, there are universities, technical schools
and other non-government entities that regularly produce professionals
and trained technicians in several areas and branches of technology.
A GSP program was reinstated in February 1991, after Paraguay's status
as a beneficiary was suspended in 1987 for violation of labor rights
under the Stroessner regime. The restoration of trade benefits was in
recognition of improvements in worker rights under the Rodriguez
government and the promise that the government would pass a new labor
code with internationally accepted protections for labor, which was done
on October 20, 1993.
FOREIGN TRADE ZONES/FREE PORTS
Paraguay does not have any areas designated as duty free import zones
within the country. Trade areas are in operation at the major ports in
Argentina, Brazil and Chile through which much of Paraguay's commerce
passes. A law allowing for the development of free trade zones and
commercial areas was approved within the Mercosur context, but its
application and adaptation to Mercosur regulations limiting the number
of free trade zones in the customs union is still underway.
CAPITAL OUTFLOW POLICY
There are no prohibitions to investment in foreign countries. There is
no data available, however, on holdings or investments abroad. TRADE
sources report that Paraguayans have sizable investments in real estate
in ARGENTINA, BRAZIL, URUGUAY, and the United States with a total
estimated value of several billion dollars. according to the CHAMBER OF
BANKS, Paraguayans maintain about $3.6 billion in savings accounts and
money-market accounts abroad. Full repatriation of capital and profits
by foreign investors is permitted, with a five percent tax issued on the
amount of the transaction.
MAJOR FOREIGN INVESTORS
The major foreign investors in Paraguay during the past three years, by
country of origin, were: BRAZIL, ARGENTINA, FRANCE, UNITED KINGDOM,
ITALY, GERMANY, and the UNITED STATES. Foreign investment laws are
among the most liberal in LATIN AMERICA. Despite the incentives offered
to investors, private investment was sluggish and insufficient to
maintain a sustainable pace of growth. According to government
estimates, Paraguay needs $1 billion dollars annually in new investments
to absorb the approximately 50,000 new entrants that increase the labor
force every year. The current investment level is closer to $200
Chapter 8. Trade and Project Financing
The charter of the CENTRAL BANK of Paraguay and the current banking law
provide the framework for the establishment and operations of banks and
other financial institutions. The CENTRAL BANK is responsible for
administering, managing and directing monetary policy. The bank is also
charged with protecting monetary stability to encourage economic growth
with low inflation. The superintendency of banks, a division of the
CENTRAL BANK, is charged with the supervision of banks and other finance
companies. Paraguay has 35 commercial banks, 64 finance companies, and
30 foreign exchange houses. There are 13 foreign private banks and four
state banks; the rest are local. Citibank is the only U.S. bank present
A recent bank scandal where the second and third largest local banks
underwent a run underscored the fragility of the system. The run was
caused when illegal practices at these banks, including embezzlement by
the managers, misuse of state funds and taking in unregistered deposits
to avoid taxes, could no longer be financed through the capture of legal
deposits. The government stepped in quickly, guaranteeing all deposits.
These guarantees are now secured with the loan portfolios of the
commercial banks. The crisis made clear that the system needed much
more rigorous oversight by the banking superintendent. New banking
legislation, aimed at doing just this, is pending.
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
Paraguay does not have foreign exchange controls. Importers and
exporters can buy and sell foreign exchange freely at commercial banks,
finance companies or exchange houses in Paraguay at the going market
rate. In June, 1995 the rate was 1,975 Guaranies per U.S. dollar.
GENERAL FINANCING AVAILABILITY
Financing, including both import and export financing, is extremely
limited. Local banks provide revolving credit for up to 360 days which
may be renewable. Relatively high nominal and real interest rates
(generating a spread between deposit and loan rate of more than 20
points) present a major obstacle to the availability of medium and long
HOW TO FINANCE EXPORTS/METHOD OF PAYMENT
The government does not have an institution to provide financing for
exporters. Local banks offer credit for up to 180 days which may be
renewable to both importers and exporters. Most importers and exporters
obtain their financing from overseas. Many involved in the re-export
trade buy and sell in foreign currency, and often ship bank notes
through local banks to their U.S. accounts. Letters of credit are then
issued based on these overseas accounts. Moreover, Paraguay does not
have the necessary monetary instruments to raise funds that would allow
lenders to provide medium and long term credit to borrowers.
TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
Local commercial banks provide exporters direct financing, pre-financing
of exports backed by a letter of credit, and discounting of a letter of
credit upon shipment of the merchandise. EXIMBANK provides financing
for U.S. exporters selling goods to Paraguay. EXIMBANK financing can be
obtained through Citibank, the only U.S. bank present in Paraguay.
Local insurance companies offer insurance to importers and exporters.
PROJECT FINANCING AVAILABLE
THE WORLD BANK and the INTERAMERICAN DEVELOPMENT BANK provide project
financing, for basic infrastructure projects, water systems and roads,
included in their portfolios. The current pipeline of approved and
pending loans is close to $1 billion. Infrastructure projects from
regional banks, including road construction are also planned. The
government has also announced plans to have the private sector build and
operate a third hydroelectric project, Corpus, along the Parana river.
BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS
Nearly all banks have correspondent banking arrangements with U.S.
banks primarily in NEW YORK and Miami. There are 35 commercial banks
operating in the country. The largest include: CITIBANK, banco union,
BANCO DE ASUNCION, BANCO UNION, LLOYD'S BANK, BANCO SUDAMERIS PARAGUAY,
and BANCO ALEMAN PARAGUAYO.
CHAPTER 9: BUSINESS TRAVEL
1. BUSINESS CUSTOMS
There are no specific local business customs going beyond the bounds of
normal courtesy. Introduction between persons are rather formal and the
first name is seldom used in business circles. Paraguayans are somewhat
informal in observing prescribed appointment times. For social events,
it is customary to arrive up to 30 minutes late. Persons are normally
addressed by their academic or professional title, e.g. doctor,
engineer, or licenciado, in the case of university graduates.
2. TRAVEL ADVISORY and VISAS
A passport is required. U.S. citizens do not need visas for a three-
month stay. A temporary residence visa can be obtained once in
PARAGUAY. THE temporary residence document is valid for one year and is
renewable. THE PARAGUAYAN identity document can be obtained based on
the temporary residence. Travelers can contact the PARAGUAYAN Embassy
at 2400 MASSACHUSETTS AVE. N.W. Washington, D.C. 20008, phone: (202)
483-6960, or consulates in LOS ANGELES, Miami, or NEW YORK.
The following are national holidays in a calendar year:
JANUARY 1 NEW YEAR
MARCH 1 HEROES' DAY
MARCH/APRIL HOLY THURSDAY
MAY 1 LABOR DAY
MAY 15 INDEPENDENCE DAY
JUNE 12 CHACO ARMISTICE
AUGUST 15 FOUNDING of ASUNCION
DECEMBER 8 VIRGIN of CAACUPE DAY
DECEMBER 25 CHRISTMAS DAY
4. BUSINESS INFRASTRUCTURE
ASUNCION has plenty of taxis. A bus system does exist, but it is
generally inadequate for business purposes. Telecommunications for
national and international services are adequate, with a direct dial
system available, fax and cellular telephony are also available. Hotels
are comfortably furnished and prices are reasonable. Most types of
foods are available at low prices by international standards. Paraguay
has no particular health risks and no special precautions need be taken.
Tap water may be used for drinking purposes in the Asuncion area only.
Sanitary conditions are generally adequate. There are competent
doctors, dentists and specialists in Asuncion.
Appendix A: COUNTRY DATA
--POPULATION: PARAGUAY's population is around 4,300,000, with an annual
growth rate close to 3%. The population density is 11 inhabitants per
square kilometer (28 persons per square mile). About 90 percent of the
population is of HISPANIC-GUARANI descent and 50 percent is less than 18
years old. The majority of the population is concentrated in the
Eastern region of the country and about half of the population is
settled in urban areas.
--RELIGION: The new 1992 Paraguayan Constitution abolished state
official religion and established freedom of worship, cult and ideology.
The majority of Paraguayans are ROMAN CATHOLICS.
--GOVERNMENT SYSTEM: Paraguay is a representative republic. The state
consists of three powers. The executive branch is headed by the
President of the Republic who is elected by direct vote for one five-
year term. The legislative branch consists of two chambers, the Senate
and Chamber of Deputies. Members are elected by popular vote for a
five-year period and are eligible for reelection. THE CHAMBER of
Deputies has 80 members, apportioned among the seventeen departments and
the capital. THE SENATE has 45 members based on national
representation. The judicial branch consists of the SUPREME COURT of
JUSTICE, made up of nine members, courts of appeal and various district
courts. The country is divided into 17 departments governed by
popularly elected governors, and into municipalities governed by around
200 elected mayors.
--LANGUAGES: The official language is Spanish, but the national native
language is GUARANI. ENGLISH, PORTUGUESE and GERMAN are also understood
by the business community in general.
--WORK WEEK: FOR persons over 18 years of age, work times are eight
hours per day / 48 hours per week. Night shifts must not exceed seven
hours per day, or 42 hours per week. Unhealthy work cannot exceed six
hours a day or 36 hours a week. Overtime is permitted for special
reasons, but must not exceed three hours daily, occur more than three
times a week, nor, when added to normal work hours, exceed 56 hours a
week. commercial working hours are 8:00 am to 12:00 noon and 3:00 pm to
7:00 pm. Monday through Friday, and 8:00 am to 12:00 noon Saturdays.
Banking hours are 8:45 am to 4:00 pm Monday through Friday, but the
public is received only up to 12:15 pm.
Appendix B: Domestic Economy
(US$ millions, except where noted)
1994 1995/1/ 1996/1/
--GDP 7,694 8,000 8,296
--GDP growth rate 1995 (pct) 3.5 4.0 3.7
--GDP per capita 1,796 1,810 1,825
--GOVT. spending as pct of GDP 15.2 18.5 20.8
--Inflation (pct) 18.3 15.0 16.0
--Unemployment (pct) 12.0 12.0 12.0
--Foreign exchange reserves 1,038 1,100 800
--Avg. exchange rate (US$1.00) 1,912 1,970 2,300
--Foreign debt 1,249 1,360 1,450
--Debt service ratio (ratio
of principal and interest
payments on foreign debt
to foreign income) -1.6 -1.4 -1.2
--U.S. econ/military assistance 5.3 5.7 32.5
--Appendix C: Trade
(US$ millions, except where noted)
1994 1995/1/ 1996
--Total country exports 816.2 800 na
--Total country imports 2,140.4 2,820 na
--U.S. exports 793.6 1,072 na
--U.S. imports 80.2 84 na
--U.S. share of host country
imports (pct) 37 38 na
Imports of manufactured goods:
--Total (from world) 2,140.4 2,820 na
--From the U.S. 793.6 1,072 na
--U.S. Share of manufactured
imports (pct 37 38 na
--Manufactured goods trade
balance with the U.S. -713.4 -988 na
--Projected avg. annual growth
rate from world thru
1996(pct) 26 32 na
--Projected avg. annual growth
rate from U.S. thru
1996 (pct) 52 35 na
Imports of agricultural goods:
--Total (from world) negligible
--From the U.S. negligible
--U.S. share of agricultural
imports (pct) na
--Agricultural goods trade
balance with the U.S. na
Trade balance with five leading partners in 1994:
--UNITED STATES (-713.4 a)
--ARGENTINA (-192.0 b)
--European Union(+ 14.6 b)
a) U.S. Census Bureau
b) Central Bank of Paraguay
PRINCIPAL U.S. exports in 1994:
--8473 Parts & accessories for machines & units, etc.
--8471 Printer units, data processing machines, etc.
--2402 Cigarettes containing tobacco.
--9010 Apparatus & equipment for photographic labs.
--8520 tape recorder/reproducers, cassette type.
PRINCIPAL U.S. imports in 1994:
--9801 U.S. goods in chapter 88 returned after exported.
--4104 bovine or equine leather.
--4412 Plywood, veneer, panels, & similar laminated wood.
--4402 attaché cases, briefcases, etc.
--1602 meat bovine animal nesoi no veg prep airtit cntr.
Appendix D: Investment
Foreign investment statistics available from official sources reveal
that foreign investment projects approved in 1994 amounted to U.S.
dollars 211 million, broken down as follows:
PROJECTED FOREIGN INVESTMENT 1994
NO. OF US$
Countries projects million
Argentina 24 65
Brazil 22 70
Ecuador 1 36
Italy 4 15
Sweden 1 5
Panama 1 4.8
Colombia 1 4.8
United States 4.0
Other 19 6.9
Note: There are no figures available for the amount actually invested
as a result of the approved projects.
Appendix E: U.S. and Country Contacts
1. U.S. Embassy Trade Related Contacts
U.S. Embassy Asuncion
Mr. Francisco J. Fernandez, Economic and Commercial attache
Ms. Beatriz Schaerer, commercial specialist
APO AA 34036-0001
U S A
Ph: (595/21 /213715 - Fx: 595/21 215079
2. AMCHAM and/or BILATERAL BUSINESS COUNCILs
Camara de COMERCIO PARAGUAYO-AMERICANA
SR. GEORGE MURPHY-LEE, MANAGER
EDIFICIO INTERNACIONAL EL FARO, Piso 4
CALLE GENERAL DIAZ 521
PH & FX: 595/21/442135, 442136
PARAGUAYAN-AMERICAN CHAMBER of COMMERCE of NEW YORK
MR. JOHN TONELLI, PRESIDENT
675 THIRD AVENUE, SUITE 1604
NEW YORK, NY 10017
PH: (212) 432-0734 - FX: (212) 432-0169
3. COUNTRY TRADE or INDUSTRY ASSOCIATIONS in KEY SECTORS
camara de exportadores
SR. LUIS ENRIQUE MORALES GUBETICH, Gerente
CALLE ELIGIO AYALA 1834
ph: 595/21/205740 - fx: 595/21/25369
CAMARA PARAGUAYA de CONSULTORES
SR. Ing. Pedro Cataldo, GERENTE
CASILLA POSTAL 807
EDIFICIO ARASA II, PISO 8, Oficina 807
CALLE B. CONSTANT 973
Ph: 595/21/496128, 441137 - Fx: 595/21/445706
CAMARA Paraguaya de la Informatica y
las Telecomunicaciones (APUDI)
SR. Felix Kemper, Gerente
CASILLA POSTAL 2879
CALLE PASAJE MOLAS 461, PISO 1, OFICINA 6
Ph: 595/21/210369 - Fx:595/21/214005
Camara y Bolsa de COMERCIO
Dr. Ricardo Franco, Gerente
CALLE ESTRELLA 540
Ph: 595/21/493321, 493322 - Fx: 595/21/440817
Centro de Despachantes de Aduana
SR. Octavio Sallustro, Presidente
CALLE GENERAL DIAZ 488, PISO 1, OFICINA 12
Centro de Importadores
Sr. Oscar Yambay, Gerente
CALLE MONTEVIDEO 671
Ph: 595/21/490291 - Fx: 595/21/441295
FEPRINCO--Federacion de la Produccion,
la Industria y el COMERCIO
SRA. Ana Cabrera, GERENTE
CALLE PALMA 751, PISO 3
Ph & Fx: 595/21/446638
UIP--UNION INDUSTRIAL PARAGUAYA
Sra. Maria del Carmen Poletti, Gerente
CASILLA POSTAL 782
CALLE CERRO CORA 1038
Ph: 595/21/212556, 212558 - Fx: 595/21/213360
4. Country Government Offices Relating to Key Sectors and/or
Significant Trade Related Activities, e.g. Customs
Direccion General de Aduanas
Dr. Ruben D. Fadlala, Director General
Calle Colon y Plazoleta del Puerto
ph: 595/21/493688, 493617, 493865 - fx: 595/21/
Ministerio de Industria y Comercio
DR. UBALDO SCAVONE, SENOR MINISTRO
AV. ESPANA 323
Ph: 595/21/204833 - Fx: 595/21/206130
Proparaguay--Direccion de Promocion de
las Exportaciones e Inversiones
ING. FRANCISCO GUTIERREZ, DIRECTOR GENERAL
CASILLA POSTAL 1772
CALLE PADRE CARDOZO 469
Ph: 595/21/208276, 208277 - Fx: 595/21/200425
INTN--INSTITUTO NACIONAL de TECNOLOGIA y NORMALIZACION
DR. ADALBERTO PASTOR, DIRECTOR General
CASILLA POSTAL 967
AV. GENERAL ARTIGAS y GENERAL ROA
ph: 595/21/290266 - fx: 595/21/290873
Ministerio de Agricultura y Ganaderia
DR. ARSENIO VASCONSELLOS, SENOR MINISTRO
EDIF. AYFRA, PISO 1 & 2
CALLE PRESIDENTE FRANCO y AYOLAS
Ph: 595/21/493698,491192 - Fx: 595/21/
Ministerio de OBRAS PUBLICAS y COMUNICACIONES
ING. CARLOS FACETTI, SENOR MINISTRO
CALLE GENERAL DIAZ y ALBERDI
PH: 595/21/443473, 449785 - Fx: 595/21/448956
Ministerio de SALUD PUBLICA y BIENESTAR SOCIAL
PROF. DR. ANDRES VIDOVICH-MORALES, SENOR MINISTRO
AV. PETTIROSSI y BRASIL
Ph: 595/21/204601/3 - Fx: 595/21/207328
5. Country market research firms
Benitez-Codas y Asociados
Dr. Oscar Benitez-Codas, Partner/manager
edificio inter-express, piso 14, oficina 1401
calle herrera 195
ph: 595/21/498120 - fx: 595/21/442504
fretes-ventre y asociados
dr. leonardo Fretes-Ventre, partner/manager
casilla postal 843
calle humaita 994
ph: 595/21/491461, 448730 - fx: 595/21/493517
monitor s.a. consultora
dr. enrique bendana, general manager
calle mariscal estigarribia 1731
ph: 595/21/207391/4 - fx: 595/21/207395
6. country commercial Banks (selected list per net assets)
SR. GUSTAVO MARIN, VICE PRESIDENTE y GERENTE GENERAL
Casilla Postal 1174
Calle Estrella y Chile
Ph: 595/21/494951, 494952 - Fx: 595/21/444820
BANCO UNION S.A.
SR. ISMAEL ARANDA, GERENTE GENERAL
Casilla Postal 726
Av. Mariscal Lopez 3333
ph: 595/21/606450, 607364 - fx: 595/21/606669
BANCO DE ASUNCION S.A.
SR. JOSE ALONSO, DIRECTOR GENERAL
Casilla Postal 623
Calle Palma y 14 de Mayo
Ph: 595/21/493191, 493192 - Fx: 595/21/493190
Banco do brasil s.a.
sr. Anisio Resende de Souza, Gerente General
casilla postal 668
calle nuestra senora de la asuncion y oliva
ph: 595/21/490121/2 - fx: 595/21/448761
LLOYD'S BANK PLC
SR. SCOTT DONALD, GERENTE
Casilla Postal 696
Calle Palma y O'Leary
Ph: 595/21/491090, 491091 - Fx: 595/21/443569
interbanco--banco internacional s.a.
Sr. SERGIO ROBERTO SOUZA-TAVARES, DIRECTOR GENERAL
calle oliva 349
ph: 595/21/494992, 494993 - fx: 595/21/448587
Sr. PAULUS VIRGILIUS JANSEN, gerente general
casilla postal 1180
calle haedo e independencia nacional
ph: 595/21/ 490001/8 - fx: 595/21/491734
BANCO SUDAMERIS PARAGUAY S.A.
SR. Giuseppe DI FRANCESCO, GERENTE GENERAL
Casilla Postal 1043
Calle Independencia Nacional y Cerro Cora
Ph: 595/21/444172/3, 494542 - Fx: 595/21/498187
7. Multilateral development bank offices in country
Interamerican development bank
Mr. Jose Agustin Riveros, Representative
edificio aurora, piso 1 y 2
calle caballero 223
ph: 595/21/492061/6 - fx: 595/21/446537
The World Bank
Mr. Nils Janson, resident representative
edificio city, piso 3
calle estrella 345
ph: 595/21/493755/6 - fx: 450305
APPENDIX F: MARKET RESEARCH
1. AVAILABLE and UPCOMING DOC/ISAS and IMIS:
(ISAS= INDUSTRY SUB SECTOR ANALYSIS): Na.
(IMIS= International market insights): A monthly report, containing
analyses of macro-economic trends is available.
APPENDIX g: TRADE EVENT SCHEDULE
Because trade event schedules may change, firms should consult the
export promotion calendar on the NTDB or contact the post for the latest
The order of listing is: event name; city; type and USG supporting;
--EXPO '95--XIV international livestock, agriculture, industry,
commerce, and services expo/fair. asuncion. International trade fair
at which the u.s. embassy funds a stand in the local paraguayan-american
chamber of commerce pavilion. July 15-30, 1995.
--EXPOCOSTURA/INTERMODA'95. Asuncion. Apparel industry organized trade
exhibition. August 9-12, 1995.
--EXPOMATICA '95. asuncion. data processing industry organized trade
exhibitnal livestock, agriculture, industry, commerce, and ion.
September 19-23, 1995.
--EXPO '96--XV internatioservices expo/fair. asuncion. International
trade fair at which the U.S. embassy funds a stand in the local
paraguayan-american chamber of commerce pavilion. July 15-30, 1996.
--EXPOCOSTURA/INTERMODA'96. Asuncion. Apparel industry organized trade
exhibition. August 9-12, 1995.
--EXPOMATICA'96. asuncion. data processing industry organized trade
exhibition. September 19-23, 1995.
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