WT/TPR/S/360 /Rev.1  
29 November  2017 
(17-6487) Page: 1/142 
Trade Policy Review Body   
 
 TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
PARAGUAY  
Revision  
This report, prepared for the Fourth Trade Policy Review of Paraguay, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Paraguay on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addr essed to Mr Angelo Silvy 
(022 739 5249), Ms Martha Lara (022 739 6033) and Ms Katie Waters (022 739 5067).  
 
Document WT/TPR/G/360 contains the policy statement submitted by Paraguay.  
 
 
Note: This report was drafted in Spanish . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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CONTENT S 
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main features of the eco nomy  ................................ ................................ ...................... 13 
1.2   Recent economic developments  ................................ ................................ .................... 14 
1.2.1    Real sector  ................................ ................................ ................................ .............. 14 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 16 
1.2.3    Monetary policy  ................................ ................................ ................................ .......18 
1.2.4    Balance of payments  ................................ ................................ ................................ 20 
1.3   Trade performance: goods and services  ................................ ................................ ........ 21 
1.3.1    Composition of merchandise trade  ................................ ................................ ............. 21 
1.3.2    Geogr aphical distribution of merchandise trade  ................................ ........................... 21 
1.3.3    Trade in services  ................................ ................................ ................................ .....23 
1.4   Foreign direct investment  ................................ ................................ ............................ 24 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  26 
2.1   General framework  ................................ ................................ ................................ .....26 
2.2   Trade policy ob jectives  ................................ ................................ ................................ 29 
2.2.1    General trade objectives  ................................ ................................ ........................... 29 
2.2.2    Electronic commerce  ................................ ................................ ................................ 29 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 30 
2.3.1    WTO ................................ ................................ ................................ ...................... 30 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 31 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 31 
2.4   Investment regime  ................................ ................................ ................................ .....32 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  36 
3.1   Measures directly affecting imports  ................................ ................................ ............... 36 
3.1.1    Customs procedures and trad e facilitation  ................................ ................................ ...36 
3.1.2    Customs valuation  ................................ ................................ ................................ ...41 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 42 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 44 
3.1.4.1    Structure  ................................ ................................ ................................ ............. 44 
3.1.4.2    Tariff bindings  ................................ ................................ ................................ ......47 
3.1.4.3    Tariff concessions  ................................ ................................ ................................ .48 
3.1.4.4    Tariff preferences  ................................ ................................ ................................ ..48 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 49 
3.1.6    Import prohibitions, restrictions and licensing  ................................ ............................. 51 
3.1.7    Anti-dumping, countervailing and safeguard measures  ................................ ................. 55 
3.1.7.1    Anti-dumping and countervailing measures  ................................ .............................. 55 
3.1.7.2    Safeguard measures  ................................ ................................ ............................. 57 
3.2   Measures directly affecting exports  ................................ ................................ ............... 58 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.2.1    Export procedures and requirements  ................................ ................................ .......... 58 
3.2.2    Export taxes, cha rges and levies  ................................ ................................ ................ 58 
3.2.3    Export prohibitions, restrictions and licensing  ................................ .............................. 59 
3.2.4    Export support  ................................ ................................ ................................ ........ 60 
3.2.4.1    Exemption from internal taxes  ................................ ................................ ................ 60 
3.2.4.2    Drawback (refund of customs duty) and temporary admission for inward 
processing procedure  ................................ ................................ ................................ ......... 60 
3.2.4.3    Tax credits for exporters  ................................ ................................ ........................ 61 
3.2.4.4    Free zones  ................................ ................................ ................................ ........... 61 
3.2.4.5    Maquila  ................................ ................................ ................................ ................ 64 
3.2.4.6    Export subsidies  ................................ ................................ ................................ ...65 
3.2.4.7    Export promotion and financing  ................................ ................................ .............. 65 
3.2.4.7.1    Export promotion  ................................ ................................ ............................... 65 
3.2.4.7.2    Export financing, insurance and guarantees  ................................ ........................... 66 
3.3   Measures  affecting production and trade  ................................ ................................ .......67 
3.3.1    Incentives  ................................ ................................ ................................ ............... 67 
3.3.1.1    Overview  ................................ ................................ ................................ ............. 67 
3.3.1.2    Investment incentives  ................................ ................................ ........................... 67 
3.3.1.2.1    Overview  ................................ ................................ ................................ .......... 67 
3.3.1.2.2    Law No.  60/90  ................................ ................................ ................................ ...68 
3.3.1.2.3    Promotion of investment in public infrastructure and the expansion and 
upgrading of goods and services provided by the State  ................................ ........................... 68 
3.3.1.2.4    Investment guarantees, the promotion of job creation, and economic and 
social development  ................................ ................................ ................................ ............ 68 
3.3.1.2.5    Raw materials import regime  ................................ ................................ ............... 69 
3.3.1.2.6    Automotive regime  ................................ ................................ ............................. 69 
3.3.2    Other regimes and benefits  ................................ ................................ ....................... 70 
3.3.3    Standards and other technical requirements  ................................ ............................... 71 
3.3.3.1    Technical regulations  ................................ ................................ ............................. 71 
3.3.3.2    Standards and metrology  ................................ ................................ ....................... 74 
3.3.3.3    Conformity assessment ................................ ................................ .......................... 75 
3.3.3.4    Accreditation  ................................ ................................ ................................ ........ 75 
3.3.4    Sanitary and phytosanitary regulations  ................................ ................................ .......76 
3.3.4.1    Legal and institutional framework  ................................ ................................ ........... 76 
3.3.4.1.1    Activities and products regulated because of sanitary risk  ................................ .......80 
3.3.4.1.2    Notifications to the WTO  ................................ ................................ ..................... 81 
3.3.4.1.3    MERCOSUR standards  ................................ ................................ ......................... 82 
3.3.5   Competition policy and price controls  ................................ ................................ ......... 82 
3.3.5.1    Competition policy  ................................ ................................ ................................ 82 
3.3.5.2    Price controls ................................ ................................ ................................ ........ 84 
3.3.6    State trading, State -owned enterprises and privatization  ................................ .............. 84 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.3.7    Government procurement  ................................ ................................ ......................... 85 
3.3.8    Intellectual property rights  ................................ ................................ ........................ 91 
3.3.8.1    Legal and institutional framework  ................................ ................................ ........... 91 
3.3.8.2    Copyright and  related rights  ................................ ................................ ................... 95 
3.3.8.3    Patents and utility models  ................................ ................................ ...................... 95 
3.3.8.4    Trademarks  ................................ ................................ ................................ .......... 96 
3.3.8.5    Industrial designs  ................................ ................................ ................................ .97 
3.3.8.6    New varieties of plants  ................................ ................................ .......................... 97 
3.3.8.7    Geographical indications and d esignations of origin  ................................ ................... 98 
3.3.8.8    Other intellectual property rights  ................................ ................................ ............ 98 
3.3.8.9    Parallel imports  ................................ ................................ ................................ .....98 
3.3.8.10    Enforcement  ................................ ................................ ................................ .......99 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ ...................  100  
4.1   Agriculture, forestry an d fishing  ................................ ................................ .................  100 
4.1.1    Agriculture and livestock  ................................ ................................ .........................  100 
4.1.1.1    General features  ................................ ................................ ................................ . 100 
4.1.1.2    Production  ................................ ................................ ................................ .........  101 
4.1.1.3    Trade in agricultural products  ................................ ................................ ...............  102 
4.1.1.3.1    Exports  ................................ ................................ ................................ ...........  102 
4.1.1.4    Imports  ................................ ................................ ................................ .............  103 
4.1.1.5    Trade measures and other policy instruments  ................................ .........................  103 
4.1.1.5.1    Border measures  ................................ ................................ ..............................  103 
4.1.1.5.2    Domestic support  ................................ ................................ .............................  104 
4.1.1.5.3    Export subsidies  ................................ ................................ ...............................  105 
4.1.1.5.4    Other measures  ................................ ................................ ...............................  105 
4.1.2    Forestry  ................................ ................................ ................................ ................  105 
4.1.3    Fishing  ................................ ................................ ................................ .................  107 
4.2   Mining and energy  ................................ ................................ ................................ .... 107 
4.2.1    Mining  ................................ ................................ ................................ ..................  107 
4.2.2    Energy sector  ................................ ................................ ................................ ........  108 
4.2.2.1    General features  ................................ ................................ ................................ . 108 
4.2.2.2    Electricity  ................................ ................................ ................................ ...........  110 
4.2.3    Hydrocarbon s and biofuels  ................................ ................................ ......................  112 
4.3   Manufacturing sector  ................................ ................................ ................................  114 
4.4   Services  ................................ ................................ ................................ ..................  115 
4.4.1    Financial services  ................................ ................................ ................................ ... 115 
4.4.1.1    Banking services and other financial institutions  ................................ .....................  115 
4.4.1.1.1    Market structure  ................................ ................................ ..............................  115 
4.4.1.2    Regulatory framework  ................................ ................................ .........................  117 
4.4.1.3    Insurance services  ................................ ................................ ..............................  119 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.4.1.3.1    Market structure  ................................ ................................ ..............................  119 
4.4.1.3.2    Regulatory framework  ................................ ................................ ......................  119 
4.4.1.4    Securities market  ................................ ................................ ................................  121 
4.4.2    Telecommunications  ................................ ................................ ...............................  122 
4.4.3    Transport  ................................ ................................ ................................ ..............  125 
4.4.3.1    General features  ................................ ................................ ................................ . 125 
4.4.3.2    Air transport  ................................ ................................ ................................ ....... 126 
4.4.3.3    River transport  ................................ ................................ ................................ ... 128 
4.4.4   Tourism  ................................ ................................ ................................ ................  130 
4.4.4.1    Characteristics of the sector  ................................ ................................ .................  130 
4.4.4.2    Policies and institutions ................................ ................................ ........................  130 
4.4.4.3    Regulatory framework  ................................ ................................ .........................  131 
4.4.4.4    Domestic support  ................................ ................................ ................................  131 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 132  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main HS sections, 2011 and 2016  ................................ ........... 22 
Chart 1.2 Merchandise trade b y trading partner, 2011 and 2016  ................................ .............. 23 
Chart 3.1 Frequency distribution of MFN tariff rates, 2017  ................................ ....................... 45 
Chart 4.1 Production of the pr incipal agricultural crops, 2011 -2016 ................................ ........  102 
Chart 4.2 Area planted with the principal agricultural crops, 2011 -2016 ................................ .. 102 
Chart 4.3 Cereals exports, 2012 -2016 ................................ ................................ ................  103 
Chart 4.4 Bovine meat exports, 2012 -2016 ................................ ................................ .........  103 
Chart 4.5 Energy imports and exports compared, 2015  ................................ ........................  109 
Chart 4.6 Structure of manufacturing sector GDP, 2015  ................................ ........................  114 
 
TABLES  
 
Table 1.1 Structure of GDP and e mployment, 2011 -2016 ................................ ........................ 13 
Table 1.2 Key macroeconomic indicators, 2011 -2016 ................................ ............................. 14 
Table 1.3 Public finances, central government budge t implementation, 2011 -2016 .................... 18 
Table 1.4 Monetary indicators, 2011 -2016 ................................ ................................ ............ 19 
Table 1.5 Balance of payments, 2011 -2016a ................................ ................................ .......... 20 
Table 1.6 Trade in services, 2011 –2016 ................................ ................................ ................ 24 
Table 1.7 FDI balances by investor country of residence, 2011 -2015 (end of period)  .................. 24 
Table 1.8 FDI balances by national classification of activities (CNAP) category, 2011 -2015 
(end of period)  ................................ ................................ ................................ .................. 25 
Table 2.1 Main trade -related laws and decrees  ................................ ................................ ......27 
Table 2.2 Investment regime framework, 2016  ................................ ................................ ......33 
Table 3.1 Registration requirements for importers and thei r products, 2017  .............................. 37 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 3.2 Institutions incorporated into the single window for imports (VUI)  .............................. 39 
Table 3.3 Percentage of impo rt clearance by selection channel, 2011 -2016 ............................... 40 
Table 3.4 Criteria for preferential origin  ................................ ................................ ................ 42 
Table 3.5 Structure of MFN tariffs , 2010, 2015 and 2017  ................................ ........................ 44 
Table 3.6. Summary analysis of the MFN tariff, 2017  ................................ .............................. 45 
Table 3.7. Paraguay's tariff exceptions to the C ET, 2015  ................................ ......................... 47 
Table 3.8 Summary analysis of preferential tariffs, 2015  ................................ ......................... 49 
Table 3.9 Rates of value added tax, 2017  ................................ ................................ ............. 49 
Table 3.10 Selective consumption tax (ISC), 2017  ................................ ................................ .50 
Table 3.11 Other charges on imports, 2017  ................................ ................................ ........... 51 
Table 3.12 Prohibited imports, 2017  ................................ ................................ ..................... 51 
Table 3.13 Prior import licences, 2017  ................................ ................................ .................. 53 
Table 3.14 Legal framework  for trade defence measures, 2017  ................................ ................ 55 
Table 3.15 Export prohibitions and restrictions, 2017  ................................ ............................. 59 
Table 3.16 Principal legal instrum ents on the free zone regime  ................................ ................ 61 
Table 3.17 Tax concessions under the free zone regime  ................................ .......................... 62 
Table 3.18 Free zone indicators, 2011 -2016 ................................ ................................ .......... 63 
Table 3.19 Tax benefits under the maquila  regime  ................................ ................................ .64 
Table 3.20 Principal technical regulations adopted over the period 20 11 to May  2017 ................. 72 
Table 3.21 Principal regulatory instruments composing Paraguay 's legal framework for 
sanitary and phytosanitary measures  ................................ ................................ ................... 77 
Table 3.22 Laws and decrees on government procurement adopted since 2011  ......................... 86 
Table 3.23 Amounts of contracts awarded by contracting procedure followed, 2010 -2016 ........... 89 
Table 3.24 Contracts awarded by contracting procedure followed, 2010 -2016 ........................... 90 
Table 3.25 Overview of the protection of intellectual proper ty rights in Paraguay, 
February  2017 ................................ ................................ ................................ ................... 92 
Table 4.1 Plans and policy instruments relating to the agricultural sector, 2016  .......................  100 
Table 4. 2 Domestic support, 2010 -2013 and 2015 ................................ ...............................  104 
Table 4.3 Average electricity tariffs, 2010 -2016 ................................ ................................ ... 111 
Table 4.4 Mobile telephone users  by licensee, 2011 -2016 ................................ .....................  123 
Table 4.5 Principal laws and regulations governing the telecommunications sector  ...................  124 
 
BOXES  
 
Box 1.1 Issuance of sovereign bonds in Paraguay  ................................ ................................ ..17 
Box 4.1 National energy sector – principal objectives  ................................ ...........................  110 
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS section, 2011 -2016 ................................ ..................  132 
Table A1. 2 Merchandise imports by HS section, 2011 -2016 ................................ ..................  133 
Table A1. 3 Merchandise exports by trading partner, 2011 -2016 ................................ ............  135 
Table A1. 4 Merchandise imports by trading partner, 2011 -2016................................ ............  136 
 
Table A2. 1 Notifications to the WTO, 1  January  2011 to 31  March  2017 ................................ . 137 
 
Table A3. 1 Taxe s applicable to imported cargo entering by air  ................................ ..............  139 
 
Table A4. 1 Current MAG programmes, 2016  ................................ ................................ ....... 140 
Table A4. 2 Level of openness of commercial air routes by air transport agreement, 2017  ........  141 
 
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  SUMMARY  
1. Since the last review of Paraguay in 2011, the country's economy has performed robustly. 
Real gross domestic product (GDP) grew at an average annual rate of 4.7% between 2011 and 
2016, underpinned by a stable macroeconomic environment which not only favoured growth and 
held down inflation expectations, but also made it easier for Paraguay to access international 
financing at a  moderate cost. The most vigorous economic sectors during 2011 -2016 were 
financial services, construction, general government and the agricultural sector, which is the main 
source of exports. The unemployment rate remained moderate during the review period , generally 
fluctuating between 5% and 6%.  
2. Paraguay continued to strengthen its public finances during the review period by 
implementing prudent fiscal policies and improving its management of taxation. New legislation 
was introduced, establishing rules ai med at ensuring the stability and sustainability of public 
finances. The Fiscal Responsibility Law of 2013 sets annual percentage caps on increases in 
expenditure (year -on-year inflation rate plus 4%) as well as limits on the central government 
deficit, wh ich must not exceed 1.5% of GDP. This policy of fiscal consolidation has led to an 
improvement in tax collection and an increase in the share of tax revenue in GDP. The central 
government posted an operating surplus every year during the 2011 -2016 period, although with 
the exception of 2011, the overall balance continued to show small deficits.  
3. Since 2013, Paraguay has been issuing public debt bonds on the international market with a 
maturity of 10 to 30 years. Up to May  2017, Paraguay had made four issuanc es of sovereign 
bonds. Total central government debt increased as a proportion of GDP from 10.9% in 2011 to 
23.1%, or a total of US$6,294.3  million, in December  2016, although the levels remain moderate. 
Some 76.5% of the total public debt in 2016 was held  externally.  
4. Since May  2011, the Central Bank of Paraguay (BCP) has been implementing an 
inflation -targeting framework under which inflation, measured by the year -on-year variation in the 
Consumer Price Index (CPI), must not exceed a certain limit. That li mit was set at 4% in 2017, 
with a tolerance range of +/ - 2 percentage points. The BPC uses the monetary policy rate (MPR) 
as the instrument for implementing this framework. The MPR acts on interest rates and market 
liquidity. The level of the MPR was 5.5% annually in April  2017. Since the formal implementation 
of the inflation -targeting framework, the BCP has managed to reduce inflation levels and volatility. 
During the period under review, the year -on-year movement of the CPI has been kept within, or 
slightly below, the target range: average inflation from May  2011 to December  2016 stood at 
around 4.2% annually. In 2016, inflation stood at 3.9%.  
5. During the review period, Paraguay's balance of payments current account has been in 
surplus every year with the exception of 2012 and 2015, reflecting the large surpluses on the 
goods trade balance recorded during the period owing to strong soya bean and meat exports. The 
services balance was continually in deficit. Through most of the review period Paraguay added 
substantially to its stock of international reserves. At the end of 2016, the net balance of 
international reserves amounted to US$7,144  million, or the equivalent of 26% of GDP.  
6. Exports and imports of goods and non -factor services amounted to the equivalen t of 83.7% 
of GDP in 2016. That year, recorded merchandise exports reached US$8,494  million (excluding 
re-exports), while recorded imports totalled US$9,753  million. The structure of Paraguay's 
merchandise exports remained stable during 2011 -2016. Agricult ure and food products accounted 
for over 60% of these exports in 2016. Soya beans and soya products (seed cake and oil) were 
the main export product, followed by beef and cereals. The export share of manufactures was 
below 10%; the main export items were c hemical products, leather articles, and textiles and 
clothing. The main imports were machinery and transport equipment, chemical products and 
mineral products. Paraguay's exports to its MERCOSUR partners accounted for more than 45% of 
the total in 2016, co mpared to a little over 40% in 2011. Brazil was the leading destination market 
for Paraguayan exports in 2016, with 35.4% of the total, followed by Argentina (10.7%) and Chile 
(6.1%). In that same year, imports mainly originated from China, Brazil and Arge ntina.  
7. Paraguay is a founding Member of the WTO and plays an active part in the work of the 
Organization, especially in negotiating groups such as the Cairns Group and the G -20 in the realm 
of agriculture. During the negotiation of the Trade Facilitation A greement, Paraguay coordinated WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  the Group of Landlocked Developing Countries. It has bound 100% of its tariffs and accords at 
least MFN treatment to all of its trading partners. Paraguay has never been involved in WTO 
dispute settlement as a complainant or as a respondent, but it has participated as a third party in 
six disputes. During the period under review, Paraguay submitted a number of notifications to the 
various WTO committees. Some notifications are nonetheless still outstanding in fields such as 
domestic support in agriculture, import licensing procedures, customs valuation, subsidies, and 
state trading enterprises.  
8. Paraguay is a member of the Southern Common Market (MERCOSUR). In September  2014, 
it ratified the MERCOSUR Protocol of Montevideo on Tr ade in Services. Through its participation in 
MERCOSUR, Paraguay currently has free trade agreements with the Plurinational State of Bolivia, 
Chile, Cuba, Colombia, Ecuador and the Bolivarian Republic of Venezuela, India, Israel, Mexico, 
Peru and the South ern African Customs Union (SACU). Paraguay is a member of the Latin 
American Integration Association (LAIA), within which it has several partial scope agreements with 
Argentina, Brazil, Chile, Colombia, Ecuador, the Plurinational State of Bolivia, Mexico, the 
Bolivarian Republic of Venezuela, and Uruguay, among other countries.  
9. Paraguay has an investment regime that is open to foreign direct investment. The law 
guarantees national treatment of foreign investors, the only exception being land ownership in 
border areas. Paraguayan laws offer tax rebates to investors and permit the full repatriation of 
capital and profits. During the period under review, Paraguay passed new laws to enhance the 
investment climate: the Law on public -private partnership of 2013, t he Law on public works of 
2013 involving financing or turnkey contracts, and the Investment Protection Law of 2015. The 
Investment Protection Law protects the repatriation of capital and profits, provides guarantees 
against administrative and judicial prac tices that may be deemed discriminatory, and provides for 
fiscal incentives for up to 20 years.  
10. Paraguay ratified the WTO Agreement on Trade Facilitation on 1  March  2016. During the 
review period, it continued its reform process with a view to making custo ms administration more 
efficient and transparent and facilitating trade. These reforms include the adoption of a 
computerized risk management system, the implementation of an approved economic operator 
programme, the introduction of the express consignment  procedure, electronic transmission of air 
manifests, and the digitalization of customs documents. But in spite of these achievements, there 
is still room to improve and simplify the procedures for registration of importers and their products 
and to revise  and streamline the import licensing regime. Since its last review, Paraguay has 
introduced new registration and prior licensing requirements for the importation of products such 
as footwear, salt, articles of iron and steel, cement and mobile telephones, chiefly for reasons of 
quality and security and, in certain cases, for statistical monitoring purposes.  
11. Paraguay's applied tariff in 2017 (HS 2017) comprises 10,226 eight -digit lines and 24 tariff 
levels ranging from 0% to 30%. Paraguay applies only ad val orem rates based on the c.i.f. value 
of the import. The simple average of the applied MFN tariff in 2017 was 8.4%. The average MFN 
tariff applied to agricultural products (WTO definition) was 9.9%, and to non -agricultural products, 
8.2%. The weighted avera ge of applied import duties was 3.2% in 2017. The groups of products 
subject to the highest average tariffs were arms and ammunition (20%), footwear (18.6%), and 
textiles and made -up articles (16.8%). Although Paraguay has applied the MERCOSUR common 
external tariff (CET) since 1995, it also has a large number of exceptions. These correspond to 
around 26% of tariff lines, and are usually subject to rates lower than the CET, so that Paraguay's 
average tariff was some three percentage points lower than the CE T in 2017. The exceptions to 
the CET, listed in the National List of Exceptions (LNE) and in the lists of capital goods (BK) and 
informatics and telecommunications goods (BIT) are authorized until 31  December  2023.  
12. Paraguay has bound all its tariff lines a t rates that range from 10% to 35%. Its national 
tariff has some 80 lines for which the applied rate exceeds the bound rate and 27 lines 
corresponding to chemicals, bound at two levels (15% and 10%) depending on use, for which the 
applied level exceeds the  lower of these levels. However, in the context of this review, the 
Paraguayan authorities have indicated that in all these cases the WTO bound rate is applied. As a 
MERCOSUR member, Paraguay gives duty -free access to the majority of imports from Argentina , 
Brazil and Uruguay. It also grants preferences through agreements concluded in the framework of 
the LAIA to the Plurinational State of Bolivia, Chile, Cuba and Peru, as well as Colombia, Ecuador 
and the Bolivarian Republic of Venezuela. Finally, it grant s preferences to Mexico, Israel, India and 
the SACU countries.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  13. In addition to tariffs, imports are subject to the payment of various charges generally 
applied to the taxable value. These include: a valuation tax for the supply of customs services; a 
consul ar fee for endorsing documents; a tax to finance the Paraguayan Indigenous Institute; a tax 
for the use of the Customs computer system; a variable tax on imports entering by air; and a tax 
on magnet ic and optical media. The value added tax, which applies t o both domestic and imported 
goods, is generally 10%, though there are a few exceptions. A selective consumption tax is levied 
on certain products (tobacco, cigars, alcohol, petroleum -based fuels, etc.), whether imported or 
produced locally, at rates rangi ng from 1% to 38%.  
14. Although Paraguay has a comprehensive legal framework for anti -dumping, countervailing 
and safeguard measures, it did not apply any such measures during the review period.  
15. There are bans or restrictions on the exportation of certain prod ucts, generally for 
environmental or public health reasons, or to comply with international agreements. For certain 
products (for example Petit Grain essential oil and articles of iron and steel), the purpose of the 
restrictions is to increase the domestic  value added or to ensure the supply of raw materials for 
the domestic industry.  
16. For the purpose of promoting exports, Paraguay maintains special customs regimes such as 
the free zones and the maquila. Companies established in the free zones engaged solely  in export 
to third countries pay a flat rate tax (IZF) of 0.5% on gross income earned from their exports. 
These companies may sell finished goods and services in Paraguayan customs territory up to a 
maximum of 10% of their gross sales revenue, without pay ing any additional tax. Imports into the 
customs territory from companies established in the free zones are subject to the tariffs and other 
taxes applied to imports. Companies under the maquila regime pay a single tax of 1% of national 
value added or the value of the invoice, whichever is higher. While the maquila companies must 
export the goods and services resulting from their activities, they can sell up to 10% of the volume 
exported the preceding year on the domestic market subject to prior authorizati on, to the payment 
of domestic taxes on inputs and goods for production imported on a temporary basis, and to 
payment of the income tax on the percentage sold on the domestic market.  
17. Paraguay has a number of different types of incentives that it accords to  both Paraguayan 
and foreign investors in order to promote domestic production, including those granted under Law 
No. 60/90 and amendments thereto. The benefits provided under this Law include exemption from 
the payment of VAT on the purchase of imported a nd Paraguayan capital goods, and exemption 
from payment of duty on imports of capital goods, raw materials and inputs for use in investment 
projects for the manufacture of capital goods. The manufacturing sector is the main beneficiary of 
Law No.  60/90, ac counting for 59% of investments in 2015, followed by the services sector (18%), 
agriculture (16%), and mining and quarrying (7%). There is also a special regime that allows the 
application of a 0% tariff on imports of raw materials and inputs to be used by  agricultural and 
industrial enterprises in their own production processes. The Law establishing the National 
Automotive Policy (2012) provides for tax incentives to encourage the manufacture and/or 
assembly of vehicles, auto parts and spare parts. In 2012 , incentives were also introduced for the 
production, development and/or assembly of high -technology goods in the form of an exemption 
from the payment of duty and a reduction in the VAT on the importation of raw materials, 
components, assemblies, parts an d spare parts. 2013 saw the adoption of the Law on industrial 
parks, providing specific incentives in addition to those determined in Law No.  60/90.  
18. Although Paraguay does not have any centralized agency responsible for drafting technical 
regulations, ther e are certain general guidelines that all institutions must follow. The procedure for 
drafting a technical regulation usually begins with the identification of Paraguay's need to protect a 
legitimate objective. Technical regulations are generally based on international standards. Draft 
regulations must be notified, and a period of 60 to 90 days is given in which to receive comments. 
All technical regulations are published in the Official Journal and on the website of the National 
Information and Notificatio n System (SNIN). Over the period from 2011 to May  2017, Paraguay 
submitted 73 notifications to the WTO Committee on Technical Barriers to Trade.  
19. The period under review saw the adoption of a number of laws and standards relating, 
inter alia, to sanitary an d phytosanitary activities, plant health, dairy products, biodiversity, and 
traceability. Paraguay has notified the WTO that the National Plant and Seed Quality Health 
Service (SENAVE), the National Animal Quality and Health Service (SENACSA) and the Minis try of 
Agriculture and Livestock (MAG) are the national enquiry points for sanitary and phytosanitary WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  matters. Between 2011 and 2017, Paraguay notified only five sanitary and phytosanitary measures 
to the WTO.  
20. Among the important developments during the re view period was the enactment of the Law 
on the protection of competition (Law No.  4.956/13) and its implementing Regulations in 2013, 
and the establishment of the National Competition Commission (CONACOM). Law No.  4.956/13 
regulates practices and agreemen ts which restrict competition, abuse of a dominant position, and 
concentrations. Its scope includes the private sector, central government agencies and the 
decentralized agencies. It incorporates the rule of reason in examining anti -competitive behaviour 
and establishes control regime for mergers and acquisitions as well as procedures for the 
application of penalties. Since its creation, CONACOM has analysed a number of merges and 
concluded other investigations. In the government procurement area, Paraguay has continued to 
modernize its legislative framework in order to make the corresponding procedures more flexible 
and transparent, although it continues to use government procurement as an instrument to 
support domestic production and employment. Paraguay h as not signed the WTO Plurilateral 
Agreement on Government Procurement (GPA), nor is it an observer in the GPA Committee. At the 
regional level, Paraguay is party to the MERCOSUR Protocol on Government Procurement, under 
which it has made commitments on tr ansparency. Paraguay maintains a margin of preference of 
20% for products and services of domestic origin in national government procurement procedures.  
21. Paraguay's intellectual property legislation underwent a number of changes during the 
review period inv olving the decrees implementing the laws governing patents, copyright and 
related rights, and trademarks. The National Intellectual Property Directorate (DINAPI) was also 
created, partly for the purpose of improving the enforcement of intellectual property  rights – 
identified as a problem in Paraguay – through its Directorate -General for Enforcement. This 
Directorate takes preventive and investigative action to punish piracy and counterfeiting, and may 
intervene ex officio  at Customs as well as in commercia l premises or warehouses. Another change 
consisted in the adoption, in 2013, of the Law on geographical indications and designations of 
origin, which provides a term of protection of ten years as from registration, indefinitely renewable 
for further ten ye ar periods.  
22. Agriculture and livestock are important activities for Paraguay, which is the world's 
sixth largest producer and its fourth largest exporter of soya beans and soya by -products. In 
addition, it is an important producer and exporter of bovine mea t. The average MFN tariff applied 
by Paraguay to agricultural products (WTO definition) was 9.9% in 2016. The product categories 
with the highest tariffs are sugar and confectionary (18.8%); alcoholic beverages and tobacco 
(16.5%); and dairy products (14.9 %). Spending on domestic support reached its peak in 2012, 
decreasing thereafter. In 2015, domestic support notified to the WTO totalled US$79.7  million, 
equivalent to barely 0.3% of GDP. All the domestic support notified either fell within the green box 
or was a measure exempt from reduction commitments. Paraguay also provides government 
support to farmers by granting tax concessions, by offering advantageous government 
procurement procedures and by authorizing lines of credit.  
23. Paraguay is one of the world 's leading producers and exporters of hydro -electric energy, 
generated chiefly by the Itaipú and Yacyreta hydro -electric power stations, which Paraguay 
co-owns with Brazil and Argentina. In 2015, 74% of Paraguay's total energy production was 
exported, larg ely to Argentina and Brazil under the bilateral agreements. The State continues to 
play a preponderant role in the management of the energy sector through two State -owned 
enterprises, the National Electricity Authority (ANDE) and Petróleos Paraguayos (PETR OPAR).  
24. To engage in activities in Paraguay, banks, finance companies and other credit institutions 
must obtain express authorization from the Central Bank, and must be set up as public limited 
companies. There are no limits on participation of foreign capi tal or nationality requirements for 
the members of the board of directors or the shareholders, nor are there any restrictions on the 
number of banks that can operate in the country. Branches of foreign banks may transact the 
same business as other banks. T here is no law on financial conglomerates at consolidated level. 
Foreign -owned banks have a significant presence in Paraguay: in February  2017, they held 55.5% 
of bank assets and 52.2% of deposits. For a company to be able to obtain authorization to provid e 
insurance services, it must be legally established in Paraguay as a public limited company and 
exclusively devoted to providing insurance. There are no restrictions on the participation of foreign 
capital, the number of companies or subsidiaries, or the type of insurance services that the foreign 
insurance companies established in the country may offer.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  25. In the telecommunications sector a number of new rules have been approved since the last 
review in connection with the procedure for obtaining licences an d authorizations for the supply of 
Internet access and data transmission services, satellite transmission of occasional signals and 
cable service. The requirements for obtaining licences and authorizations are the same for 
domestic and foreign companies. H owever, to provide or operate a telecommunications service, 
foreign companies must establish domicile in Paraguay or appoint a legal representative in the 
country. Only natural persons of Paraguayan nationality or legal persons established and domiciled 
in Paraguay may hold a radio or television broadcasting licence. Moreover, certain 
telecommunications services continue to be reserved for the State.  
26. River transport plays an important role in Paraguay's economy. The river transport network 
consists of 3,100  km of navigable waterways, mainly along the Paraná and Paraguay rivers. 
Some  80% by volume of Paraguay's import and export trade is transported via the 
Paraguay -Paraná Waterway. National river transport cabotage is reserved for Paraguayan flag 
vessels. To  provide services in waters under Paraguayan jurisdiction, foreign vessels must obtain a 
special government permit and use the services of a pilot of Paraguayan nationality when entering 
or leaving port.  
27. For an airline to be certified and designated by Par aguay, it must be established and have its 
principle place of business in the country. Airlines may be up to 100% foreign -owned. To be 
registered under the Paraguayan flag, aircraft must be owned by natural or legal persons of 
Paraguayan nationality or for eigners domiciled in Paraguay, or have been leased by them.  
 
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Paraguay's economy performed robustly over the period 2011 -2017 (except in 2012). There 
was no significant sectoral recomposition of GDP: the s ervices sector as a whole remained the 
main component of GDP, as illustrated by the fact that in 2016 it accounted for 55.4% of current 
gross value added (excluding indirect taxes and the product of the binational hydroelectric power 
stations). After servi ces, the most important sectors in terms of contribution to gross value added 
are manufacturing (12.9% of value added in 2016), agriculture (11.9%), construction (10.8%) 
and livestock (7.2%). Within services, the most important categories are commerce (15. 6% of 
value added) and general government (13.7%) (Table 1.1). Although there were no significant 
changes in GDP shares, the authorities have stressed that this period was marked by greater 
diversification of activities in services, construction and manufa cturing, with a shift towards 
products with higher value added.  
1.2.  The most vigorous sectors during 2011 -2016 in terms of average real growth were financial 
services (10.1%), construction (7.5%) and general government (6.9%), while the agricultural 
sector as a whole recorded average real growth of 6.6%.  
Table 1.1 Structure of GDP and employment, 2011 -2016  
(% and  billions of current ₲) 
 2011  2012  2013  2014  2015  2016  
Structure of GDP (%)        
Agriculture  15.9  12.0  15.9  13.9  12.1  11.9  
Livestock  6.7   6.0  5.8  6.6  7.1  7.2  
Forestry  1.6  1.8  1.6  1.5  1.6  1.6  
Fisheries  0.1  0.1  0.0  0.0  0.0  0.0  
Mining  0.2  0.2  0.2  0.2  0.2  0.2  
Manufacturing  13.2  13.4  12.6  12.9  13.0  12.9  
Construction  8.1  8.6  8.3  9.0  9.1  10.8  
All services  54.2  58.0  55.6  55.7  56.8  55.4  
 Electricity and water  1.4  1.4  1.3  1.3  1.3  1.2  
 Transport  3.5  3.7  3.5  3.6  3.6  3.3  
 Communications  3.1  3.4  3.4  3.4  3.5  3.4  
 Commerce  18.3  17.2  16.6  16.7  15.9  15.6  
 Finance  5.0  5.8  5.7  5.9  6.5  6.3  
 Housing  1.0  1.1  1.0  1.0  1.0  1.0  
 Business services  2.7  2.8  2.5  2.5  2.6  2.8  
 Hotels and restaurants  1.2  1.3  1.2  1.5  1.6  1.5  
 Household services  6.0  6.3  6.0  6.2  6.3  6.5  
 General government  11.9  15.0  14.4  13.7  14.5  13.7  
Total  100.0  100.0  100.0  100.0  100.0  100.0  
Gross value added  87,083  89,387  104,862  115,501  118,135  127,001  
Product taxes  10,285  10,696  11,540  13,464  13,734  14,811  
GDP at market prices  97,368  100,083 116,403  128,966  131,869  141,813  
Binationals  7,835  8,749  8,749  8,832  10,134  12,228  
GDP including binationals  105,203  108,832  125,152  137,798  142,003  154,040  
GDP growth rate (%) at 
constant prices  4.3 -1.2 14.0 4.7 3.0 4.0 
Agriculture  7.0 -28.3 57.5 2.2 6.5 2.5 
Livestock  -7.1 7.2 9.6 14.4 0.2 4.5 
Forestry  3.0 2.3 -1.2 3.5 7.9 7.0 
Mining  5.3 1.5 8.9 9.5 0.4 8.0 
Manufacturing  -1.6 4.6 7.9 9.5 3.1 3.9 
Construction  1.5 1.0 9.6 13.8 2.5 18.0 
All services  5.9 6.1 8.6 6.0 2.5 1.4 
 Electricity and w ater 8.7 7.0 7.1 8.0 5.0 4.0 
 Transport  2.5 1.1 20.0 7.5 2.4 0.5 
 Communications  15.0 13.1 7.5 3.2 0.8 -0.2 
 Commerce  3.0 -2.6 10.5 5.8 -0.8 1.2 
 Finance  17.3 13.0 9.6 10.6 10.2 0.5 
 Housing  2.2 2.5 2.5 2.5 2.3 3.6 
 Business services  4.0 2.8 2.8 4.4 4.3 9.3 
 Hotels and restaurants  6.0 4.5 8.0 6.9 5.9 -1.0 
 Household services  6.5 2.3 7.8 7.9 4.1 6.1 
 General government  6.0 25.5 4.9 5.0 4.3 -2.5 
Structure of employment by branch of economic activity (%)  
Employed population        WT/TPR/S/360 /Rev.1  • Paraguay  
 
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   2011  2012  2013  2014  2015  2016  
Agriculture, liv estock, hunting and 
fishing  26.4 27.2 23.4 22.8 20.1 n.a. 
Manufacturing, mining and 
quarrying  10.5 10.5 10.0 11.3 12.3 n.a. 
Electricity, gas and water  0.5 0.6 0.7 0.5 0.5 n.a. 
Construction  6.6 5.5 6.5 7.1 6.7 n.a. 
Commerce, restaurants and hotels  25.3 25.5 25.7 26.2 26.6 n.a. 
Transport, storage and 
communications  4.2 4.2 4.2 3.8 3.9 n.a. 
Finance, insurance, real estate  4.5 4.8 5.1 5.5 5.4 n.a. 
Community, social and personal 
services  21.8 21.7 24.3 22.7 24.5 n.a. 
n.a. Not available.  
Source:  Central B ank of Paraguay (BCP).  
1.3.  The importance of the broad agricultural sector (agriculture, livestock, hunting and fishing) in 
terms of employment by branch of economic activity declined during the period under review, 
although it continues to be one of the most important. In contrast, the commerce, restaurants and 
hotels branch has steadily established its leading position, with 26.6% of total employment in 
2015 (last year for which information is available). In that year, other major sources of 
employment were c ommunity, social and personal services (24.5%) and manufacturing, mining 
and quarrying (12.3%). It is worth noting that services as a whole increased in importance 
throughout this period, reaching 60.4% of employment in 2015.  
1.2  Recent economic developments  
1.2.1   Real sector  
1.4.  Paraguay was one of the fastest growing countries of the region during the review period, 
despite the backdrop of international and regional uncertainty. Macroeconomic stability continued 
to underpin growth and hold down inflation expectations, and made it easier for Paraguay to 
access international financing at a moderate cost. The GDP figures for the period reflect the 
contribution of the binational hydroelectric power stations, which was not the case in the previous 
report.  
1.5.  Real GDP grew at an  average annual rate of 4.7% between 2011 and 2016 (Table 1.2). In 
2012, a severe drought and the continuing global crisis caused GDP to shrink by 1.2%. It then 
soared by 14% in 2013, boosted by a sharp upswing in agricultural production. Broadly speaking,  
growth stemmed from the buoyancy of agricultural production and the upturn in domestic 
demand, especially investment, which, after contracting in 2012, grew strongly in 2013 and 2014 
in particular.  
1.6.  In general, private consumption grew more slowly than GDP  during the period, with an 
average annual rate of 3.2% in real terms between 2011 and 2016. Public sector consumption 
grew at an average annual rate of 5.6%, above the GDP growth rate for the period. This high 
growth rate partly reflects the rise in spend ing in 2012, when the Ministry of Finance adopted an 
anticyclical fiscal stance to address the drop in production and stimulate domestic demand, 
resulting in a 24.5% rise in government expenditure over the previous year.1 Thereafter the 
expansion of public  sector consumption slowed significantly and even shrank by 3% in 2016.  
Table 1.2 Key macroeconomic indicators, 2011 -2016  
 2011  2012  2013  2014a 2015a 2016a 
GDP at market prices (billions of current ₲) 97,368  100,083  116,403  128,966  131,869  141,813  
GDP including binational enterprisesb (billions 
of current ₲) 105,203  108,832  125,152  137,798  142,003  154,040  
GDP including binational enterprisesb (millions 
of current US$)  25,149  24,691  28,915  30,657  27,374 27,384  
Real GDP including binational enterprisesb 
(annual percentage change)  4.3 -1.2 14.0 4.7 3.0 4.0 
Per capita GDPc (current US$)  3,952  3,821  4,408  4,605  4,052  3,995  
                                                
1 BCP (2013), Informe de Política Monetaria II 2012 , December  2012. Viewed at: 
https://www.bcp.gov.py/userfiles/files/Informe_Politica_Monetaria_II_2012_quereemplaza.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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   2011  2012  2013  2014a 2015a 2016a 
GDP by type of expenditure (real growth 
rate)        
Total consumption  5.5 4.8 4.5 3.8 1.9 0.7 
 Private consumption  5.6 2.8 4.6 3.7 1.5 1.3 
 Public sector consumption  5.3 21.0 3.5 4.2 4.3 -3.0 
Gross capital formation  10.8 -13.5 20.2 11.0 1.2 2.5 
 Gross fixed capital formation  11.0 -7.7 11.9 8.8 2.2 5.0 
 Changes in inventories  7.5 -110.4  -1,207.2  43.7 -9.4 -30.1 
Exports of goods and services  6.2 -6.7 18.4 4.3 -1.3 3.0 
Imports of goods and services  10.4 -3.5 6.8 5.3 -4.0 -2.5 
Gross Domestic Product  4.3 -1.2 14.0 4.7 3.0 4.0 
Employment        
Open unemployment rated (%) 5.6 4.9 5.0 6.0 5.3 n.a. 
Employed population (million)  3.04 3.24 3.27 3.25 3.31 n.a. 
Agriculture, livestock, hunting and fishing  26.4 27.2 23.4 22.8 20.1 n.a. 
Manufacturing, mining and quarrying  10.5 10.5 10.0 11.3 12.3 n.a. 
Electricity, gas and water  0.5 0.6 0.7 0.5 0.5 n.a. 
Construction  6.6 5.5 6.5 7.1 6.7 n.a. 
Commerce, restaurants and hotels  25.3 25.5 25.7 26.2 26.6 n.a. 
Transport, storage and communications  4.2 4.2 4.2 3.8 3.9 n.a. 
Finance, insurance, real estate  4.5 4.8 5.1 5.5 5.4 n.a. 
Community, so cial and personal services  21.8 21.7 24.3 22.7 24.5 n.a. 
Other economic indicators       n.a. 
Current account balance (% of GDP)  0.8 -1.2 2.1 0.1 -1.0 1.7 
Total public debt (% of GDP)  10.9 14.6 14.4 17.6 19.7 22.4 
Total external debt (US$  million)  2,285  2,241  2,677  3,680  3,993  4,823  
Total external debt (% of GDP)  9.1 9.1 9.3 12.0 14.6 17.6 
Net internati onal reserves (US$  million, 
end of period)  4,984  4,994  5,871  6,891  6,200  7,144  
Population (million)e 6.36 6.46 6.56 6.66 6.76 6.86 
n.a. Not available.  
a Preliminary figures.  
b Paraguay's National Accounts include the production of binational enterprises since the year 2012 
(production of Itaipú since 1985 and Yacyretá since 1994).  
c Includes binational enterprises.  
d Does not include the departments of Boquerón and Alto Paraguay.  
e Estimates and projections based on the 2012 Population and Housing Census.  
Source:  Central Bank of Paraguay and Directorate -General of Statistics, Surveys and Censuses (DGEEC), 
Encuesta Permanente de Hogares  (various years).  
1.7.  The share of exports in GDP varied over the review period, reflecting their dependence on 
external trends and world raw material prices, in particular for soya beans. Although the annual 
growth rate of exports over 2011 -2016 was 3.7%, this figure hides larg e fluctuations ranging from 
a fall of 6.7% in 2012 to an increase of 18.4% in 2013. Imports likewise show volatility, with 
growth rates over the period ranging from a fall of 4% to a rise of 10.4%.  
1.8.  Real GDP growth in 2016 is estimated at 4%, and the foreca sts for 2017 in the draft 2017 
budget are for real GDP growth in the order of 3.8%, a rise in the Consumer Price Index (CPI, end 
of period) of 3.5% and a 2.7% depreciation in the nominal exchange rate. The forecast for 2018 is 
for the same growth rates for  real GDP and the CPI as in 2017, but a smaller nominal depreciation 
of about 1.9%.2 The IMF forecast is for real GDP growth of 3.6% in 2017, with a 4.1% rise in 
the CPI.3 
1.9.  The unemployment rate remained moderate and relatively stable during the review peri od, 
generally fluctuating between 5 % and 6%. The latest available figure is for 2015, indicating an 
unemployment rate of 5.3% . 
                                                
2 Ministry of Finance (2016), Informe de las Finanzas Públicas de la República del Paraguay. Proyecto de 
Presupuesto General de la Nación 2017 , p. 71. Viewed at: 
http://www.hacienda.gov.py/webpresupuesto/archivo.php?a=c5c5c8ced9d2d8d3d793cdcad49694959b92d4c8c
ac5064&x=17170b5&y=22220c . 
3 Online information from the IMF, viewed at: http://www.imf.org/exte rnal/country/PRY/index.htm . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  1.2.2   Fiscal policy  
1.10.   During the review period, Paraguay continued to strengthen its public finances through the 
implementation of pruden t fiscal policies and improved management of taxation. It also adopted 
legislation to this end, and specifically Law No.  5.098/2013 on Fiscal Responsibility, which sets 
annual percentage caps on increases in expenditure as well as limits for the deficit. T he purpose of 
the Law is to establish general rules of fiscal behaviour aimed at ensuring the stability and 
sustainability of the public finances. At the same time, the goal is to ensure that fiscal results do 
not have negative effects on macroeconomic sta bility, maintaining a balance between government 
revenue and spending.  
1.11.   Pursuant to Article 7.1 of the Fiscal Responsibility Law, the central government deficit 
cannot exceed 1.5% of GDP.4 This cap must be taken into account in the preparation and adoption 
of the budget. Likewise, the annual increase in primary current expenditure of the public sector 
cannot exceed the year -on-year inflation rate plus 4%.5 Other provisions of the Law include: 
(a) wages and salaries cannot be increased except when there is an  increase in the index -linked 
minimum wage, in which case the maximum increase is in the same proportion; (b) in general and 
municipal election years, the central government's primary current expenditure between the 
months of January and July cannot be mor e than 60% of the budget adopted for the year, but this 
restriction does not apply to the Judiciary; and (c) a consolidated multiannual (three -year) fiscal 
programme must be adopted establishing that the central government's fiscal position over the 
medium  term cannot show an average deficit in excess of 1%  of GDP.  
1.12.   Over the period 2011 -2016 the central government posted an operating surplus every year, 
ranging from 3.9% of GDP in 2011 to 1.1% in 2013 (Table 1.3). During this period tax collection 
continued to improve and the share of tax revenue in GDP rose from 13% in 2009, as stated in the 
previous TPR Report, to 13.7% in 2015. Despite this improvement, the tax burden in Paraguay 
remains low compared with other countries of the region. Tax rates are relati vely low and the tax 
base remains narrow, especially in some sectors. Thus the share of tax revenue from the 
agricultural sector remains small, but is expected to increase with the entry into force of the 
IRAGRO6 and the agricultural VAT.  
1.13.   After recording a  surplus in 2011, the central government's overall balance has regularly 
shown a small deficit. Since the introduction of the deficit cap in 2013, the actual result exceeded 
this limit in 2013 and 2015 but stayed below it in 2014 and 2016. In 2012 a defici t was created by 
a sharp rise in wage expenditure that was not accompanied by a commensurate increase in 
revenue. In 2013, the deficit overshot the target owing to a smaller operating surplus since 
revenue increased less than expenditure. In 2015, the rise  in the deficit stemmed from lower tax 
revenue than initially forecast, owing to a slowdown in the economy in the second half of the year 
and a delay in the transfer to the central government of US$30  million by the Yacyretá binational 
enterprise and US$60  million from the National Telecommunications Commission (CONATEL) 
4G tender process (section 4). These transfers, which finally entered in 2016, represented 0.4% of 
GDP and had they occurred in 2015 would have led to a deficit of less than 1.5% of GDP, th us 
under the cap.7 However, in order to comply with the Fiscal Responsibility Law, pursuant to Article 
241 of the Law on the General Budget of the Nation 2015 expenditure financed by sovereign bonds 
was excluded from the calculation of the fiscal deficit f or 2015.  
                                                
4 Article 11 of the Law provides that in cases of national emergency or international crisis that may 
seriously affect the national economy or in the event of a fall in domestic economic activity, at the request of 
the Executiv e the Congress may suspend the application of this limit and of the cap on expenditure for the 
corresponding fiscal year. However, the deficit may in no case exceed 3% of GDP.  
5 Article 7.2 of the Law defines primary current expenditure as total current ex penditure excluding 
interest payments.  
6 The IRAGRO is a tax on earnings from agricultural activities such as: raising or fattening of cattle, 
sheep, goats, buffalos and horses; production of wool, hides and skins, animal hair, semen and embryos; crop, 
fruit, vegetable and fish farming production; dairy production; and earnings from the sales of agricultural 
assets. Tax is also levied on income from the raising of pigs, rabbits and poultry, flower production, silkworms, 
honey and forestry when carried out b y the producer and not exceeding 30% of the total income of the rural 
establishment.  
7 Ministry of Finance (2016), Informe de las Finanzas Públicas de la República del Paraguay. Proyecto de 
Presupuesto General de la Nación 2017, p. 2. Viewed at: 
http://www.hacienda.gov.py/webpresupuesto/archivo.php?a=c5c5c8ced9d2d8d3d793cdcad49694959b92d4c8c
ac5064&x=17170b5&y=22220c . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  1.14.   Total central government expenditure represented 18% of GDP in 2015, higher than the 
14.7% recorded in 2011; however, in 2016 an effort was made to contain current expenditure, 
which caused it to fall to 16.8% of GDP. Income amounted to 18.7% of G DP in 2015 and 18.3% in 
2016, as a resul t of higher revenues from value added tax (VAT) and higher non -tax income. 
Foreign trade taxes as a percentage of total income decreased during the review period, to just 
1.2% of GDP in 2015 and 1.1% in 2016, compare d to 1.6% in 2011. The central government's 
primary balance swung from a surplus of 1.3% of GDP in 2011 to a deficit of 1.2% of GDP in 2015, 
thereafter narrowing to 0.7% of GDP in 2016.  
1.15.   Since 2013 Paraguay has been issuing public debt bonds on the internat ional market and 
their share in the composition of the debt has been increasing. Up to May  2017, Paraguay had 
made four issuances of sovereign bonds. The first international sale was launched in 2013 for an 
amount of US$500  million with a ten -year maturity  date. In 2014 a second issuance was launched 
for US$1  billion 30 -year bonds, and in 2015 the 2013 bond issuance was reopened for an amount 
of US$280  million. In 2016 and 2017 Paraguay again tapped the international bond market with 
issuances of US$600 and  500 million, ten -year bonds (Box 1. 1). Since issuance the sovereign 
bonds have performed well on the secondary market, with yields of about 4% on the 2023 bond 
and 2026 bond, and of 5.7% on the 2044 bond.8 At the end of 2015, 68% of Paraguay's public 
debt was denominated in foreign currency.9 
Box 1.1 Issuance of sovereign bonds in Paraguay  
Paraguay launched its first sale of sovereign bonds on the international market on 25  January  2013. This 
issuance presented by the Ministry of Finance was authorized by Congress through the adoption of Law 
No. 4.848/12 on the General Budget of the Nation 2013. The sale was highly successful, with demand several 
times higher than the offer. The purchasers were foreign investors who submitted bids for an amount of over 
US$3.5  billion.  
The issuance was for US$500  million ten -year bonds at an interest rate of 4.625%, with maturity of the 
principal in 2023 and semi -annual interest payments. This bond was reopened in 2015 for an amo unt of 
US$280  million on similar terms but with a lower rate of interest of only 4.15%.  
The second issuance of sovereign bonds on the international market took place on 4  August  2014, authorized 
by Congress through the adoption of the Law on the General B udget of the Nation for fiscal year 2014; the 
amount was increased under Law No.  5.251/2014. Market demand was again several times higher than the 
initial offer presented by the Ministry of Finance. This strong demand meant that the amount offered was 
increased to US$1  billion, with a term to maturity of 30 years, so that this sovereign bond will fall due in 2044. 
The interest rate was 6.10%.  
The third issuance, authorized by Congress through the adoption of the Law on the General Budget of the 
Nation for fiscal year 2016, Law No.  5.554/16, was launched on 31  March  2016. The issuance was for 
US$600  million ten -year bonds with an interest rate of 5%.  
The fourth issuance of sovereign bonds on the international market took place on 22  March  2017, for an 
amou nt of US$500  million with a term to maturity of ten years and a 4.7% interest rate.  
Source:  Ministry of Finance.  
1.16.   In the period under review, total central government debt increased as a proportion of GDP 
from 10.9% in 2 011 to 23.1%, or a total of US$ 6,294.3 million, in December  2016 (Table 1.2), 
with 76.5% held externally. With the sale of bonds on the international market, as of 2013 the 
composition of the main creditors changed considerably. Until 2012, multilateral and bilateral 
creditors accounted for  almost three quarters of total public debt, whereas since 2013 this 
category of creditors has steadily lost ground: in 2016 they accounted for only 37.7% of total 
debt, while sovereign bond debt represented 38.6%.  
1.17.   Paraguay's public debt service is relativ ely low: in 2016, total external debt service including 
interest, principal and commissions, represented only 1.4% of GDP, while domestic debt service 
amounted to 0.9% of GDP, for a total public debt service of 2.3% of GDP. Central government 
public debt s ervice in 2016 represented 10.9% of its total revenue.  
                                                
8 Idem. 
9 Idem. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 1.3 Public finances, central government budget implementation, 2011 -2016  
(% of current GDP at market prices)  
 2011  2012  2013  2014  2015  2016  
Total r evenue collected  18.0 19.0 17.1 17.9 18.7 18.3 
   Tax revenue  12.6 12.7 11.8 12.7 12.7 12.5 
      Income and profits tax  2.5 2.7 2.5 2.7 2.8 2.8 
      Selective goods tax  1.9 2.0 1.6 1.8 1.7 1.7 
      Value added tax (VAT)  6.5 6.5 6.3 6.8 6.9 6.7 
      Foreign trade tax  1.6 1.5 1.3 1.3 1.2 1.1 
      Other tax income  0.1 0.1 0.1 0.1 0.2 0.2 
   Non-tax income  5.5 6.2 5.3 5.2 6.0 5.8 
Total obligated expenditure  14.7 18.0 16.5 16.6 17.8 16.8 
   Personal services  7.5 9.4 9.1 8.8 9.3 8.5 
   Goods and s ervices  1.6 1.6 1.2 1.5 1.6 1.6 
   Interest  0.3 0.2 0.3 0.4 0.6 0.7 
   Social benefits  1.7 2.1 2.1 2.1 2.7 2.6 
   Other expenditure  3.6 4.6 3.7 3.8 3.6 3.4 
Operating balance  3.3 1.0 0.7 1.3 0.9 1.5 
Net acquisition of non -financial assets  2.3 2.6 2.3 2.4 2.6 2.9 
Net lending/borrowing  1.0 -1.7 -1.7 -1.1 -1.8 -1.4 
Memorandum items        
Primary operating balance  3.6 1.2 1.0 1.7 1.5 2.2 
Primary lending/borrowing  1.3 -1.4 -1.4 -0.7 -1.1 -0.7 
Source:  Ministry of Finance.  
1.18.   For 2017, the draft budget for ecast is for a fiscal deficit in the order of 1.5% of GDP, in line 
with the established limit, resulting from an operating surplus of 1.8% of GDP and a net 
acquisition of non -financial assets equivalent to 3.4% of GDP. This deficit should gradually narrow 
in subsequent years owing to a slight decline in the net acquisition of non -financial assets, to reach 
0.3% of GDP in 2019.10 
1.2.3   Monetary policy  
1.19.   The Central Bank of Paraguay (BCP) is the authority responsible for designing and 
implementing monetary policy. In accordance with its organic law (Law No.  489/95 "Organic Law 
of the Central Bank of Paraguay"), its fundamental objectives are to maintain and safeguard the 
stability of the value of the currency and promote an effective and stable financial system.11 
1.20.   Since  May 2011, the Central Bank has conducted monetary policy within an 
inflation -targeting framework.12 The current inflation target, measured by the year -on-year 
variation in the CPI, is 4% with a tolerance range of +/ - 2 percentage points as from 
24 February  2017.13 The authorities consider that this range allows sufficient fluctuation around 
the target, bearing in mind the high exposure of the Paraguayan economy to exogenous shocks as 
a small and open economy.14 When the inflation -targeting framework was intro duced, the BCP 
established a target of 5% with a margin of variation of +/ - 2.5%, which was then reduced to 5% 
+/- 2% in January  2014, to 4.5% +/ - 2% in December  2014, and remaining at 4.5% +/ - 2% in 
February  2017.  
1.21.   The BCP uses the monetary policy rate (MP R) as the instrument for implementing the 
inflation -targeting framework. The MPR acts initially on interest rates and market liquidity, so as 
subsequently to influence inflation. The monetary policy horizon is estimated at between 18 and 
24 months. The Ope n Market Operations Executive Committee (CEOMA) is responsible for setting 
                                                
10 Ibid., p.  73. 
11 Online information from the BCP, viewed at: 
https://www.bcp.gov.py/politica -monetaria -en-el-paraguay -i356. 
12 BCP (2017), Informe de Pol ítica Monetaria II 2016 , December  2016. Viewed at: 
https://www.bcp.gov.py/userfiles/files/IPoM_diciem_2016_28_12_16.pdf . Between January  2004 and 
April 2011, monetary poli cy was conducted in the framework of an "experimental inflation -targeting scheme".  
13 Resolution No.  2, Act No.  12 of 24  February  2017. Viewed at: 
https://www.bcp.gov.py/userfiles/files/Resoluci%C3%B3n_N_2_Acta_N_12_Fecha_24_02_2017.pdf . 
14 BCP (2017), Informe de Política Monetaria , December  2016, viewed at: 
https://www.b cp.gov.py/userfiles/files/IPoM_diciem_2016_28_12_16.pdf ; and at: 
https://www.bcp.gov.py/userfiles/files/Informe_IPC_Diciem_2016_29_12_16%281%29.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  the level of the MPR, which was 5.5% annually in April  2017. The BCP has actively used the MPR 
to ensure price stability during the review period.  
1.22.   Since the formal implementation of  the inflation -targeting framework, the BCP has managed 
to reduce inflation levels and volatility. During the period under review the year -on-year 
movement of the CPI has been kept within, or slightly below, the target range: average inflation 
from May  2011 to December  2016 stood at around 4.2% annually, and in 2016 was 3.9%, above 
the 3.1% recorded in 2015.15 Low inflation has made it possible to narrow the tolerance range and 
subsequently the target twice. In view of the low inflationary pressure, the BCP has maintained a 
relatively expansionary profile in monetary policy so as to spur economic growth. Inflation 
expectations have adjusted to the target, as a result of the BCP's policies and the credibility it has 
acquired as the inflation -targeting framewor k has become more solidly rooted.  
1.23.   The strong economic performance, together with an increase in the degree of financial 
intermediation, have been reflected in a significant rise in credit to the private sector during the 
review period, with a growth of 163 .1% between 2011 and 2016, equivalent to 133.9% growth in 
real terms.  
1.24.   During the same period, commercial bank interest rates on deposits followed a downward 
trend, although with considerable fluctuations, while lending rates remained relatively stable 
(Table 1.4).  
1.25.   Paraguay has a flexible exchange rate system, and the BCP only occasionally intervenes on 
the foreign exchange market to dampen sharp rate swings that do not correspond to market 
fundamentals. During the review period, the multilateral real exchan ge rate appreciated by about 
4%, although fluctuating considerably over the period.  
Table 1.4 Monetary indicators, 2011 -2016  
 2011  2012  2013  2014  2015  2016  
Money supply and credit (annual variation)        
M1 11.6 9.7 14.8 9.2 10.1 10.1 
M2 17.5 12.6 17.5 17.8 5.8 8.1 
M3 13.5 12.2 21.7 13.9 15.1 5.0 
Credit to the private sector  24.8 12.6 23.9 21.1 22.9 0.5 
Prices and interest rates        
Consumer Price Index (annual average, 
December  2007=100)  122.2  126.7  130.1  136.6  140.9  146.7  
Inflation (percentage change)  8.3 3.7 2.7 5.0 3.1 3.9 
Central Bank interest rate  7.25 5.50 6.00 6.75 5.75 5.50 
Commercial bank interest rates for foreign 
currency (annual average)        
   Deposit interest rate  2.92 2.00 3.70 2.16 3.58 2.91 
   CD interest rate  5.59 6.44 5.96 5.11 4.79 4.56 
   Lending rate  7.98 9.30 8.47 8.18 8.71 9.36 
Exchange rate        
₲/US$ (annual average)  4,156  4,405  4,314  4,447  5,246  5,649  
Real exchange rate, annual average 
(January  1995=100)  107.9  106.8  99.9 94.7 91.5 92.6 
Real exchange rate, end of period 
(January  2015=100)  108.1  100.9  99.5 88.9 93.4 93.1 
Real exchange rate, end  of period 
(annual  variation)  -6.0 -6.6 -1.4 -10.6 5.0 -0.2 
Source:  Central Bank of Paraguay.  
1.26.   In the International Monetary Fund's Article IV consultation with Paraguay in April  2016, the 
IMF Executive Directors "concurred that the moderately accommodativ e monetary policy stance 
remains appropriate given the uncertain international context and contained inflationary 
pressures". They also considered that "limiting discretionary foreign exchange market 
                                                
15 BCP ( 2016), Informe Mensual de Inflación , December  2016. Viewed at: 
https://www.bcp.gov.py/userfiles/files/Informe_IPC_Diciem_2016_29_12_16%281%29.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  interventions to exceptional circumstances of disorderly  market conditions would reinforce the 
inflation -targeting regime".16 
1.2.4   Balance of payments  
1.27.   During the period under review, Paraguay's balance of payments current account has been 
in surplus every year with the exception of 2012 and 2015 (Table 1.5). This ref lects in particular 
the large surpluses on the goods trade balance recorded durin g the period stemming from 
soya bean and meat exports. The services balance was continuously in deficit, in contrast with the 
situation described in the previous report. This is the result of the changes made by Paraguay in 
its statistics, specifically as regards accounting for income from royalties in connection with sales 
of hydroelectric power by the binational enterprises, which was previously included in the balance 
of ser vices.17 
Table 1.5 Balance of payments, 2011 -2016a 
(US$ million)  
 2011  2012b 2013b 2014b 2015b 2016b 
I.- Current account  200 -286 612 27 -287 460 
A. Goodsc 854.2  570.8  1.662.3  1.026.0  581.0  1,367  
1. Exports (credit)  12,638.6  11,653.6  13,604.7  13,105.2  10,897.8  11,155  
2. Imports (debit)  -11,784.5  -11,082.8  -11,942.4  -12,079.2  -10,316.8  -9,789  
B. Services  -180.6  -170.2  -219.4  -222.3  -244.0  -221 
1.Transport  -309.4  -295.9  -275.9  -310.9  -341.0  -306 
2. Travel  67.0 57.7 29.7 32.7 36.9 26 
3. Other servicesd 61.8 68.0 26.8 55.8 60.2 59 
C. Income  -1,187.5  -1,445.5  -1,550.8  -1,383.3  -1,296.5  -1,461  
1. Remuneration of employees  0.0 0.0 0.0 0.0 0.0 0.0 
2. Investment income  -1,187.5  -1,445.5  -1,550.8  -1,383.3  -1,296.5  -1,461  
2.1 Foreign direct investment  -550.3  -854.0  -949.5  -811.5  -696.2  -821 
2.2 Portfolio investment  0.0 -9.8 -59.4 -71.0 -138.4  -176 
2.3 Other investment  -637.2  -581.7  -542.0  -500.8  -461.9  -464 
D. Current transfers  713.6  758.7  719.9  606.2  672.2  775 
1. General government  26.6 14.6 6.6 4.6 8.6 9 
2. Other sectors  687.0  744.1  713.3  601.6  663.6  767 
II. Capital and financial account  493.2  882.6  270.3  1,636.2  -651.7  -40 
A. Capital account  40.0 51.0 61.2 141.0  154.0  163 
1. Capital transfer  40.0 51.0 61.2 141.0  154.0  163 
B. Financial account  453.2  831.6  209.1  1,495.2  -805.7  -203 
1. Direct investment  581.2  697.1  252.2  382.1  260.3  274 
2. Portfolio investment  100.0  500.0  500.0  1,300.0  280.0  500 
3. Other investment  -228.0  -365.4  -543.1  -186.9  -1,345 .9 -976 
3.1 Assets  248.5  -126.7  -64.7 322.4  -712.8  -289 
3.1.1 Commercial credits  -44.9 -47.1 -34.8 -46.9 -33.6 -34 
3.1.2 Loans  162.1  -86.1 187.1  9.3 -54.7 -7 
3.1.3 Currency and deposits  157.2  -22.3 -99.5 348.6  -638.7  -221 
3.1.4 Other assets  -25.9 28.8 -117.5  11.4 14.2 -27 
3.2 Liabilities  -476.6  -238.7  -478.4  -509.3  -633.1  -687 
3.2.1 Commercial credits  -25.9 203.7  -252.7  -9.1 -34.2 -26 
3.2.2 Loans  -355.3  -512.1  -670.5  -604.2  -591.1  -445 
3.2.3 Currency and deposits  -140.0  -22.3 -64.0 11.4 -18.3 13 
3.2.4 Other liabilities  44.6 92.0 508.8  92.6 10.5 -230 
III. Errors and omissions  91.2 -621.0  153.4  -531.8  379.3  538 
IV. Reserve assets  -784.1  24.5 -1,035.7  -1,131.1  559.6  -957 
a Standardized presentation in line with the fifth edition of the IMF Balance  of Payments Manual. The 
Itaipú and Yacyretá binational hydroelectric enterprises are considered as residents.  
b Preliminary figures.  
c Includes exports of electricity of the binational entities, re -exports, foreign trade recorded in 
customs and others.  
d Variation in net international reserves; increase ( -) and loss (+).  
Source:  Central Bank of Paraguay, Economic Studies, Department of Foreign Trade Statistics.  
                                                
16 IMF (201 6), Paraguay.  2016 Article IV Consultation – Press Release; and Staff Report ; and 
Informational Annex . Country Report No.  16/116, May  2016. Viewed at: 
https://www.imf.org/external/pub s/ft/scr/2016/cr16116.pdf . 
17 Prior to 2013, for accounting purposes in the balance of payments the binational hydroelectric 
enterprises Itaipú (jointly owned by Brazil and Paraguay) and Yacyretá (jointly owned by Argentina and 
Paraguay) were considered "n on-resident" enterprises, so that electricity consumption in Paraguay was 
counted as an import in the trade balance. Royalties, compensation for energy transfer and related services of 
the binational enterprises were counted in the services balance, while investment was recorded as part of the 
contribution of the National Electricity Authority to the share capital of the two binational enterprises. The 
change was made because the fact that the binational enterprises were considered "non -resident" resulted i n 
an undervaluation of Paraguay's GDP.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  1.28.   The income account balance widened considerably for the entire period under review, 
reflecting t he investment earnings of foreign investment firms. Current transfers showed a surplus 
in each of the years of the review period owing to the rise in family remittances.  
1.29.   The capital and financial account (excluding reserve assets and exceptional financing)  was 
in surplus between 2011 and 2014, but moved into deficit in 2015 and 2016, reflecting the rise in 
financial assets abroad of financial and non -financial economic agents in those last two years. The 
authorities have pointed out that external financing through the acquisition of liabilities remained 
stable during the period under review, during which the Government issued external bonds on 
favourable terms. Foreign direct investment, which grew steadily in 2011 and 2012, began to 
decline in 2013. Through  most of the review period Paraguay added substantially to its stock of 
international reserves. At the end of 2016, the net balance of international reserves amounted to 
US$7,144  million, or the equivalent of 26% of GDP, as against US$4,984  million in 2011 . 
1.3  Trade performance: goods and services  
1.3.1   Composition of merchandise trade  
1.30.   Paraguay's foreign trade in goods and non -factor services (exports and imports) was 
equivalent to 83.7% of GDP in 2016. This percentage is lower than the figure given in the previous 
report for 2009 (97.2%). In 2016, recorded merchandise exports amounted to US$8,494  million 
(excluding re -exports), while recorded imports totalled US$9,753  million (Chart 1.1 and 
Tables  A1.1 and A1.2).  
1.31.   The structure of Paraguay's exports remained stable d uring 2011 -2016. Commodities, the 
vast majority of which are agriculture products, represented almost 90% of merchandise exports 
in both 2011 and 2016 (Table A.1.1). Agriculture and food products accounted for over 60% of 
goods exports in 2016. Soya beans and soya by -products (seed cake and oil) remained the main 
export product (36.9% of the total in 2016), followed by beef (fresh, chilled or frozen), 
representing 13.6%, and cereals (8.1%). The export share of manufactures was below 10%; 
the main export ite ms were chemical products (especially medicines), leather articles, and textiles 
and clothing.  
1.32.   The main imports were machinery and transport equipment, representing 38.5% of the total 
in 2016, followed by chemical products, with 15.4%. Mineral products acc ounted for 12.6% of 
imports (Chart 1.1 and Table A1.2).  
1.3.2   Geographical distribution of merchandise trade  
1.33.   According to the figures obtained from the COMTRADE database, Paraguay's exports to 
other countries in the Americas rose moderately, from 58.8% in 2011 t o 60.7% in 2016 (Chart 1.2 
and Table A1.3). There was also an increase in the share of exports going to its MERCOSUR 
partners, which accounted for 45% of the total in 2016, compared to a little over 40% in 2011. 
Brazil was the leading destination market fo r Paraguayan products in 2016, with 35.4% of the 
total, followed by Argentina (10.7%) and Chile (6.1%).  
1.34.   On the import side, the share of countries in the Americas fell from 54.1% in 2011 to 52.6% 
in 2016 (Chart 1.2 and Table A1.4). This reflects a slight c ontraction in the share of imports from 
MERCOSUR, which represented 40% of the total in 2016. In that same year, imports mainly 
originated from China, Brazil and Argentina. Imports from Europe increased their share in the 
total, while those from Japan decl ined. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Chart 1.1 Merchandise trade by main HS sections, 2011 and 2016  
2011 2016
(a)    Total exports
Total: US$7,776 million
(b)    Total imports
Textiles
3.2% Textiles
3.2%
Total: US$12,366 million Total: US$9,753 millionTotal: US$8,494 millionFood products 
7.5%Other
7.5%
Animal or 
vegetable fats 
and oils
4.5%Other
7.4%
Chemical 
products
12.4%Food 
products
12.0%Electrical machinery 
and appliances
2.0%
Base metals
4.5%Mineral 
products
14.0%
Electrical machinery 
and appliances
30.9%Other
7.8%
Plastics
6.2%Chemical 
products
15.4%
Base 
metals
5.0%Electrical machinery 
and appliances
26.8%Other
9.2% Food 
products
5.8%Miscellaneous
5.3%
Mineral 
products
12.6%Food 
products
7.3%Vegetable 
products
39.1%Vegetable 
products
31.0%Electrical machinery 
and appliances
0.7%
Mineral 
products
25.6%Animal or 
vegetable fats 
and oils
5.9%
Mineral 
products
29.4%
Miscellaneous
3.7%
Plastics
5.1%Transport 
equipment
10.9%Hides and skins and
articles thereof
1.6%
Transport 
equipment
10.5%Live animals
10.0%Live animals
14.5%Hides and skins and 
articles thereof
1.4%
 
Source: WTO Secretariat estimates, based on data provided by the authorities.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Chart 1.2 Merchandise trade by trading partner, 2011 and 2016  
2011 2016
(a)    Total exports
Total: US$7,776 million
(b)    Total imports
Total: US$12,366 million Total: US$9,753 millionTotal: US$8,494 millionChile
7.0%Other
6.6%
Argentina
8.9%EU (28)
14.0%
Other 
Americas
10.8%CIS
5.3%
Mexico
1.5%Americas
60.7%
Argentina
10.7%
Other 
Americas
8.5%India
2.3%Other
5.7% Other Asia
6.9%
Americas
58.8%Other Asia
6.0%
Brazil
26.4%
Other 
Americas
10.9%Japan
3.2%
EU (28)
6.2%Chile
1.2%China
29.6%Other 
Asia
5.0%Other
0.8%
Brazil
24.2%
Mexico
1.4%Other 
Americas
11.0%EU (28)
8.4%Japan
2.5%
China
27.1%Other
Asia
5.9%Other
3.0%
Americas
54.1% Americas
52.6%
Other Europe
1.0%Other Europe
0.6%Asia
37.8%Asia
35.5%
Argentina
14.7%Other Europe
2.9%CIS
7.7%
EU (28)
19.8%
Argentina
14.1%Brazil
32.1%
Brazil
35.4%
Chile
1.4%India
0.6%
Other Europe
2.8%Europe
22.7%Asia
6.6%
Europe
16.8%Asia
9.1%
Europe
8.9%Europe
7.3%Chile
6.1%
 
Source: WTO Secretariat estimates, based on data provided by the authorities.  
1.3.3   Trade in services  
1.35.   As shown in Table 1.6, Paraguay's foreign trade in services recorded deficits throughout the 
period 2011 -2016, amounting to US$244  million in 2015 and US$221  million in 2016. The biggest 
deficits are in transport, insurance, financial services and royalties. Paraguay has a small surplus in 
the travel category.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 1.6 Trade in services, 2011 –2016  
(US$ million)  
 2011  2012  2013  2014  2015  2016a 
Exports  722.3  756.3  848.6  891.6  859.9  871.1  
Transport  283.1  293.0  380.3  388.4  322.9  334.0  
Travel  240.7  264.5  272.7  288.2  317.9  314.0  
Communications  16.0 13.0 13.0 15.0 16.0 16.0 
Construction  0.0 0.0 0.0 0.0 0.0 0.0 
Insurance  24.0 20.0 20.0 21.0 20.0 20.0 
Financial services  5.4 2.7 3.2 9.4 8.5 8.5 
Information technology and information  0.4 0.4 0.4 0.4 0.4 0.4 
Royalties and licence fees  0.0 0.0 0.0 0.0 0.0 0.0 
Other busi ness services  2.7 2.7 2.7 2.7 2.7 2.7 
Government services  150.0  160.0  156.3  166.5  171.5  175.5  
Imports  902.9  926.5  1,067.9  1,113.9  1,103.8  -1,092.2  
Transport  592.5  588.9  656.2  699.3  663.9  -640.4  
Travel  173.7  206.8  243.0  255.5  281.0  -287.7  
Communicatio ns 4.0 4.0 4.0 4.0 4.0 -4.0 
Construction  0.0 0.0 0.0 0.0 0.0 0.0 
Insurance services  47.1 47.1 47.1 47.6 47.1 -47.1 
Financial services  34.4 47.5 50.6 48.4 47.3 -49.6 
Information technology and information  2.1 2.1 2.1 2.1 2.1 -2.1 
Royalties and licenc e fees  2.5 2.5 37.3 18.1 18.5 -19.3 
Other business services  6.6 6.6 6.6 9.0 6.6 -6.6 
Government services  40.0 21.0 21.0 30.0 33.3 -35.4 
Balance of services  -180.6  -170.2  -219.4  -222.3  -244.0  -221.1  
a Preliminary figures.  
Source:  Central Bank of Paragua y, Economic Studies, Department of Foreign Trade Statistics  
1.4  Foreign direct investment  
1.36.   Foreign direct investment (FDI) flows totalled US$4,410  million in 2015, compared with 
US$3,906 million in 2011. The United States holds the largest stock of FDI in Parag uay, with 
US$1,169 in 2015, followed by Brazil with US$827  million and Spain with US$385  million 
(Table  1.7). 
Table 1.7 FDI balances by investor country of residence, 2011 -2015 (end of period)  
(US$ thousand)  
 2011  2012  2013  2014a 2015a 
Total balances  3,905,781  4,956,340  4,915,784  5,438,539  4,410,944  
United States  1,682,156  1,726,974  1,546,938  1,587,081  1,168,741  
Brazil  643,570  710,020  731,032  916,326  826,619  
Spain  317,635  460,591  458,030  480,919  384,275  
Netherlands  37,688  291,036  234,639  306,462  340,260  
Panama  123,353  144,471  154,392  177,369  272,901  
Argentina  229,207  305,310  334,133  311,810  228,854  
Luxembourg  323,311  331,936  296,251  388,963  201,011  
United Kingdom  133,519  212,961  164,402  309,048  161,917  
Chile 6,436  111,088  136,238  156,929  131,440  
Switzerland  85,211  171,636  171,076  149,944  124,492  
Colombia  8,473  9,710  74,049  91,445  92,748  
Uruguay  66,654  68,150  70,266  69,036  90,916  
Guatemala  26,697  29,527  31,241  75,703  87,107  
Mexico  38,944  108,362  110,852 106,956  72,456  
Germany  35,140  54,719  61,517  45,424  62,971  
France  30,701  36,000  43,704  50,649  48,582  
Japan  -1,856  22,702  49,672  95,157  42,521  
Hong Kong, China  0 5,951  14,833  14,243  16,552  
Sweden  8,873  8,709  8,441  9,321  11,434  
Italy 9,187  10,717  90,207  7,118  10,678  
El Salvador  0 0 0 0 9,278  
Canada  0 16,357  12,513  8,947  7,143  
China  2,615  5,702  5,829  6,059  6,390  
Australia  10,592  11,253  8,382  4,834  3,859  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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   2011  2012  2013  2014a 2015a 
Korea, Rep. of  0 5,186  4,790  5,649  3,828  
Portugal  85,973  95,089  99,927  60,716  1,771  
Peru 1,340 1,658  1,675  1,785  1,531  
Bolivia  -18 160 410 495 547 
Ecuador  381 364 346 153 122 
a Preliminary figures.  
Source:  Central Bank of Paraguay, Foreign Investment Division.  
1.37.   The sectoral composition of FDI balances is heavily concentrated in the services se ctor, 
particularly financial intermediation, and in the production of vegetable oils, which together 
accounted for almost half the volume of FDI in 2015. Other activities that received major FDI flows 
are commerce, transport, the chemical industry and meat  production (Table 1.8).  
Table 1.8 FDI balances by national classification of activities (CNAP) category, 
2011 -2015 (end of period)  
(US$ thousand)  
 2011  2012  2013  2014  2015a 
Total balances  3,905,781  4,956,340  4,915,784  5,438,539  4,410,944  
Agriculture  125,208  161,173  165,076  263,990  184,756  
Livestock  0 0 0 0 0 
Forestry  56,590  65,910  69,284  76,000  66,405  
Fishing  0 0 0 0 0 
Mining  0 22,574  35,676  36,779  14,775  
Meat production  39,947  106,323  114,462  179,478  188,843  
Production of oils  1,012,285  1,318,809  1,066,259  1,051,963  924,391  
Dairy products  4,131  5,014  5,752  5,353  4,533  
Milling and baking  6,561  2,132  0 0 0 
Sugar  0 0 17,016  19,552  6,761  
Other foods  17,191  14,317  13,564  7,809  6,706  
Beverages and tobac co 290,960  339,248  344,980  288,775  243,243  
Textiles and clothing  33,912  51,555  54,500  57,718  51,889  
Leather and footwear  30,505  44,290  47,783  47,728  50,036  
Wood industry  5,780  5,645  3,994  12,541  19,899  
Paper and paper products  27,860  46,280  50,157  51,119 63,463  
Petroleum refining  0 0 0 0 0 
Chemical products  163,950  221,623  250,413  239,699  234,038  
Non-metallic manufactures  34,207  46,097  42,585  61,550  35,304  
Base metal manufactures  0 0 0 0 631 
Machinery and equipment  6,931  25,318  62,747  127,909  77,018 
Other manufactures  0 0 0 0 4,861  
Electricity and water  0 0 0 0 0 
Construction  2,545  2,818  3,266  3,640  5,480  
Commerce  310,669  402,458  430,919  459,367  429,000  
Transport  517,253  472,834  493,752  527,985  508,480  
Communications  329,274  439,563  420,874  413,505  233,566  
Financial intermediation  832,627  1,088,171  1,140,850  1,371,184  930,602  
Housing rental  15,026  30,717  38,782  39,538  31,932  
Business services  2,269  3,413  3,463  9,706  -826 
Restaurants and hotels  36,569  38,402  37,955  83,867  93,625  
Household services  3,529  1,658  1,675  1,785  1,531  
a Preliminary figures.  
Notes:  Data obtained from surveys and balance sheets provided by firms. Data from the Banking 
Supervisory Authority. Data from the Insurance Supervisory Authority.  
Source:  Central Bank of Parag uay, Foreign Investment Division.  
 
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  2  TRADE AND INVESTMENT REGIME  
2.1  General framework  
2.1.  Paraguay's basic institutional and legal framework has not undergone any major changes 
since the preceding trade policy review in 2011. The Constitution of the Republic of P araguay, 
which dates from 1992, establishes the fundamental rights, structure and powers of the Executive, 
Legislative and Judicial Branches. The territory of the Republic of Paraguay is divided into 
departments, municipalities and districts.1 Executive po wer rests with the President of the 
Republic, who appoints the Council of Ministers, which in turn advises the President. The 
presidential term of office is five years. The next legislative and presidential elections are set for 
April 2018. The Judiciary c onsists of the Supreme Court of Justice, courts of appeal and lower 
courts, which are courts of first instance and include criminal, civil, commercial, labour, and child 
and adolescent courts.2 
2.2.  Legislative power is exercised by the National Congress, which  comprises the Senate 
Chamber and the Chamber of Deputies, and has a five -year term of office. Draft laws may 
originate from either of the Chambers of Congress, the Executive, popular initiative, or the 
Supreme Court. The National Congress is empowered to amend or reject draft laws. International 
treaties must be approved by the National Congress, before being enacted by the President of the 
Republic. All enacted legislation, including decrees and some resolutions, must be published in the 
Official Journal.3 
2.3.  The institutions and entities that participate in trade policy formulation in Paraguay include 
the Economic Cabinet, the Ministry of Industry and Trade (MIC), the Ministry of Foreign Affairs, the 
Ministry of Finance, the Ministry of Agriculture and Lives tock and the Ministry of Public Works and 
Communications. The Economic Cabinet advises the National Government on economic policy.4 Its 
advisory function covers public investment programmes, projects that involve economic and 
financial measures, and measur es to support and diversify industrial development and exports. In 
the economic and commercial realm, the functions of the Ministry of Foreign Affairs are to conduct 
negotiations on international economic matters, foreign trade, integration and internation al 
cooperation processes and binational and multinational ventures, where appropriate in 
coordination with other State entities.5 
2.4.  The MIC is responsible for promoting, regulating, protecting and fostering industrial activity 
and trade in goods and services  within Paraguay and for integrating them in international markets. 
The MIC also promotes industrial production, and regulates, facilitates and encourages the 
distribution, circulation and consumption of goods and services of domestic and foreign origin th at 
are not regulated by special laws.6 
2.5.  The MIC is subdivided into three Vice -Ministries, namely the Vice -Ministry of Industry, the 
Vice-Ministry of Trade and the Vice -Ministry of Micro, Small and Medium -sized Enterprises 
(MSMEs). The Vice -Ministry of Indus try is responsible for devising strategies for the application of 
the country's industrial policy instruments, through measures aimed at stimulating domestic and 
foreign investment and boosting the country's competitiveness.7 
                                                
1 Constitution of the Republic of Paraguay, Article 156.  
2 WTO document WT/TPR/S/245/Rev.1 of 16  May 2011.  
3 All laws, decrees and resolutions are easily accessible online at: http://www.gacetaoficial.gov.py . 
4 The Economic Cabinet comprises the Minister for Finance (who chairs it), the Minister for Industry and 
Trade, the Minister for Agriculture and Livestock, the Minister for Public Works and Communications, the 
Execu tive Secretary of the Technical Secretariat for Economic and Social Development Planning, and the 
Minister/Secretary -General of the Office of the President of the Republic.  
5 The functions of the Ministry of Foreign Affairs are set out in its Organic Law N o. 1635/00.  
6 The functions of MIC are laid down in Law No.  904/36 and amendments thereto. During the period 
under review, the MIC issued Resolution No.  48 of 30  January  2015 establishing the summary procedure for 
administrative proceedings instituted by t he MIC in respect of matters such as industrial parks, electronic 
commerce, the maquila export industry, technical standards, registration and certificates, fines and monetary 
penalties.  
7 Online information from the MIC, viewed at: 
http://www.mic.gov.py/mic/site/industria/institucional_objetivos.php . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  2.6.  The Vice -Ministry of Trade is tasked with advising, assisting and supporting public and private 
sector activities relating to Paraguay's commercial and foreign trade policy. Its remit also includes 
the overall management of the single window for exports (VUE). It is also responsible, inter alia,  
for planning activities relating to trade policy, international trade negotiations, the issuance of 
certificates of origin and of export/import licences, and for the management of tariff quotas. In 
addition, it advises producers, exporters and i mporters in commercial negotiation processes 
regarding their products.8 Managed by the Vice -Ministry of Industry, the Investment and Export 
Network (REDIEX) is in charge of trade and investment promotion (section 3.2. 4.7.1). 
2.7.  The Vice -Ministry of MSMEs was established under Law No.  4.457 of 16  May 2012 and its 
principal functions encompass the coordination and management of the National MSME System, 
which involves implementing the single integrated MSME registration, certification and information 
system; coo rdinating and implementing support policies for strengthening and developing MSMEs; 
and promoting the operation of the guarantee fund and other instruments that facilitate access to 
credit.9 
2.8.  The private sector is involved in trade policy formulation in Par aguay through its participation 
in councils and forums that discuss public policy.10 Especially noteworthy is the Advisory Business 
Council on Foreign Trade (CEACE) coordinated by the Ministry of Foreign Affairs, in which private 
sector positions and concer ns regarding Paraguay's foreign trade policy are aired and discussed.11 
2.9.  New trade -related legislation was introduced and existing legislation amended during the 
review period in the fields of investment and incentives; transparency; electronic commerce; 
public-private partnerships; value  added tax; the in -bond processing (maquila) system; protection 
of competition; government procurement; and mining (Table 2.1).  
Table 2.1 Main trade -related laws and decrees  
Topic Main laws  
Investment and 
incentives   Law No. 60/90 on investment incentives (as amended by Law No.  2.421/2004)  
 Law No. 117/91 on investment  
 Law No. 4.838/12 establishing the national automotive policy  
 Law No.  4.427/12 providing incentives for the product ion, development or assembly 
of high -technology goods  
 Law No.  5.074/13 amending and supplementing Law No. 1.302/98 laying down 
procedures and special and complementary criteria for Law No.  1.045/83 establishing 
the public works regime  
 Law No. 5.102/13 on the promotion of investment in public infrastructure and the 
expansion and upgrading of goods and services provided by the State  
 Law No.  4.903/14 on industrial parks; Law No. 5.542/15 on investment guarantees, 
the promotion of job creation, and economic an d social development  
 Decree No.  11.771/00 on the raw materials regime (as amended by Decree 
No. 2.884/14 and Resolution No.  1/01 of the Ministry of Finance)  
 Decree No. 6.495/16 supplementing and adapting the regulatory framework for the 
national public inv estment system  
Transparency   Law No. 5.189/14 on the provision of information in the use of public resources  
 Law No. 5.282/14 on access to public information  
                                                
8 Online information from the MIC, viewed at: 
http://www.mic.gov.py/mic/site/comercio/dgce/funciones.php . 
9 Law No.  4.457 of 16  May 2012. Viewed at: http://mipymes.mic.gov.py/index.php/marco -legal. 
10 The following were established to this en d: the National Country Strategy Team, the Municipal 
Development Council, the Private Council for the Reduction of Extreme Poverty, Open Government, and the 
National Financial Inclusion Strategy. Tercer Informe del Presidente Horacio Cartes al Congreso y a  la Nación  
(2016), July (p. 116). Viewed at: 
http://www.informepresidencial.gov.py/documents/14304/0/infomre+presi dencial+2016+web.pdf/b7ced2a7 -
61fc-42d6-b9d4-c9ff832e5b4e . 
11 Regular participants in CEACE meetings include representatives of various private -sector institutions 
such as: the Centre for River Shipowners of Paraguay; Paraguayan Chamber of Exporters (CAPEX ); 
Paraguayan Meat Chamber; Importers' Centre of Paraguay; Paraguayan Chamber of Cereal and Oilseed 
Exporters; Paraguayan Industrial Union; Shipbuilding Industry Chamber; Paraguayan Chamber of Oilseed 
Processors; Chamber of Advertisers of Paraguay; Rural A ssociation of Paraguay; Chamber of Automotive and 
Machinery Distributors; and Chamber of the Chemical -Pharmaceutical Industry of Paraguay.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Topic Main laws  
Electronic commerce   Law No. 4017/10 on the legal validity of electronic signatures, digital sign atures, data 
messages and electronic files  
 Law No. 4.610/12 partially amending and supplementing Law No.  4.017/10  
 Law No. 4.868/13 on electronic commerce  
 Decree No. 7.369/11 adopting the General Regulations implementing Law 
No. 4.017/10  
 Decree No. 1.165/1 4 implementing Law No. 4.868/13 on electronic commerce  
Public -private 
partnership   Law No. 5.102/2013 on public -private partnership  
 Decree No.  1.165/14 implementing Law No.  5.102/2013  
MSMEs   Law No. 4.457/12 on micro, small and medium -sized enterprises  
 Decree No.  9.261/12 on micro, small and medium -sized enterprises  
Customs procedures   Law No. 2.422/04 on the Customs Code  
 Decree No. 4.672/05 implementing Law No. 2.422/04 on the Customs Code  
Taxes   Law No.  2.421/04 (as amended by Law No.  5061/2013) - VAT 
 Law No. 2.421/04 (as amended by Law No.  4.045/2010) - Selective consumption tax 
(ISC)  
Anti-dumping, 
countervailing and 
safeguard measures   Law No. 444/94 ratifying the Final Act of the GATT Uruguay Round  
 Decree No.  15.286/96 - Procedure for the application o f anti -dumping and 
countervailing measures  
 Decree No.  1.827/99 - Regulations on the application of safeguard measures  
 Decree No.  7.105/00 - Regulations on the application of safeguard measures to 
non-Southern Common Market (MERCOSUR) countries  
 Decree No.  10.363/00 - Form for submitting a request for the application of a 
safeguard measure  
Free zones   Law No. 523/95 authorizing and establishing the free zone regime (as amended by 
Law No.  2.421/04) and its implementing decrees  
 Decree No.  15.554/96 implementing  Law No.  523/95  
In-bond processing 
(maquila)   Law No. 1.064/97 on the maquila export industry (as amended by Law No.  5.408/15)  
Standards and 
technical regulations   Law No. 2.575/05 revising the Charter of the National Institute of Technology and 
Standardiz ation  
Sanitary and 
phytosanitary 
requirements   Law No. 672/24 on the Agricultural Protection and Plant Health Inspection Directorate  
 Law No. 836/80 on the Health Code  
 Law No.  123/91 adopting new standards of phytosanitary protection  
 Law No. 385/94 on se eds and the protection of cultivars  
 Law No. 2.426/04 establishing the National Animal Quality and Health Service 
(SENACSA)  
 Law No. 2.459/04 establishing the National Plant and Seed Quality and Health Service 
(SENAVE), as amended by Law No.  4.866/13  
 Law No.  3.742/09 on the control of phytosanitary products for agricultural sanitary 
use 
Protection of 
competition   Law No. 4.956/13 on the protection of competition - Decree No.  1.490/14 regulating 
Law No.  4.956/13 on the protection of competition  
Government 
procurement   Law No. 2.051/03 on government procurement  
 Law No. 4.558/11 establishing mechanisms to support domestic production and 
employment through government procurement  
Intellectual property   Law No. 868/81 on industrial designs  
 Law No. 1.294/98 on trade marks  
 Law No. 1.328/98 on copyright and related rights  
 Law No. 2.593/05 on patents  
Forestry   Law No. 422/73 – Forestry Law  
Fisheries   Law No. 3556/98 on fisheries and aquaculture  
Mining   Law No. 3.180/07 on mining as amended in 2011 (Law No.  4.296) and 2 013 (Law 
No. 4.935)  
Energy   Law No. 966/64 establishing the National Electricity Authority  
 Law No. 799/95 on hydrocarbons  
 Law No. 2.748/05 on the promotion of biofuel  
 Law No. 3009/06 on independent electricity generation and transport  
Financial services   Law No. 861/96 - General law on banks, finance companies and other credit 
institutions  
 Law No. 827/96 on insurance  
Telecommunications   Law No. 642/95 on telecommunications and amendments thereto  
Transport   Law No. 476/57 establishing the River and Mariti me Navigation Code  
 Law No. 295/71 on cargo reservation  
 Law No. 1.860/02 on the Aviation Code  
Tourism   Law No. 2.828/05 - General law on tourism  
Source:  Online information from the Government of Paraguay, viewed at:  www.gacetaoficial.gov.py . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  2.2  Trade policy objectives  
2.2.1   General trade objectives  
2.10.   Paraguay's trade strategy is framed by the guidelines of its National Development Plan 
(PND) 2014 -2030, and is influenced by the country's participation in MERCOSUR. Histo rically, 
Paraguay's economic model and pattern of integration in the global environment has been based 
on three key pillars: the traditional export of agricultural, livestock and forestry products; the 
export of hydroelectric power to neighbouring countrie s; and commercial intermediation.12 
Paraguay advocates special and differential treatment for landlocked developing countries with 
small and vulnerable economies, as it believes that these features render them vulnerable to 
external shocks and generate high  costs in international trade. Paraguay also views informality in 
some sectors, such as fuel and food, as well as smuggling, as obstacles to its economic 
development.13 
2.11.   Mindful of these features and to promote diversification of the economy, the Paraguayan 
Government drew up the PND 2014 -2030.14 The Technical Secretariat for Economic and Social 
Development Planning (STP) and the Ministry of Finance are empowered to design, manage and 
coordinate national development plans and programmes for implementing the PN D15, which 
consists of three main thrusts: (i) poverty reduction and social development; (ii) achieving 
inclusive economic growth; and (iii) Paraguay's presence on the global scene. Each thrust 
embodies strategies for action and practical steps to implement  the PND.  
2.12.   The objectives pursued under inclusive economic growth  include infrastructure upgrades, 
support for production, designing an agricultural and industrial policy, encouraging competition 
and formalization of the economy, and promoting open and tran sparent government machinery. 
The practical steps contemplated in the PND involve stimulating and diversifying production, 
attracting investment and boosting agricultural activity. The industrial policy envisaged under the 
PND emphasizes development of the  agro-industrial sector and of industries based on 
technological innovation and services exports. The section addressing Paraguay's presence on the 
global scene  encompasses activities to attract investment and promote economic and regional 
integration as w ell as sustainability of the global habitat. The aim is to position Paraguay among 
the world's leading food exporters. As regards international trade, the goal is to strengthen 
bilateral ties and Paraguay's diplomatic presence abroad.16 
2.13.   Presented in 2016, t he President's Third Report to Congress and the Nation highlights some 
of the advances made under the PND, among which are increased foreign investment, especially in 
the maquila industries, and the development of agricultural technology. The Report also m entions 
improvements made in quality control and the protection of animal health in line with international 
standards, and in the implementation of infrastructure projects.17 
2.2.2   Electronic commerce  
2.14.   During the review period Paraguay adopted a range of measures to regulate and foster 
electronic commerce. Law No. 4.017/10 on digital signature gives legal validity to electronic 
signatures, digital signatures, data messages and electronic files, and also regulates their use, the 
basic requirements and obligations of  certifying enterprises or those providing certification services 
                                                
12 Online information from the Technical Secretariat for Economic and Social Development Planning, 
viewed at: http://www.stp.gov.py/pnd/ejes -estrategicos/diagnosticos/apertura -de-mercados -y-presencia -
internacional . 
13 Tercer Informe del Presidente Horaci o Cartes al Congreso y a la Nación  (2016), July (p. 100). Viewed 
at: 
http://www.informepresidencial.gov.py/documen ts/14304/0/infomre+presidencial+2016+web.pdf/b7ced2a7 -
61fc-42d6-b9d4-c9ff832e5b4e . 
14 Plan Nacional de Desarrollo 2014 -2030. Viewed at: http://www.stp.gov.py/pnd . 
15 Online information from the STP, viewed at: http://www.stp.gov.py/v1/wp -
content/uploads/2016/08/Plan_Estrat%C3%A9gico_Institucional_STP_2015 -2018.pdf . 
16 Plan Nacional de Desarrollo 2 014-2030 (p. 36). Viewed at: http://www.stp.gov.py/pnd . 
17 Tercer Informe del Presidente Horacio Cartes al Congreso y a la Nación  (2016), July (pp. 91 -111). 
Viewed at: 
http://www.informepresidencial.gov.py/documents/14304/0/infomre+presidencial+2016+web.pdf/b7ced2a7 -
61fc-42d6-b9d4-c9ff832e5b4e . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  and the procedure for their approval and inspection.18 The Law was implemented by Executive 
Decree No.  7.369/11 and partially amended and expanded by Law No.  4.610/12, under which the 
MIC, th rough the Vice -Ministry of Trade, was designated as the implementing authority.19 Law 
No. 4.868/13 on electronic commerce was subsequently enacted in 2013 in order to regulate trade 
and procurement by electronic means or their technological equivalent. This  Law governs: 
(a) electronic and remote suppliers of goods and services established in Paraguay or abroad when 
the recipient of the products or services is domiciled in Paraguay; (b) intermediaries in the 
transmission of content via telecommunications netw orks; (c) electronic commercial 
communications; and (d) consumers or users. It does not prescribe registration requirements for 
remote suppliers of goods and services.  
2.15.   The Law on electronic commerce protects consumers or users by laying down obligations 
and responsibilities for suppliers of goods and services and for intermediaries. It establishes 
restrictions on the commercial activity of suppliers, who may not jeopardize public order, public 
health, national security, or the protection and confidentiality  of personal, financial and banking 
data, or infringe intellectual property rights. Suppliers are also subject to requirements such as 
transparency, security and the provision of information in a manner that is continuous, easy, direct 
and free of cost. Th e Law recognizes the validity and effectiveness of contracts entered into 
electronically or remotely, as well as the validity of electronic invoices for accounting and tax 
purposes. It provides for penalties in cases of infringement.  
2.16.   As the implementing au thority under the Law on electronic commerce, the MIC is 
empowered to issue regulations to ensure the effective interpretation, application, monitoring, 
evaluation and enforcement of its provisions. The MIC was invested with these powers under 
Executive De cree No.  1.165/14, designating as the technical body the Directorate -General of 
Digital Signature and Electronic Commerce, an administrative unit attached to the Vice -Ministry of 
Trade.20 Through this Directorate -General, the MIC is empowered to facilitate and promote 
e-commerce in Paraguay and to ensure full compliance of the above provisions of the Law. It is 
also competent to decide on remote and in -person inspections of the suppliers, to impose penalties 
following summary proceedings, and to receive and process queries, complaints and claims.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.17.   Paraguay is a founding member of the WTO and plays an active part in the work of the 
Organization, especially in negotiating groups such as the Cairns Group and the G -20 in the r ealm 
of agriculture. During the negotiations on the Trade Facilitation Agreement, Paraguay coordinated 
the Group of Landlocked Developing Countries.21 Paraguay is neither a party nor an observer to 
the plurilateral Agreements on Trade in Civil Aircraft or G overnment Procurement; nor does it 
participate in the Information Technology Agreement. Paraguay ratified the Trade Facilitation 
Agreement on 1  March  2016 (section 3.1.1). Paraguay's trade policies have been reviewed 
three  times; the latest review took pla ce in 2011.  
2.18.   Paraguay has bound 100% of its tariffs and accords at least MFN treatment to all its trading 
partners. It also grants tariff preferences to more than 15 countries through various preferential 
agreements (section 3.1.3). Trade negotiations are conducted in conjunction with MERCOSUR. 
Paraguay has never been involved in WTO dispute settlement as a complainant or as a 
respondent. During the period under review, it participated six times as a third party in disputes 
concerning: horticultural p roduct s and animal products (DS 455, 477, 478); chicke n meat and 
chicken products (DS 484); domestic support  for agricultural producers (DS 511); and measures 
concerning traffic in transit  (DS512). Paraguay submitted notifications to the various 
WTO committees (Tab le A2.1) during the review period. Some notifications are nonetheless still 
                                                
18 Law No.  4017/10 on the legal validity of electronic signatures, digital signatures, data messages and 
electronic files.  
19 The amendment is contained in Law No.  4.610/12 and Decree No.  7.369/11 contains the 
implementing Regulations.  
20 Decree No.  1.165/14 of 27  January  2014 adopting the  Regulations implementing Law No.  4.868/13 
on electronic commerce.  
21 Online information from the Ministry of Foreign Affairs, viewed at: 
http://www.mre.gov.py/v1/cromc/economias -pequenas .html; and the WTO, viewed at: 
https://www.wto.org/english/thewto_e/countries_e/paraguay_e.htm l. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  outstanding in fields such as domestic support in agriculture, import licensing procedures, customs 
valuation, subsidies and State trading enterprises. According to the authorities , Paraguay is 
currently updating the notifications of its agreements in the MERCOSUR and LAIA frameworks.  
2.19.   During the review period, Paraguay received technical assistance from the WTO and other 
intergovernmental agencies in the fields of trade in services,  trade facilitation, intellectual property 
and sanitary and phytosanitary measures.22 In the course of this review, trade facilitation and 
network and transport infrastructure were identified as priorities.  
2.3.2   Regional and preferential agreements  
2.20.   Paraguay is a  member of the Southern Common Market (MERCOSUR). It applies the 
MERCOSUR CET albeit with many exceptions, with the result that in 2017, the average tariff is 
about three percentage points below the CET (section 3.1.3). In September  2014, Paraguay 
ratified  the MERCOSUR Protocol of Montevideo on Trade in Services.23 
2.21.   Through its participation in MERCOSUR, Paraguay currently has free trade agreements with 
Chile (effective date: 1996), the Plurinational State of Bolivia (1997), Colombia, Ecuador and the 
Bolivari an Republic of Venezuela (2005), Peru (2006), India (2009), Cuba (2009), Israel (2010), 
Mexico (2011) and the Southern African Customs Union (SACU) (2016).24 MERCOSUR signed an 
agreement with Palestine in December  2011 and another with Egypt in 2016, but th ey were not 
yet in force in June. The review period saw the end of the transition periods for tariff reductions 
under the regional trade agreements with Chile, the Plurinational State of Bolivia, Cuba (all three 
in 2011) and Peru (in 2017).  
2.22.   The new agreeme nt between MERCOSUR and SACU is a Fixed Preferences Agreement with 
rates of 10%, 25%, 50% or 100% for a set number of products (about 951 tariff headings on 
either side). It covers goods but not services. It contains neither a transition period for tariff 
liberalization nor a tariff reduction timetable, as the preferences are fixed except for products for 
which preference margins of 100% (431 items) were accorded when the agreement was signed.25 
2.23.   At May  2017, MERCOSUR was engaged in negotiations with the Euro pean Union, EFTA and 
India. It was also negotiating the extension of the Fixed Preferences Agreement with SACU. 
Furthermore, it was engaged in exploratory talks with Australia and New Zealand, Canada, the 
Republic of Korea, Guyana, Japan, Lebanon, Suriname  and Tunisia.  
2.24.   Paraguay is a member of the Latin American Integration Association (LAIA), within which it 
has several partial scope agreements with Argentina, the Plurinational State of Bolivia, Brazil, 
Chile, Colombia, Ecuador, Mexico, the Bolivarian Repub lic of Venezuela, and Uruguay, among other 
countries. In 2013, Paraguay and Mexico agreed to negotiate a new economic complementarity 
agreement that will replace Partial Scope Agreement No.  38. 
2.25.   Paraguay is a signatory to the Protocol on Trade Negotiations,  along with Bangladesh, 
Brazil, Chile, Egypt, Israel, Republic of Korea, Mexico, Pakistan, Peru, Philippines, Serbia, Tunisia, 
Turkey and Uruguay. This Protocol is a partial scope agreement on goods and took effect in 1973.  
2.3.3   Other agreements and arrangement s 
2.26.   Paraguay is a beneficiary of the Generalized System of Preferences (GSP) schemes of 
Australia, Canada, the European Union, Japan, Kazakhstan, New Zealand, Norway, the Russian 
                                                
22 Online information from the WTO, viewed at: http://gtad.wto.org/ben_country.aspx?entityID=159 . 
23 Law No.  5.268/14 of 24  September  2014, available at: 
http://digesto.senado.gov.py/ups/leyes/8964.pdf . The text of the MERCOSUR Protocol of Montevideo on Trade 
in Services is available at: http://www.sice.oas.org/Trade/MRCSR/montevideo/pmontevideo_s.asp . 
24 The SACU comprises Botsw ana, Lesotho, Namibia, South Africa and Swaziland.  
25 These tariff headings are: birds' eggs; potatoes; head (cabbage) lettuce; sweet potatoes; bananas; 
animal fats; foie gras ; extract and essences of tea or mate concentrate; vinegar; sweetener; medicines; 
mastics; solutions for contact lenses; chemicals; plastics; towers and lattice masts; containers, tanks, vats and 
similar containers for any material; aluminium plates and strip; aluminium foil; other elevators or conveyors 
for goods; electric heaters; and  medical, surgical, dental or veterinary furniture.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Federation, Switzerland, Turkey and the United States.26 The main categories of Paraguayan 
products to have benefitted from preferential access under the GSP are bovine meat and offal; 
essential oils; vegetable oils; hides, skins and saddlery; cane sugar; wood charcoal; wood and 
wood products; oil -cake (soybean pellets); peanut; oilse eds; tobacco and beverages; and 
garments. The principal destinations are the European Union; the United States; Canada; Japan; 
Australia and New Zealand.  
2.27.   MERCOSUR, as a group, acceded to the Global System of Trade Preferences (GSTP) Among 
Developing Countr ies in 2006.  
2.28.   Paraguay recently joined the OECD Development Centre.27 
2.4  Investment regime  
2.29.   Paraguay has an open investment regime that encourages foreign direct investment. The 
law guarantees national treatment of foreign investment, the only exception being la nd ownership 
in border areas.28 Paraguayan laws offer tax rebates to investors and permit the full repatriation of 
capital and profits.  
2.30.   The main legislation governing foreign investment in Paraguay is the 1991 Law on 
investment (Law No. 117/91), which guara ntees equal treatment of foreign investors and the right 
to own real estate. This Law allows for recourse to international arbitration to settle disputes 
between foreign investors and the Government of Paraguay. The Law on investment incentives 
(Law No.  60/90) allows for full repatriation of capital and profits. Law No.  60/90 also accords 
investors a series of tax exemptions, including exemptions from corporation tax and VAT.29 There 
are no restrictions on the conversion or transfer of foreign currency, apar t from the requirement 
that banks report transactions worth more than US$10,000.  
2.31.   To supplement the Law on investment and enhance the investment climate, Paraguay 
passed three new laws during the period under review: (a) the Law on public -private partnershi p 
(Law No. 5.102/13); (b) the Investment Protection Law (Law No. 5.542/15); and (c) the Law on 
public works involving financing or turnkey contracts (Law No. 5.074/13).  
2.32.   The Law on public -private partnership aims to promote investment in public infrastructu re 
funded through partnerships between public and private entities. It further aims to promote 
investment in the production and delivery of public goods and services.30 The Law establishes the 
contractual basis for public -private partnerships, creates a liq uidity and guarantee fund, regulates 
the use of trust funds with State participation, establishes auditing and transparency mechanisms 
and the institutional framework for project coordination, and sets up a dispute settlement 
system.31 
2.33.   The Investment Protec tion Law (Law No. 5.542/15) seeks to promote investment in 
capital -intensive industries. It protects the repatriation of capital and profits, provides guarantees 
against administrative and judicial practices that may be deemed discriminatory, and provides for 
                                                
26 Online information from the WTO, viewed at: http://ptadb.wto.org/Country.aspx?code=600 ; and 
UNCTAD (2015), Generalized System of Preferences – List of Beneficiaries , 1 February, viewed at: 
http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf . 
27 Online information from the Office of the President of Para guay, viewed at: 
http://www.presidencia.gov.py/articulo/24564paraguayoficializasuingresoalaocde.html#.WLmXuG8rIdU . 
28 Law No.  5.232/05.  
29 Online information from the United States Department of State, viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/index.htm #wrapper . 
30 The Law was amended by Law No.  5.567/16 modifying Article 52 of Law No.  5.102/13 on the 
promotion of investment in public infrastructure and the expansion and upgrading of goods and services 
provided by the State . The Law's implementing Regula tions are contained in Decree No.  1.350/14 
implementing Law No.  5.102/13. As a result of the amendment, the Executive may now enter into agreements 
directly with the private sector, without congressional approval. In 2015, the Government of Paraguay awarde d 
its first contracts under the new law.  
31 Online information from the National Public Investment System, viewed at: 
http://www.stp.gov.py/v1/proyectos -de-participacion -publico -privada/#Marco_legal . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  fiscal incentives for up to 20 years (section 3.3.1). There is no prescribed investment minimum, 
and projects must be authorized through a joint Ministry of Finance/MIC resolution.32 
2.34.   The purpose of Law 5.074/13 is to authorize procedures and special and  complementary 
criteria for Law No. 1.045/83 establishing the public works regime, which may be used for the 
purposes of national and/or international open calls for tender and the award of contracts for the 
preparation of feasibility studies and works, th e supervision and execution of public works and the 
provision of services. The regime covers construction projects, the expansion or upgrading of 
roads, railways, bridges and ports that do not have pre -approved funding, and the special 
conditions set serve  to encourage public investment.  
2.35.   During the period under review, Paraguay continued to promote domestic and foreign 
investment by providing tax incentives, support for industrial sites as well as investment incentives 
under the relevant investment legislat ion.33 One of the Government's main concerns is narrowing 
infrastructure gaps and improving public governance by focusing on the development of specific 
sectors and activities such as transport and connectivity, the financial and energy sectors, as well 
as improving access to drinking water and public sanitation and boosting agricultural 
productivity.34 Efforts are also under way to make the incentives programme more effective. 
Encouraging public -private partnerships and creating a quality management system f or industrial 
sector incentives, for example, are in line with this approach.35 
2.36.   The presidential report submitted in July  2016 stated that investment under Law No.  60/90 
on investment incentives amounted to ₲2,497,568  million (roughly US$450  million) in 2015, with 
455 companies being established. More than 50 international instruments  were signed, which will 
lead to investment in infrastructure and connectivity projects, the development of the 
Paraguay -Paraná waterway, as well as energy integration.36 
2.37.   Paraguay has signed 27 bilateral investment treaties (BITs) and seven double taxation 
agreements. During the review period, new double taxation agreements were signed with 
Argentina and the United Arab Emirates (Table 2.2). The review period witnessed the entry into 
force of BITs between Paraguay and Italy and Paraguay and the United Arab E mirates, as well as a 
Trade and Investment Framework Agreement (TIFA) with the United States. This Agreement led to 
the establishment of the United States -Paraguay Bilateral Council on Trade and Investment, which 
will monitor trade and investment relations  between the two countries, work to improve the 
investment climate and diversify their bilateral trade in goods and services.  
2.38.   In 2017, the MERCOSUR member States signed a Protocol on intra -MERCOSUR cooperation 
and investment facilitation. This Protocol was  still pending ratification by the National Congress in 
May 2017. The agreement contains provisions on investment facilitation, as well as certain 
exclusions. The provisions on expropriation, for example, do not cover indirect expropriation.  
Table 2.2 Investment regime framework, 2016  
Institution/agreement   
International 
arbitration institutions  Paraguayan Arbitration and Mediation Centre; International Centre for Settlement of 
Investment Disputes (ICSID)  
                                                
32 Online information from the Senate of Paraguay, available at: 
http://digesto.senado.gov.py/ups/leyes/9084.pdf . Online information from the Nation al Public Investment 
System, viewed at: http://www.stp.gov.py/v1/proyectos -de-participacion -publico -privada/#Marco_legal . 
33 Paraguay accords investors a s eries of tax rebates under Law No.  60/90, including corporation tax 
and VAT exemptions. The temporary admission procedure, for example, permits duty -free entry of capital 
goods for public and private construction works.  
34 Plan Nacional de Desarrollo 2014 -2030. Viewed at: http://www.stp.gov.py/pnd . 
35 Plan Nacional de Desarrollo 2014 -2030 (p. 42),viewed at: http://www.stp.gov.py/pnd ; and online 
information from the MIC, avai lable at: http://www.mic.gov.py/mic/site/contenido.php?pagina=1&id=693 . 
36 Tercer Informe del Presidente Horacio Cartes al Congreso y a la Nación (2016) , July (pp. 26 and 29). 
Viewed at: 
http://www.informepresidencial.gov.py/documents/14304/0/infomre+presidencial+2016+web.pdf/b7ced2a7 -
61fc-42d6-b9d4-c9ff832e5b4e . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Institution/agreement   
Free trade 
agreements 
containing provisions 
on investment (date 
of entry into force)  MERCOSUR -Peru (2006); MERCOSUR -Colombia/Ecuador/Venezuela (2005); 
MERCOSUR -Egypt (not yet in force); MERCOSUR -India (2009); MERCOSUR -Mexico 
(2006); Canada -MERCOSUR Cooperati on Agreement (1998); MERCOSUR -Andean 
Community (1998); MERCOSUR Services Protocol (2005); MERCOSUR -Bolivia 
(1997); MERCOSUR -Chile (1996); MERCOSUR -European Community Cooperation 
Agreement (1999); Mercosur Investment Protocol (not yet in force); 
Paraguay -European Community Cooperation Agreement (1992); LAIA (1980)  
Bilateral investment 
treaties  Argentina (1969); Austria (2000); Belgium and Luxembourg (2004); Bolivia (2003); 
Chile (1997); Costa Rica (2001); Cuba (2002); Czech Republic (2000); El  Salvador 
(1998); France (1980); Germany (1998); Hungary (1995); Italy (2013); Korea, 
Rep. of (1993); Netherlands  (1994); Peru (1994); Portugal (2001); Romania 
(1995); South Africa (1974); Spain (1996); Switzerland (1992); Chinese Taipei 
(1992); United Arab Emirates (20 16); United Kingdom (1992); and Venezuela 
(1997).  
Other  Multilateral Investment Guarantee Agency (MIGA); and Overseas Private Investment 
Corporation of the United  States of America  
Double taxation 
agreements (date of 
entry into force)  Argentina (air, riv er, land and road transport, 2012); Belgium (air transport, 1987); 
Chile (air, river and road transport, 1995, and income and wealth tax, 2004); China 
(income tax, 2010); Germany (air transport, 1985); United Arab Emirates (2016), 
and Uruguay (air transpor t, 1993).  
Sources:  Online information from the United States Department of State, viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/investmentclimat estatements/index.htm#wrapper ; and 
Organization of American States (OAS), viewed at: 
http://www.sice.oas.org/ctyindex/PRY/PRYBITS_s.asp . For more information, see WTO document 
WT/TPR/S/245 /Rev.1 of 16  May 2011. Online information from UNCTAD, viewed at: 
http://investmentpolicyhub.unctad.org/IIA/CountryBits/164#iiaInnerMenu ; and Alianza Consultores, 
viewed at: http://www.leyes.com.py/disposiciones/categoria/4/46/convenios -para-evitar -doble -
imposicion.html . 
2.39.   Under Paraguayan legislation (Law N o. 117/91, Article 9), domestic and foreign investors as 
well as State entities that enter into contracts with foreign investors may submit their disputes to 
national or international arbitral tribunals. Paraguay is a member of the International Centre for  
Settlement of Investment Disputes (ICSID) and is a signatory to conventions that provide 
investors with ad hoc  arbitration mechanisms established under the rules of the United Nations 
Commission on International Trade Law (UNCITRAL) and the Inter -American  Commercial 
Arbitration Commission. The review period saw the conclusion of three arbitration cases involving 
Paraguay, which had been pending at the ICSID at the time of the preceding review.37 
2.40.   Investing State entities must submit their project profiles vi a the Single Window for Public 
Investment (VUIP) in the Technical Planning Secretariat (STP) for assessment and eventual 
registration.38 The STP's Public -Private Partnership Unit is responsible for registering public -private 
partnership (PPP) projects.39 Private investment generally does not require authorization prior to 
registration.40 In keeping with the requirements of the maquila programme, investments under the 
Maquila Law must be registered under the unified system for setting up enterprises (SUAE).  
2.41.   According to the World Bank's 2017 Doing Business report, Paraguay ranked 106th among 
190 countries in terms of ease of doing business, down six places over 2016. Paraguay improved 
its ranking as regards the use and introduction of electronic processing of ex port documents, 
protection of small investors, cross -border trade, and observance and performance of contracts. 
Nevertheless, its rating worsened as regards access to electricity, access to credit and tax 
collection. The report of the World Economic Forum ranks Paraguay 117th among 138 countries in 
the Global Competitiveness Index. Paraguay occupies a relatively good position when it comes to 
its macroeconomic environment (60/138) and financial market development (72/138).41 Similarly, 
                                                
37 Online information from the ICSID, viewed at: 
https://icsid.worldbank.org/en/Pages/cases/AdvancedSearch.aspx . 
38 Online information from the STP, viewed a t: http://www.stp.gov.py/v1/sistema -nacional -de-
inversion -publica/#PREGUNTAS_FRECUENTES . 
39 The STP carries out the relevant evaluation to determine th e admissibility of investment projects, 
using a standard process that is applied according to the type of investment project.  
40 Law No.  117/91 (Article 3).  
41 Online information from the World Economic Forum, viewed at: 
https://www.weforum.org/reports/the -global -competitiveness -report -2016-2017-1. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  according to the lates t information from the Getulio Vargas Foundation, Paraguay ranks first in the 
region in terms of its business climate.42 
2.42.   Paraguay became a signatory to the United Nations Convention against Corruption in 
June 2005. According to the World Bank, Paraguay's in vestment climate would benefit from 
greater transparency and less administrative discretion.43 In this regard, Paraguay introduced the 
Law on access to public information (Law No.  5.282/14) in 2014 and set up the anti -corruption 
whistleblowing portal for re porting alleged acts of corruption affecting public institutions, 
committed by government officials, representatives of private companies, or individuals.44 
 
 
 
                                                
42 Economia.com, viewed at: http://www.economia.com.py/negocios/en -la-region -paraguay -lidera -con-
el-mejor -clima-para-los-negocios -11553.html . 
43 Online information from the World Bank, viewed at: 
http://info.worldbank.org/governance/wgi/index.aspx#reports . 
44 Online information from the Government of Paraguay, viewed at: http://www.denuncias.gov.py/ssps ; 
and International M onetary Fund, viewed at: http://www.imf.org/external/pubs/ft/scr/2016/cr16116.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures a nd trade facilitation  
3.1.  Paraguay's customs procedures are mainly governed by the Customs Code 
(Law No. 2.422/04 of 5  July 2004) and its implementing Regulations (Decree No.  4.672/05 of 
6 January  2005).1 The National Customs Directorate (DNA), an autonomous b ody with its own 
legal status, is responsible for administering and supervising foreign trade procedures.2 Numerous 
executive decrees were issued during the period under review, together with resolutions and other 
DNA instruments regulating specific aspect s of customs procedures in areas such as that of 
approved economic operators (Decree No.  11.362/13), the simplified clearance procedure for 
minor imports (Decree No.  2.430/14), the simplified clearance procedure for cross -border imports 
(Decree No.  2.431/1 4) and the single window for imports (Decree No.  3.002/15) .3 
3.2.  Paraguay ratified the Protocol Amending Annex 1A to the Agreement Establishing the WTO to 
include the Agreement on Trade Facilitation and deposited its instrument of acceptance on 
1 March  2016. P araguay's commitments on category A measures under the Trade 
Facilitation  Agreement include the following (Articles within bracket s): advance rulings (3); appeal 
procedures  (4); detention (5.2); electronic payment (7.2); risk management (7.4); movement of 
goods intended for import under customs control (9); acceptance of copies (10.2); use of 
international standards (10.3); single window (10.4); preshipment inspection (10.5); use of 
customs brokers (10.6); rejected goods (10.8); temporary admission of goods /inward and 
outward processing (10.9); freedom of transit (11); and customs cooperation (12).4 
3.3.  The Customs Code (Article  18) requires that all importers be registered with the DNA. For 
this purpose, they must first be listed in the Single Register of Taxpa yers (RUC) and, if they are 
legal persons, in the Public Commercial Register as well and must possess a traders registration 
number.5 Importers whose companies have been registered in the Tax Regulations for Customs 
Tax Scheme (SOFIA) already meet the requ irement to register with the DNA.6 Simplified 
registration procedures apply to importers whose goods enter under the free zones regime or 
other special customs procedures.  
3.4.  Moreover, those who import products subject to special rules must be registered with  
authorities other than the DNA, for example, the Ministry of Public Health and Social Welfare 
(MSPBS), the Ministry of Industry and Trade (MIC) or the Ministry of Agriculture and Livestock 
(MAG) (Table 3.1). Such registration mostly concerns products such  as foodstuffs and beverages, 
products of animal or plant origin and medicines. Since the previous review, new registration 
requirements have been introduced for footwear; articles of iron and steel; articles of wire, iron 
and/or steel bars, towers and lat tice masts; washed and centrifuged salt; aerosol -type 
extinguishers; "gourmet" -type food and beverages; mobile telephones; plastic and biodegradable 
bags; and incandescent lamps. The purpose of such registration is usually to enforce specific 
regulations, although in some instances they have been introduced to prevent the entry of 
under -invoiced or smuggled goods.  
                                                
1 Amended by Decree No.  3.994/10 of 25  February  2010.  
2 Decision CMC No.  27/10 "on the MERCOSUR Cust oms Code" has not yet been transposed by Paraguay 
and has not entered into force within the MERCOSUR framework.  
3 Paraguay's legislation and other customs regulations may be viewed on the DNA's website at: 
http://www.aduana.gov.py/normativas . 
4 WTO document WT/PCTF/N/PRY/1 of 25  June 2014.  
5 The requirements for registering importers are listed in Article 19 of Decree No.  4.672 (Regulations 
implementing the Customs Code). The registration form for importer s can be found at: 
http://www.aduana.gov.py/uploads/archivos/SolicituddeRegistrodeFirmaenCarcterdeImportador -1_1.pdf . 
6 DNA Resolution No.  1/02 of 7  January  2002.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 3.1 Registration requirements for importers and their products, 2017  
Product  Authority  Perio d/ 
duration  Legal basis  
Sugar (HS 1701)  MIC Quarterly  Resolution No.  251/02 of 9  January  2002 and 
Resolution No.  631 of 8  August  2008 
Cement  MIC Annual  Decree No.  18.352/02 of 26  August  2002 and 
Resolution No.  962/06 of 28  December  2006 
Meat and offal o f fowls (NCM 0207.11.00; 
0207.12.00; 0207.13.00; and 0207.14.00)  MIC Annual  Decree No.  1.443/09 of 9  February  2009 and 
Resolution No.  74/09 of 17  February  2009  
Beef MIC Annual  Resolution No.  538/06 of 12  September  2006  
Aerosol -type extinguishers contai ning 
extinguishing foam wit h a maximum 
capacity of 250 ml  MIC Annual  Resolution No.  1.023/15 of 4  October  2015 
Wheat flour (NCM1101.00.00)  MIC Annual  Resolution No.  807/07 of 12  October  2007 
Mate ( Yerba mate ) MIC Annual  Decree No.  17.595/02 of 17  June 2002 
Made -up articles (NCM chapters 61, 62 and 
63) MIC Annual  Decree No.  1.421/09 of 5  February  2009, 
Resolution No.  129/15 of 16  February  2015  
Footwear  MIC Annual  Decree No.  10.350/12 of 21  December  2012 and 
Resolution No.  150/2015 of 24  February  2015 
Wiring insulated with polyvinyl chloride 
(PVC) for rated voltages not exceeding 
450/750 V  MIC Annual  Resolution No.  553/09 of 26  August  2009 and 
Resolution No.  181/10 of 22  March  2010 
Power cables with extruded insulation for 
rated voltages of 1.0 kV an d 3.0kV  MIC Annual  Resolution No.  1.014/14 of 10  October  2014 
Ordinary primary cells and batteries of zinc 
carbon and alkaline manganese  MIC Annual  Decree No.  4.926/10 of 18  August  2010 and 
Resolution No.  970/10 of 22  December  2010 
Articles of iron and  steel  MIC Annual  Decree No.  897/08 of 20  November  2008, 
Resolution No.  892/11 of 13  October  2011, 
Resolution No.  173/11 of 25  March  2011 and 
Resolution No.  781/11 of 15  September  2011 
Articles of wire, iron and/or steel bars, 
towers and lattice masts  MIC Annual  Resolution No.  1.043/14 of 21  October  2014 and 
Resolution No.  14/15 of 9  January  2015 
Lubricant oils and greases for automotive 
and industrial uses  MIC Annual  Resolution No.  741/13 of 1  August  2013 
Petroleum -based products  MIC For each 
impor t 
 Decree No.  10.911/00 of 25  October  2000, 
Decree  No. 10.397/07 of 27  May 2007 and 
Decree  No. 11.833/08 of 8  February  2008 
Cellular mobile telephone devices and their 
parts; only motherboards  MIC Annual  Decree No.  6.832 of 28  February  2017 
Plastic bags and biodegradable bags  MIC Annual  Resolution No.  353 of 27  March  2017 
Incandescent and fluorescent lamps  MIC Annual  Decree No.  7.103/17 of 27  April 2017 
Magnetic and optical media and raw 
materials for their manufacture 
(RISMOMPP)  DINAPI  Annual  Decree No . 603/2003 of 20  October  2003 
"Gourmet" -type food products, beverages 
and additives  MIC 
INAN Annual  Resolution No.  1.053/12 of 5  October  2012; 
Resolution S.G. No.  643/2012 (INAN)  
Washed and centrifuged salt  INAN 3 years  Decree No.  10.114/12 of 23  Novem ber 2012; 
Resolution No.  59/14 of 5  February  2014 
Salt for animal consumption  SENACSA  5 years 
(importers)  
10 years 
(products)  Law No.  2.426 of 28  July 2004; Decree 
No. 10.114/12 of 23  November  2012; Resolution 
No. 599/14 of 12  October  2014; Resolution 
No. 59/14 of 5 February  2014; Law No.  667 
of 18 September  1995 
Food products and beverages  MSPBS  
MAG 5 years  Law No.  836 of 15  December  1980; Decree 
No. 16.611/02 of 7  March  2002; Resolution 
No. 361/11 of 12  May 2011; Resolution 
No. 385/11 of 19  May 2011 
Medicines, proprietary pharmaceuticals 
(phytotherapeutic and homeopathic)  MSPBS  5 years  Law No.  1.119/97 of 21  August  1997; 
Decree  No. 10.262/12 of 17  December  2012 
Hygiene products for domestic use and 
cosmetics  MSPBS  5 years  Law No.  836/80 of 15  Decembe r 1980; 
Law No. 1.119/97 of 21  August  1997; 
Decree  No. 6.474/16 of 13  December  2016 
Medical, odontological and laboratory 
apparatus, instruments, equipment and 
devices  MSPBS  5 years  Law No.  1.119/97 of 21  August  1997; Resolution 
S.G. No. 669/16 of 19  Octobe r 2016  
Toxic or dangerous substances of the type 
used in household sanitary products (risk 
category  1) MAG 
MSPBS  Once  Law No.  836/80 of 15  December  1980, amended 
by Law No.  115/90 of 4  January  1991 
Phytosanitary products for agricultural use  SENAVE  5 years Law No.  2.459/04 of 4  October  2004; Law 
No. 123/91; Law No.  3.742/09 of 
10 December  2009; Resolution No.  446/06 of 
29 December  2006; Resolution No.  564/10 of 
14 October  2010 and Resolution No.  107/12 of 
1 August  2012 
Plant products and by -products  SENAVE  5 years  Law No.  2.459/04 of 4  October  2004; 
Decree  No. 139/93 of 3  September  1993; 
Resolution No.  202/10 of 10  July 2010 
Seeds  SENAVE  5 years  Law No.  385/94 of 11  August  1994 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Product  Authority  Perio d/ 
duration  Legal basis  
Products and by -products of animal origin  SENACSA  Annual  Law No.  2.426/04  of 28 July 2004; Decree 
No. 1.635/99 of 12  January  1999 
Products for veterinary use (pharmaceutical 
and biological products, animal feed)  SENACSA  10 years  Law No.  2.426 of 28  July 2004; Law No.  667 de 
18 September  1995 
Live animals and genetic material  SENACSA  Annual  Law No.  2.426/04 of 28  July 2004 
Live animals and genetic material of cattle, 
sheep and goats  SENACSA  Annual  Law No.  2.426/04 of 28  July 2004 
Products for recycling and non -hazardous 
waste  SEAM  Once Resolution No.  374/07 of 13  April 2007 
Ozone -depleting substances (ODS)  SEAM  Annual  Decree No.  12.685/08 of 11  August  2008; 
Resolution SEAM No.  255/15 of 1  July 2015 
Tyres  SEAM  Once Resolution No.  627/16 of 21  October  2016 
Firearms, ammunition, explosives and the 
like DIMABEL  Once Law No.  4.036/10 of 11  August  2010 
Note:  DINAPI – National Intellectual Property Directorate; DIMABEL – Armaments Directorate; INAN – 
National Food and Nutrition Institute; MAG – Ministry of Agriculture and Livestock; MIC – Ministry of 
Industry and Trade; MSPBS – Ministry of Public Health and Social Welfare; SEAM – Environment 
Secretariat; SENACSA – National Animal Quality and Health Service; SENAVE – National Plant and 
Seed Quality and Health Service; SENAD – National Anti -Drug Secretariat.  
Source:  WTO Secretariat , on the basis of information provided by the Paraguayan authorities.  
3.5.  The Customs Code (Article  22) makes it mandatory to use the services of a customs broker, 
approved and registered with the DNA, for all customs transactions, except in cases specified in  
the legislation.7 In order to be registered as a customs broker, in addition to other requirements, a 
candidate must be a Paraguayan national or a foreigner permanently resident and with proven 
roots in Paraguay. Brokers are jointly liable with the declar ants and responsible for payment of any 
fines owing as a result of customs errors or violations committed as a result of their actions.  
3.6.  The documents required to clear imports include the bill of entry; the commercial invoice; the 
bill of lading; the air w aybill or consignment note; and the certificate of origin where necessary, for 
example, in order to take advantage of tariff preferences. Depending on the nature of the goods, 
authorizations, permits, prior licences or sanitary, phytosanitary or health cer tificates may also be 
required (section 3.1.6). A sworn declaration of value has to be submitted if the value of the 
imports exceeds US$500.  
3.7.  Customs clearance is through the SOFIA computer system, which has been operating for 
almost two decades. It permits  direct interaction among the various users of customs services: 
customs brokers, transport companies, warehouse managers, customs officials and foreign 
trade -related bodies. With this system, both customs brokers and carriers can forward their import 
(or export) declarations or cargo manifests electronically. The system also permits customs duty 
and other import taxes to be paid by means of deposits in interlinked banks.  
3.8.  A simplified clearance procedure is available for "minor imports", i.e. those of a val ue not 
exceeding US$2,500 per import transaction, which can be cumulated up to a maximum of 
US$10,000 each month per importer. Under this procedure, a document called Despacho de 
Importaciones Menores  (minor imports clearance) is submitted to the Customs, accompanied 
solely by the commercial invoice or equivalent document. This procedure does not, however, waive 
the obligation to submit authorizations, prior licences, permits or certificates for goods which, by 
their nature, require these before they can be  imported.8 The import of agricultural products or 
garden produce is not eligible for the simplified procedure.9 
3.9.  Decree No.  2.431/14 of 17  October  2014 determines the requirements and criteria for 
applying the simplified customs procedure for cross -border imports. Under this procedure, natural 
persons resident in the border area may clear goods not exceeding US$150 per calendar month for 
personal or family use or consumption, provided that the goods are consumed in the border 
                                                
7 Cases where the services of a customs broker are optional are set out in Article  29 of the Customs 
Code.  
8 Decree No.  2.430/14 determining the requirements and criteria for applying the simplified customs 
procedure for minor imports , of 17  October  2014, which repealed Decree No.  13.749/01 of 6  June 2001.  
9 Listed in Annex I to DNA Resolution No.  670/14 of 17  December  2014.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  area.10 A document entitled Tráfico Vecinal Fronterizo  (Border Traffic) must be submitted to the 
Customs, together with the commercial invoice, Nota Fiscal (Tax Note) or equivalent document. 
Goods which by their nature must comply with specific provisions in order to enter Paraguayan 
territory must abide strictly by the respective rules.11 Products of plant origin in their natural state 
are not eligible for this procedure.12 
3.10.   Paraguay has had a single window for imports (VUI) in operation since 2010, allowing 
institutions involved in import procedures to interact with the DNA for the processing of import 
authorizations, permits and certificates. Pursuant to Decree No.  3.002 of 29  January  2015, the 
simplified electronic issuing system for import permits and licences was incorporated into the V UI 
and is managed and regulated at the operational level by the DNA. This Decree also lays down the 
obligation on all institutions issuing import authorizations and licences to use the VUI as the sole 
medium for this purpose and specifies a time-limit to allow such institutions to adapt to the 
system. DNA Resolution No.  722/15 regulated the relevant operational procedures. By early 2017, 
17 institutions had been incorporated into the VUI, of which eight had incorporated all their 
procedures, six had done so  in part and three were starting the incorporation process (Table 3.2). 
Three of the institutions incorporated were already using digital signatures. Two banks have also 
been incorporated in order to allow for electronic payment of tariffs and taxes applie d by the 
authorities.  
Table 3.2 Institutions incorporated into the single window for imports (VUI)  
No. in 
order  Institution  Level of integration  
Full Partial  Initial  
1 Central Laboratory of the Ministry of  Public Health and 
Social Welfare  X   
2 National Health Monitoring Directorate (DINAVISA)  X   
3 National Food and Nutrition Institute (INAN)  X   
4 National Forestry Institute (INFONA)  X   
5 National Plant and Seed Quality and Health Service 
(SENAVE)  X   
6 National Intellectual Property Directorate (DINAPI)  X   
7 National Institute of Technology, Standardization and 
Metrology (INTN)  X   
8 National Anti -Drug Secretariat (SENAD)  X   
9 Environment Secretariat (SEAM)  X   
10 National Customs Directorate  (DNA): On -board supplies 
and declaration of value   X  
11 Ministry of Industry and Trade (MIC)   X  
12 National Animal Quality and Health Service (SENACSA)  X   
13 Ministry of Foreign Affairs (MRE)    X 
14 Directorate -General of the Merchant Marine    X 
15 Ministry of Finance – Under -Secretariat of State for 
Taxation    X 
16 Municipality of Asunción   X  
17 Armaments Directorate (DIMABEL)   X  
Source:  National Customs Directorate.  
3.11.   Customs legislation provides for three channels for clearing goods: green c hannel 
(automatic clearance without any controls); orange channel (documentary checks); and 
red channel (documentary checks, physical inspection and verification of customs value). The 
channels are attributed using a risk -based selection system (SBR), form ally introduced in 
July 2015 and already being applied in some 30  customs offices in Paraguay. The SBR determines 
the channels for selection on the basis of previously determined risk parameters and profiles, 
taking into account, inter alia , information on  the type of goods, the tariff classification, the origin 
and destination, the importer, the exporter and the carrier. Declarations concerning goods selected 
for verification of customs value are automatically directed to the red channel.  
                                                
10 Goods for personal or family use or consumption are listed in Annex  I to DNA Resolution No.  671/14 
of 17 Decem ber 2014.  
11 Decree No.  2.431/14 of 17  October  2014.  
12 DNA Resolution No.  444/16 of 13  September  2016.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.12.   An average of 30 minutes is required to clear imports through the green channel; for the 
orange channel, it is 45 minutes; and for the red channel eight hours.13 Although the percentage 
has gradually fallen since 2011, half of all import transactions still go through the re d channel, 
while the percentage of imports cleared through the green channel has risen and in 2016 
accounted for 22% (Table  3.3). 
Table 3.3 Percentage of import clearance by selection channel, 2011 -2016  
 2011  2012  2013  2014  2015  2016  
Orange  14.49  16.07  20.52  25.24  25.83  28.35  
Red 76.20  70.63  66.50  61.01  58.19  49.63  
Green  9.31 13.30  12.98  13.76  15.98  22.02  
Source: Information provided by the National Customs Directorate.  
3.13.   Pursuant to the Customs Code (Article  128), claims or disagreements by importers as to 
quantity, quality or damage have to be addressed to the customs administrator before the goods 
leave the customs warehouse and within three working days from the date of notification of the 
action taken by the Customs. Once the goods have been released and left the customs warehouse, 
importers may only claim formal errors (arithmetical errors, differences in the rate of a customs 
tariff or customs valuation) indicated in the text of the customs clearance doc uments, other 
documents or other evidentiary material. Appeals against decisions taken by the customs 
administrator in open summary proceedings for customs violations may be made to the National 
Director of Customs within five working days from the date of  the relevant notification. The 
National Director of Customs is required to take a decision within a period of 20 working days, 
which in justified circumstances may be extended for a further 20 days. Appeals against decisions 
by the National Director of Cu stoms may be made to the Audit Tribunal.14 
3.14.   During the review period, Paraguay continued the reform process with a view to making 
customs administration more efficient and transparent and facilitating trade. In addition to the SBR 
and the VUI, other measures  adopted include implementation of the approved economic operator 
programme, the express consignment procedure, electronic transmission of air manifests, use of 
electronic seals, purchase of non -intrusive inspection equipment, digitalization of customs 
documents and training of human resources.15 
3.15.   The approved economic operators (OEC) programme was created in 2013 and provides for 
streamlined customs procedures for approved natural or legal persons participating in the 
international trade logistics chain and meeting the requirements prescribed by the DNA. 
Participation in the programme is voluntary.16 Participants enjoy advantages such as priority in 
inspection procedures, reduced physical inspections and the possibility of clearing imported goods 
in their own premises without having to complete the customs procedure at the port of entry. In 
early 2017, eight firms had been approved for streamlined import procedures under a pilot 
programme. The component on approval of security in the logistics chain (based on t he WCO's 
SAFE framework) has not yet been implemented, but it is hoped that the programme will be ready 
during 2017. In 2016, for OEC firms, customs clearance through the green channel was immediate 
on average and 2 hours and 32 minutes through the red cha nnel. Some 92.5% of declarations by 
OEC firms went through the green channel that year.  
3.16.   The express consignment procedure is covered in the Customs Code. Until 2014, procedures 
were entirely manual, but computerized procedures have been introduced since ad option of DNA 
Resolution No.  448/14 of 8  September  2014. The procedure applies to dispatches of 
correspondence, documents or goods which enter or leave customs territory carried by express 
delivery firms authorized for this purpose.17 The consignments are r egistered in advance, giving 
these firms priority for speedy clearance, without jeopardizing the necessary checks determined 
according to automated risk management. The authorities have indicated that, with the current 
express consignment procedure, it onl y takes one hour to clear consignments, which is entirely 
                                                
13 Information provided by the National Customs Directorate.  
14 Articles 374 to 376 of the Customs Code.  
15 Paraguayan Customs. Rendición de Cuentas . Nationa l Customs Directorate, 2013 -2015. Viewed at: 
http://www.aduana.gov.py/uploads/archivos/RENDICION_DE_CUENTAS_2013_2015.pdf . 
16 Decree No.  11.362/13 of 11  July 2013.  
17 For further information, see: http://www.aduana.gov.py/3276 -22-remesa -expresa.html . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  electronic and uses digital signatures. According to information from the DNA, express 
consignments processed rose from 230,000 in 2014 to 547,229 in 2016.  
3.17.   In June  2016, computerized implementation of the national customs transit system for 
controlling or annulling goods transit operations was approved.18 The system allows the transport 
agent to submit the transit application and receive the corresponding authorization electronically; 
it also allows t he cargo to be traced from the Customs at the entry point to the Customs at 
destination using a single consultation mechanism. In conjunction with electronic seals19, the 
system allows computerized routes to be established and controls the time taken for tr ansit. At the 
regional level, Paraguay has signed the International Land Transport Agreement20 and takes part 
in the work of the International Customs Transit Computerized System (SINTIA). Paraguay has 
also adopted Resolution MERCOSUR/GMC/ RES. 17/04 on comp uterization of international cargo 
manifests, customs transit declarations and monitoring of operations between MERCOSUR States 
Parties and participates in the Paraguay -Paraná waterway River Transit Scheme, which involves 
the use of electronic seals and on line monitoring of cargo.  
3.18.   Improvements in customs procedures and controls have made foreign trade transactions 
easier and have reinforced the DNA's revenue -collection capacity, which, according to information 
it provided, accounted for 42% of tax revenue i n 2016.  
3.1.2   Customs valuation  
3.19.   Paraguay has been applying the WTO's Customs Valuation Agreement since 2001 and has 
entered a reservation regarding the use of minimum values. At the internal legislative level, the 
Customs Valuation Agreement is applied by means of Decree No.  13.721/01 of 3  July 2001, which 
was notified to the WTO in 2004.21 The Customs Code (Article  261) provides that the customs 
value of imported goods is the tax base for imposing customs duty, as determined in the 
international agreements in for ce. By means of Decree No.  8.665 of 29  March  2012, Paraguay 
incorporated into its domestic legislation Decision CMC No.  13/07 (Rules on the application of 
customs valuation of goods) of the MERCOSUR Common Market Council.  
3.20.   The DNA alone is responsible for c ontrolling and verifying the value of imported goods22, a 
responsibility which it fulfilled through the Valuation Department and other competent technical 
units. A valuation fee amounting to 0.5% of the customs tax base has to be paid on all imported 
goods.  
3.21.   Paraguay is still using reference values as a tool for detecting and combating unfair trade 
practices. They are of a preventive nature and apply on an exceptional and temporary basis, 
although they do tend to be renewed frequently. During the period under  review, the DNA issued 
various resolutions to determine and update reference values for imports of clothing 
(NCM  chapters 61, 62 and 63) of Asian origin and/or source.23 Resolution No.  323 of 23  June 2016 
established the reference values for these goods, w hich came into effect in July  2016.  
3.22.   Reference values act as selectivity filters to determine cases where a detailed analysis of the 
declared customs value is required. If the declared value is lower than the reference value, 
although the importer may clear  the goods, he must provide the DNA with a cash bond covering 
the difference between the duty payable on the basis of the declared value and that which may be 
due on the basis of the reference value. The bond is refunded if the importer can provide 
documen ts justifying the price actually paid or payable within a period of 30 days; if not, the bond 
is encashed at the end of this period. The DNA may hold hearings a posteriori  for firms which have 
                                                
18 DNA Resolution No.  293 of 3  June 2016.  
19 Electronic seals are security devices used as locks on fre ight transport units, which transmit satellite 
and mobile telephone signals, enabling the transport units to be tracked by means of digitalized mapping. 
Decree No.  998/13 implemented the system.  
20 Concluded within the LAIA ambit among Argentina, the Plurin ational State of Bolivia, Brazil, Chile, 
Paraguay, Peru and Uruguay.  
21 WTO document G/VAL/N/1/PRY/1 of 21  September  2004.  
22 Article 262 of the Customs Code.  
23 Resolution No.  89/10 of 12  February  2010; Resolution No.  262/12 of 11  June 2012; Resolution 
No. 426/12 of 25  August  2012; Resolution No.  323/16 of 23  June 2016; and Resolution No.  460/16 of 
22 September  2016.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  decided to post a bond, in order to verify the authenticity of the documents used to justify the 
price.  
3.23.   DNA Resolution No.  436/09 of 8  July 2009 provides for the adoption of criteria for 
examining and justifying the data used to determine the transaction value for used motor vehicles. 
DNA Resolution No.  436 repealed D NA Resolution No.  194/07.  
3.1.3   Rules of origin  
3.24.   Paraguay does not have any non -preferential rules of origin24 and only applies preferential 
rules of origin in the context of LAIA and MERCOSUR, as well as under trade agreements it has 
ratified as a MERCOSUR State Party (Table 3.4).25 
Table 3.4 Criteria for preferential origin  
(% of f.o.b. value unless otherwise indicated)  
Agreement  General criteria  
Specific origin 
criteria  
Cumulation of 
origin  Inputs from third 
countr ies used in 
production  Maximum value of 
inputs from third 
countries used in 
assembly and 
mounting (%)  Maximum value 
of inputs from 
third countries 
in kits or 
assortments of 
goods (%)  Change in 
tariff 
classification  Maximum 
value (%)  
LAIA X 50 50-60a  X  
Regional economic complementarity 
partial scope agreement (AAP.CE)        
MERCOSUR (AAP.CE No.  18) X 40 40  X X 
MERCOSUR -Chile (AAP.CE N o. 35) X 40 40  X X 
MERCOSUR -Plurinational State of Bolivia 
(AAP.CE No.  36) X 40 40  X X 
MERCOSUR -Mexico (AA P.CE No.  55) X 40-50  7  X 
MERCOSUR -Peru (AAP.CE No.  58) X 40d 40d  X X 
MERCOSUR -Andean Communityb (AAP.CE 
No. 59) X 40 40 6 X Xc 
MERCOSUR -Cuba (AAP.CE No.  62) X 50 50 10  X 
Bilateral AAP.CE        
Argentina (AAP.CE No.  13) X 50 50-60a  X  
Venezuela (AAP.CE No.  64)  X 50 60a  X  
Agricultural partial scope agreement        
MERCOSURe-Cuba (AAP.A12TM No.  2) X 50 50-60a  X  
Regional tariff agreement agreement 
(AR.PAR)        
MERCOSURe-Cuba-Mexico (AR.PAR No.  4)  X 50 50-60a  X  
Preferential trade agre ement        
MERCOSUR -India  X 40  15  X 
MERCOSUR -Southern African Customs Union 
(SACU)f X 40  15 X X 
Free trade agreement        
MERCOSUR -Egypt (% of ex -factory price)g X 45  15 X X 
MERCOSUR -Israel (% of ex -factory price)  X 50  15  X 
MERCOSUR -State of Palestineg X 50  15  X 
a The figure of 60% applies to countries with a relatively lower level of development such as 
Paraguay.  
b Only Colombia, Ecuador and the Bolivarian Republic of Venezuela.  
c For the purposes of cumulation of origin, materials orig inating in the Plurinational State of Bolivia 
and Peru are also considered as originating from the exporting signatory party.  
d 50% from 2005 -2008; 45% from 2008 -2011 and 40% as of 2012.  
e States Parties (Argentina, Brazil, Paraguay and Uruguay) and Associ ated States (Plurinational State 
of Bolivia, Chile, Colombia, Ecuador and Peru).  
f The agreement came into force in April  2016.  
g Agreements pending ratification by Paraguay (at March  2017).  
Source:  Online information from LAIA, Consultas de Régimen de Ori gen por Paí s, viewed at: 
http://www.aladi.org/nsfaladi/r%C3%A9gorigtext.nsf/vpaisesR/paraguay ; SICE, Información sobre 
Paraguay : Acuerdos comerciales en vigor , viewed at: 
http://www.sice.oas.org/ctyindex/PRY/PRYagreements_s.asp ; and MERCOSUR Secretariat, Tratados, 
Protocolos y Acuerdos , viewed at: 
http://www.mercosur.int/t_generic.jsp?contentid=2639&site=1&channel=secretaria . 
                                                
24 WTO document G/RO/N/21 of 20  July 1998.  
25 Paraguay has notified the WTO of the MERCOSUR and LAIA rules of origin. WTO document G/RO/N/12 
of 1 October  1996.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.25.   In the economic complementarity partial scope agreements (AAP.CE) that Paraguay has 
signed as a MERCOSUR State Party and the bilateral a greements (with Argentina and the 
Bolivarian Republic of Venezuela, respectively), the LAIA general regime of origin applies in cases 
where the agreements do not contain any specific provisions or requirements on origin, which take 
precedence over the gene ral criteria. LAIA's general provisions on origin can be found in the 
consolidated and coordinated text of Resolution No.  78/87 of the Committee of Representatives of 
24 November  1987, adopted by Resolution No.  252/99 of 4  August  1999.26 In the case of 
Paraguay, considered to be a country with a relatively lower level of economic development within 
LAIA, the percentage of inputs from third countries is 60%.27 
3.26.   MERCOSUR has general and specific rules of origin. In 2015, Decision No.  01/09 of the 
Common Market C ouncil of 24  July 2009 entered into force, consolidating in a single text all the 
rules concerning MERCOSUR's regime of origin. Paraguay incorporated this Decision into its 
domestic legislation by means of Decree No.  7.057/11 of 1  August  2011. According to  the 
provisions in Decision No.  01/09, the following are considered as originating: (a) products wholly 
obtained from animals or plants, hunting or fishing, minerals, natural resources, inter alia , from 
one of the Parties; (b) products wholly processed in the territory of one of the Parties when 
materials originating in Parties have been solely and exclusively used for their processing; 
(c) products processed using materials not originating in the Parties and resulting in a change in 
tariff heading from tha t of the materials in question; (d) where the processing does not call for a 
change in tariff heading but the c.i.f. value of inputs from third countries does not exceed 40% of 
the f.o.b. value of the goods concerned; (e) goods resulting from assembly or m ounting in the 
territory of a Party, using materials originating in third countries, when the c.i.f. value of these 
materials does not exceed 40% of the f.o.b. value of the goods; or (f) capital goods with at least 
60% of regional value added.  
3.27.   In Paraguay' s case, Decision No.  01/09 grants the country differential treatment until 
31 December  2022 under which it suffices for the c.i.f. value port of destination or c.i.f. sea port of 
the inputs from third countries not to exceed 60% of the f.o.b. value of the goods in question.28 
Decision No.  01/09 also updates MERCOSUR's specific requirements of origin, compliance with 
which takes precedence over the general rules. The following are some of the products subject to 
specific origin requirements: milk, butter, oil , cotton, made -up articles, garden produce, yeast, 
ethyl alcohol, insecticides, fabrics, yarns, other carpets and floor covering, sports footwear, steel 
wire, profiles, milking machines and transformers.  
3.28.   Apart from Decision No.  01/09, the only other new ag reement containing preferential rules 
of origin ratified by Paraguay during the review period as a member of MERCOSUR was the 
Agreement between MERCOSUR and Southern African Customs Union, incorporated into domestic 
legislation by means of Law No.  4.560/12  of 23 January  2012.  
3.29.   Paraguay has applied the system for electronic management of the issue of certificates of 
origin since 2006, implemented pursuant to MIC Resolution No.  556/06 of 15  September  2006, 
and in mandatory use since January  2007. This Resoluti on was amended by Resolution No.  742/11 
of 13 September  2011 and supplemented by Resolution No.  912/15 of 20  August  2015.  
3.30.   The authorities empowered to issue certificates of origin are the MIC, its authorized regional 
offices (in the cities of Concepción an d Pedro Juan Caballero) and the bodies authorized by 
decree.29 The MIC's Directorate of Foreign Trade Operations is responsible for analysing the data in 
forms and, when appropriate, endorsing the application electronically, giving the body authorized 
the p ower to issue the corresponding certificate of origin (Article  3 of Resolution No.  556/06). 
Resolution No.  18/82 of 8  January  1982, as amended by Resolution No.  138/06 of 20  March  2006, 
in turn amended by Resolution No.  1.048/15 of 16  September  2015, regul ates the procedures for 
                                                
26 Consolidated and coordinated text on the LAIA General Regime of Origin. Viewed at: 
http://www.aladi.org/nsfaladi/J uridica.nsf/vresolucionescomite/D207FACADE7AF87B032567CC00555F7F/$FILE
/252.pdf . 
27 Third article of the consolidated and coordinated text of Resolution No.  78/87 of the LAIA Committee 
of Representatives, 24  November  1987.  
28 Article 5 of the Annex to Decisi on No.  01/09 of the Common Market Council of 24  July 2009.  
29 Decree No.  13.960/96 of 28  June 1996 designating the bodies authorized to issue certificates of origin 
for domestic products for export, as amended by Decree No.  1.512/14 and supplemented by Decr ee 
No. 2.827/14 of 22  December  2014.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  issuing certificates of origin. The authorities have indicated that they are working on digital 
certification of origin.  
3.1.4   Tariffs  
3.1.4.1   Structure  
3.31.   Paraguay's tariff is based on MERCOSUR's common external tariff (CET), with some 
exceptions ( see below), and is expressed in the MERCOSUR Common Nomenclature (NCM), which 
follows the Harmonized Commodity Description and Coding System (HS). Paraguay's applied tariff 
in 2017 (HS 2017) comprises 10,226 eight -digit lines and 24 tariff levels ranging f rom 0% to 
30%.30 Paraguay applies only ad valorem rates based on the c.i.f. value of the import. It had no 
temporary or variable levies on imports during the period under review.  
3.32.   The simple average of the MFN (most -favoured -nation) tariff applied in 2017 wa s 8.4%, 
slightly below the 8.5% recorded in 2010. The average MFN tariff on agricultural products 
(WTO  definition) is 9.9%; for non -agricultural products, the average is 8.2% (Table  3.5). The 
weighted average of applied import duties was 3.2% in 2017, lowe r than the 3.5% recorded in 
2011. Paraguay grants at least MFN treatment to all its trading partners.  
Table 3.5 Structure of MFN tariffs, 2010, 2015 and 2017  
(%) 
 2010 
(HS02)  2015  
(HS12)  2017  
(HS12)  
1. Total number of lines  9,806  10,031  10,226  
2. Non-ad valorem tariffs (% of all tariff lines)  0.0 0.0 0.0 
3. Non-ad valorem tariffs with no ad valorem equivalent (% of all tariff 
lines)  0.0 0.0 0.0 
4. Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
5. Duty-free tariff lines (% of all tariff lines)  16.7 16.0 16.0 
6. Average dutiable lines (%)  10.2 9.9 10.0 
7. Simple average  8.5 8.3 8.4 
8. Agricultural products (WTO definition)  10.0 9.8 9.9 
9. Non-agricultural products (including petroleum) (WTO definition ) 8.3 8.2 8.2 
10. Agriculture, hunting, forestry, fishing (ISIC 1)  7.2 7.3 7.2 
11. Mining and quarrying (ISIC 2)  3.1 3.1 3.1 
12. Manufacturing (ISIC 3)  8.6 8.4 8.5 
13. Raw materials  6.8 7.1 6.9 
14. Semi-finished products  8.3 8.3 8.4 
15. Finished prod ucts 8.9 8.6 8.6 
16. National tariff peaks (% of all tariff lines)a 0.2 0.7 0.2 
17. International tariff peaks (% of all tariff lines)b  21.6 20.0 19.9 
18. Overall standard deviation of applied rates  6.9 6.8 6.8 
19. "Nuisance" applied rates (% of all tariff lines)c 23.0 23.1 22.7 
20. Bound tariff lines (% of all tariff lines)  100.0  100.0  100.0  
a National tariff peaks are duties exceeding three times the overall simple average applied rate.  
b International tariff peaks are duties that exceed 15%.  
c Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.33.   As already indicated in the previous review, the structure of the tariff applied by Paraguay 
shows rela tively little tariff dispersion, with a coefficient of variation of 0.8. In 2017, 16.0% of all 
tariff lines were duty free (Chart 3.1), while lines with a tariff greater than zero but less than 5% 
accounted for 25.7% of the total. A tariff exceeding 20% ap plied to only 0.8% of all tariff lines.  
                                                
30 Paraguay's applied tariff rates are: 0; 2; 4; 5; 6; 7; 8; 9; 10; 11; 12; 13; 14; 15; 16; 17; 18; 19; 
20; 22; 25; 26; 28; and 30%.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 45 - 
 
  Chart 3.1 Frequency distribution of MFN tariff rates, 2017  
(16.0%)(25.7%)
(20.2%)
(18.2%)(19.1%)
(0.6%)(0.2%)
0102030405060708090100
05001,0001,5002,0002,5003,000
0 >0-5 >5-10 >10-15 >15-20 >20-25 >25Number of linesa%
Cumulateive %
Number of lines (% ofl total)
 
a The total number of lines is 10,226.  
Source:  WTO Secretariat calculations, based on data provided by the P araguayan authorities.  
3.34.   Only five HS headings (170112, 170113, 170114, 170191 and 170199) are subject to the 
maximum rate of 30%, while 22 headings (mostly of Chapter 52, cotton fabrics), and one heading 
of Chapter 87 (vehicles) attract a tariff of 25% to 2 8%.31 In 2017, the groups of products subject 
to the highest average tariffs were arms and ammunition (20%), footwear (18.6%) and textiles 
and made -up articles (16.8%) (Table 3.6).  
Table 3.6. Summary analysis o f the MFN tariff, 2017  
Product description  MFN 
Bound tariff 
rangea 
(%) Number 
of lines  Average  
(%) Range  
(%) Coefficient 
of 
variation  
(CV)  
Total  10,226  8.4 0 - 35 0.8 10 - 35 
HS 01 -24 1,304  10,1 0 - 30 0.5 10 - 35 
HS 25 -97 8,922  8.1 0 - 35 0.9 10 - 35 
By WTO category       
Agricultural products  1,047 9.9 0 - 30 0.5 10 - 35 
 - Animals and products of animal origin  133 7.9 0 - 16 0.6 10 - 35 
 - Dairy produce  37 14.9 12 - 16 0.1 20 - 35 
 - Fruit, vegetables and garden produce  280 9.4 0 - 25 0.5 10 - 35 
 - Coffee and tea  30 12.2 6 - 20 0.3 15 - 35 
 - Cereals and cereal preparations  140 11.2 0 - 20 0.5 10 - 35 
 - Oilseeds, fats and oils and their by -products  125 7.6 0 - 14 0.5 10 - 35 
 - Sugar and confectionery  23 18.8 6 - 30 0.3 30 - 35 
 - Bevera ges, alcoholic liquids and tobacco  73 16.5 0 - 20 0.2 10 - 35 
 - Cotton  7 6.3 6 - 8 0.1 35 - 35 
 - Other agricultural products n.e.s.  199 7.8 0 - 14 0.6 10 - 35 
Non-agricultural products (including 
petroleum)  9,179  8.2 0 - 35 0.8 10 - 35 
 - Non-agricul tural products (excluding 
petroleum)  9,152  8.2 0 - 35 0.8 10 - 35 
 - - Fish and fish products  366 10.1 0 - 16 0.3 15 - 35 
 - - Mineral products and metals  1,218  9.4 0 - 22 0.6 10 - 35 
 - - Chemicals and photographic products  3,212  6.6 0 - 35 0.8 10 - 35 
                                                
31 Decision MERCOSUR/CMC/DEC No.  17/09 increased the CET on a group of dairy products (H S 0402, 
0404 and 0406) to 28%. Paraguay was, however, authorized to continue applying the tariffs on these products 
at the previous rates, ranging from 14% to 16%.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Product description  MFN 
Bound tariff 
rangea 
(%) Number 
of lines  Average  
(%) Range  
(%) Coefficient 
of 
variation  
(CV)  
 - - Wood, wood pulp, paper and furniture  406 9.9 0 - 18 0.6 10 - 35 
 - - Textiles  832 15.9 0 - 26 0.3 10 - 35 
 - - Clothing  251 20.5 20 - 25 0.1 20 - 35 
 - - Leather, rubber, footwear and travel 
articles  234 12.4 0 - 25 0.4 10 - 35 
 - - Non-electri cal machinery  1,132  2.1 0 - 20 2.2 10 - 35 
 - - Electrical machinery  606 5.9 0 - 22 1.1 10 - 35 
 - - Transport equipment  216 6.3 0 - 28 1.1 10 - 35 
 - - Non-agricultural products n.e.s.  679 9.1 0 - 20 0.9 10 - 35 
 - Petroleum  27 0.4 0 - 6 3.6 35 - 35 
By ISIC sectorb      
Agriculture and fishing  527 7.2 0 - 25 0.6 10 - 35 
Mining and quarrying  127 3.1 0 - 10 0.6 10 - 35 
Manufacturing  9,571  8.5 0 - 35 0.8 10 - 35 
By HS section       
 01 Live animals and products of animal origin  515 9.1 0 - 16 0.4 10 - 35 
 02 Products of plant origin  404 7.9 0 - 25 0.5 10 - 35 
 03 Fats and oils  74 9.5 4 - 12 0.2 15 - 35 
 04 Food preparations, etc.  311 14.6 0 - 30 0.3 10 - 35 
 05 Mineral products  207 2.4 0 - 6 0.8 10 - 35 
 06 Products of the chemical and related 
industries  3,020  6.4 0 - 35 0.8 10 - 35 
 07 Plastic and rubber  424 9.9 0 - 18 0.6 10 - 35 
 08 Hides and skins  113 10.5 2 - 20 0.5 35 - 35 
 09 Wood and articles of wood  157 7.9 2 - 14 0.5 20 - 35 
 10 Wood pulp, paper, etc.  222 10.4 0 - 16 0.5 10 - 35 
 11 Textiles and their manufactures  1,055  16.8 0 - 26 0.3 10 - 35 
 12 Footwear and headgear  70 18.6 6 - 25 0.2 35 - 35 
 13 Articles of stone  217 9.6 0 - 20 0.4 20 - 35 
 14 Precious stones, etc.  64 9.3 0 - 18 0.6 10 - 35 
 15 Base metals and articles of  base metal  739 11.4 0 - 22 0.5 10 - 35 
 16 Machinery and appliances  1,765  3.6 0 - 22 1.6 10 - 35 
 17 Transport equipment  229 6.1 0 - 28 1.1 10 - 35 
 18 Precision instruments  450 7.0 0 - 20 1.1 15 - 35 
 19 Arms and ammunition  18 20.0 20 - 20 0.0 30 - 35 
 20 Miscellaneous manufactures  165 14.7 0 - 20 0.4 20 - 35 
 21 Works of art, etc.  7 4.0 4 - 4 0.0 25 - 35 
By stage of processing       
First stage of processing  1,046  6.9 0 - 25 0.6 10 - 35 
Semi-processed products  3,879  8.4 0 - 35 0.7 10 - 35 
Fully processed products  5,301  8.6 0 - 28 0.9 10 - 35 
a The bindings are shown in the HS2002 classification and the applied rates in the HS2017 
classification, so there may be differences between the number of lines in the analysis.  
b ISIC (Rev.2), excluding e lectricity (one line).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.35.   Although Paraguay has applied the MERCOSUR CET since 1995, it also has a large number 
of exceptions. These correspond to around 26% of tariff lines and can in principle result in tariffs 
higher or lower than the CET. In Paraguay's case, the exceptions are usually subject to rates lower 
than the CET. Paraguay's average applied tariff (8.4%) is, therefore, lower than the MERCOSUR 
CET (11.5%).  
3.36.   The exceptions  to the CET are covered by Decisions CMC No.  7/94, No.  68/00 and 
No. 31/03 and amendments thereto, which allowed Paraguay to maintain lists of 399, 100 and 
150 NCM tariff lines with levels distinct from those in the CET. Decision CMC No.  58/16 of 
16 Decemb er 2010 grouped these lists into a single one, called the National List of Exceptions 
(LNE), which contains 649 NCM headings and can be revised by up to 20% twice yearly. In 2015, 
the LNE listed 709 tariff codes. Decision CMC No.  26/15 extended the time-limit for the LNE up to 
31 December  2023. Decree No.  6.655/16 of 30  December  2016 incorporated Resolution GMC 
No. 26/16 approving the CET adjusted to HS2017 into Paraguay's legislation. The annex to this 
Decree identifies the LNE in force.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.37.   Paraguay and the o ther members of MERCOSUR also benefit from lists of exceptions to the 
CET identified as capital goods  (BK) and informatics and telecommunications goods (BIT). Decision 
CMC No.  25/15 allows Paraguay to apply a 0% tariff until 31  December  2021 and 2% until 
31 December  2023 on goods in the BK list. In 2016 (the latest information available), the BK list 
included 1,207 eight -digit tariff lines. Decision CMC No.  25/15 also allows Paraguay to apply tariffs 
of 2% and 0% on goods identified as BIT until 31  December  2023. At the time of drafting this 
report, this list included 395 headings. Both lists (BK and BIT) appear in the annex to Decree 
No. 6.655/16.  
3.38.   Decision MERCOSUR/CMC/DEC No.  18/09 authorizes any member country to apply a tariff 
other than the CET for a pe riod of up to two years, in line with its WTO obligations. Resolutions 
GMC 69/00 and 08/08 allow States Parties to apply temporary reductions in import duty for certain 
CET tariff headings, with defined terms of validity and limited to quotas in order to r emedy 
problems caused by any unexpected imbalance in supply and demand when supplies are short in 
MERCOSUR. This measure may be applied to a maximum of 45 tariff headings.  
3.39.   Decision CMC No.  28/15 authorizes States Parties to apply rates other than the CET u p to 
the maximum tariff bound in the WTO until 31  December  2021 for a list of NCM tariff headings 
corresponding to the toys category. Paraguay maintains the rates previously applied. Decision CMC 
No. 29/15 increased the CET on peaches in syrup (HS 200870) to 35% up to 31  December  2023. 
Paraguay was, however, authorized to continue applying the rate of 14%. Decision CMC No.  30/15 
increased the CET on a group of dairy products (HS 0402, 0404 and 0406) to 28% until 
31 December  2023. Paraguay, however, continue s to apply tariffs on these products at rates 
of 14% to 16%.  
3.40.   The sugar and automotive sectors have not yet been incorporated into the MERCOSUR 
Customs Union, so in each State Party they are subject to the national tax regime until the 
respective community policy is adopted. The rates applied by Paraguay are shown in Table 3.7.  
Table 3.7. Paraguay's tariff exceptions to the CET, 2015  
  
No. of NCM 
tariff 
headings  
Minimum 
tariff level 
(%) 
Maximum 
level (%)  
Average  
national 
tariff  
Average 
CET 
Tariff 
Decree in 
force  
MERCOSUR 
exception  
National List of 
Exceptions  LNE 709 0 25 8.1 17 8103/11  Up to 
1 January  2024 
Sectoral List  
Telecommunications  BIT 395 0 2 1.2 7.9 8103/11  1 January  2024 
Sectoral List  
Capital goods  BK 1,207  0 14 0.4 10 8103/11  1 January  2024 
Non-harmonized 
sectors  Motor vehicles 
outside the area  264 0 28 7.8 16.59  8104/11   
Motor vehicles 
inside the area  251 2 22 5.7 16.59  8104/11  
Sugar  5 30 30 30 30 8104/11  
Source: Information provided by the  authorities.  
3.1.4.2   Tariff bindings  
3.41.   Paraguay has bound all its tariff lines at rates that range from 10% to 35%. The bindings 
are currently expressed in the HS 2002 classification and all lines are ad valorem  (Schedule XCI 
Paraguay – WT/Let/574).  
3.42.   Paraguay's nati onal tariff has some 80 lines on which the applied rate exceeds the bound 
rate. The Paraguayan authorities have indicated, however, that in all these cases the WTO bound 
rate is applied. Likewise, the bound rate is applied to 27 lines corresponding to chem icals, which 
were bound at two levels depending on use (15% and 10%), even if the applied tariff appears at a 
single level (14%) which exceeds one of the bound rates.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.1.4.3   Tariff concessions  
3.43.   Tariff concessions and exceptions apply under the various customs proc edures which grant 
special treatment for exports, the investment regime and the raw materials regime. Tariff 
concessions are also given under the national automotive regime, established in 1998, which 
provides tariff exemptions for various inputs used in t he automotive industry and also grants tariff 
reductions for a range of automotive products. Tariff concessions are also used to boost tourism. 
Tariffs are waived on the import of new or used vehicles with flex fuel technology (Article  9 of 
Decree No.  3.667/09 of 17  December  2009) and new hybrid and electric vehicles (Law No.  5.183 
of 22 May 2014, amending Law No.  4.601/12).  
3.44.   Paraguay grants tariff concessions under the raw materials regime, which is governed by 
Decree No.  11.771/00 on the import of raw mate rials and inputs duty free if it is shown that these 
raw materials and inputs are to be used as such in the production process, there is no domestic 
production of the raw materials or inputs in question and the import value is at least US$1,500. 
The purpos e is to promote investment and boost existing industries by freeing tariffs, improving 
the industries' terms of competitiveness as a source of jobs and value added and, especially, to 
foster the creation and growth of SMEs.32 Any industry in Paraguay regist ered as such with the 
MIC is eligible for these concessions.  
3.45.   Under the regime to promote and develop high -tech products, covered by Decree 
No. 11.961/08 of 25  March  2008, tariff concessions are granted for the import of raw materials 
and inputs intended fo r use in high -tech goods. This regime is not operating, however, because it 
has not yet been regulated.  
3.1.4.4   Tariff preferences  
3.46.   As a member of MERCOSUR, Paraguay gives tariff -free access to the majority of imports 
from Argentina, Brazil and Uruguay. It also gra nts preferences as a participant in LAIA, either 
through the regional preferential tariff (PAR) scheme or through economic complementarity 
agreements (ACE). Paraguay has ACEs with Chile, the Plurinational State of Bolivia, Peru and Cuba 
(ACE Nos.  35, 36, 5 8 and 62, respectively), as well as with Colombia, Ecuador and the Bolivarian 
Republic of Venezuela (ACE No.  59). Mexico also receives  preferences  under Partial Scope 
Agreement No.  38 on renegotiating the historical heritage. In addition, preferences are g ranted to 
Israel under the Free Trade Agreement (FTA) endorsed by MERCOSUR, to India under the 
Preferential Trade Agreement (PTA) and to countries belonging to the Southern African Customs 
Union under the MERCOSUR -SACU PTA.  
3.47.   Members of the LAIA regional pre ferential tariff (PAR) scheme grant a preferential tariff 
reduction of 20% on imports from other members at the same level of development, a lesser 
reduction on imports from countries with a relatively higher level of development, and a greater 
reduction o n imports from countries with a relatively lower level of development.33 As a member 
with a relatively lower level of development, Paraguay gives reductions of 20%, 12% and 8% to 
other LAIA members, according to their economic development, although there is  a list of 
exceptions to the granting of preferences. For countries such as Paraguay, this list may contain up 
to 1,920 LAIA nomenclature (NALADI) tariff headings, mostly products such as organic chemicals, 
wood, charcoal and articles of wood, inorganic ch emicals, animal or plant fats and oils, articles of 
apparel and clothing accessories.34 
3.48.   Paraguay grants tariff -free entry in respect of almost all tariff lines for imports from Chile 
and the Plurinational State of Bolivia (Table 3.8).  
                                                
32 Online information from the MIC, viewed at: http://www.mic.gov.py/v1/node/106 . 
33 Within the LAIA framework, Paraguay, the Plurinational State of Bolivia and Ecuador are considered to 
be countries with a lower level of economic development.  
34 Regional Agreement No.  4, Second Amending Protocol.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 3.8 Summary analysis of preferential tariffs, 2015  
 Total  WTO categories  
Agricultural products  Non-agricultural products  
(excluding petroleum)  
Average  
(%) Duty -free 
lines  
(%) Average  
(%) Duty -free 
lines  
(%) Average  
(%) Duty -free 
lines  
(%) 
Plurinational State of 
Bolivia  0.0 99.9 0.0 99.8 0.0 99.9 
Chile 0.0 99.9 0.0 99.8 0.0 99.9 
Colombia  0.5 85.1 0.9 84.5 0.5 85.2 
Cuba 5.7 36.1 7.0 27.9 5.6 36.9 
Ecuador  0.8 89.5 1.7 77.7 0.7 90.8 
India 8.5 16.4 9.9 8.8 8.4 17.0 
Israel  2.7 42.5 2.0 44.5 2.8 42.1 
Mexico  7.5 18.4 8.9 16.0 7.4 18.5 
Panama  7.7 16.6 9.4 8.8 7.6 17.2 
Peru 0.2 95.6 0.5 88.7 0.1 96.4 
Bolivarian Republic of 
Venezuela  0.5 86.0 0.6 86.1 0.4 86.0 
MERCOSUR  0.1 99.1 0.2 99.3 0.1 99.1 
Source:  WTO Secr etariat estimates, based on data provided by the authorities.  
3.49.   As regards MERCOSUR's agreements with other Andean countries, in 2015 Paraguay 
granted an average preferential tariff of 0.2% for imports from Peru, 0.5% for those from the 
Bolivarian Republic o f Venezuela, 0.5% for those from Colombia and 0.8% for those from Ecuador. 
The preferences in the agreement with Peru will cease to apply at the end of 2017; those in the 
agreement with other Andean Community countries (except for the Plurinational State o f Bolivia, 
which have already ended) will terminate in 2018.  
3.50.   As a member of MERCOSUR, Paraguay approved MERCOSUR's Protocol of Accession to the 
Agreement on the Global System of Trade Preferences Among Developing Countries (GSTP). As at 
December  2016, howe ver, Paraguay was not granting GSTP preferences.  
3.1.5   Other charges affecting imports  
3.51.   Value added tax (VAT) applies to the sale of both imported and domestic goods.35 Pursuant 
to Law No.  5.061 of 4  October  2013, the VAT rate generally applied is 10%, while a red uced rate 
of 5% applies to specific products, as indicated in Table 3.9. The Executive is authorized to 
increase, and to determine, different rates ranging from 5% to 10%. VAT applied to interest, 
commission and charges on loans granted by intermediation i nstitutions regulated by Law 
No. 861/96 was increased from 5% to 10% in 2013.  
Table 3.9 Rates of value added tax, 2017  
Products  Rates %  
General VAT  10 
Leasing and sale of real estate  5 
Basic products (rice,  beans, edible oils, mate, milk, eggs, raw meat, flour and iodized salt); 
virgin vegetable oil  5 
Agricultural products, fruit, garden produce in the natural state and live animals;  goods 
derived from hunting and fishing whether or not live  5 
Pharmaceuti cals 5 
VAT on tourism  1.5 
Source:  Law No.  125/91, Law No.  5.061/13 and Decree No.  6.406/05.  
                                                
35 Law No.  125/91 (Book III, Title I) of 9  January  1992, as amended by: Law No.  2.421/04 of 
5 July 2004, Law No.  5.061/13 of 4  October  2013, Law No.  5.143/13, Decree No.  1.030/13 of 
27 December  2013 and Decree No.  1.440/14.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.52.   The following are exempt from VAT: import and domestic sale of foreign currency and public 
and private securities, including the sale of stocks and shares in comp anies; inherited estate; 
assignment of receivables; capital goods produced by domestic manufacturers for direct use in 
industrial or agricultural production cycles carried out by investors covered by Law No.  60/90 of 
26 March  1991; books and periodicals in  hard copy or on electronic media; reviews of educational, 
cultural or scientific interest; goods of artistic or popular value produced by craftsmen; portable 
computers and their accessories to be donated to children and adolescents; goods donated to 
non-profit-making foundations recognized as such by the competent government authorities; 
petroleum -based fuels; and tickets and slips used for gaming or betting.36 The sale of medicines 
covered by Law No.  77/92 of 27  November  1992 for the treatment of cancer, d iabetes and organ 
transplants is also exempt from VAT.  
3.53.   For imported goods, the tax base for VAT is the customs value (c.i.f.) expressed in foreign 
currency, plus customs taxes (even if their application has been suspended) and the other taxes 
payable befor e goods can be withdrawn from the Customs, as well as internal taxes. For occasional 
importers, the tax base is increased by 30%.37 In 2016, the total VAT collected accounted for 
53.7% of all tax revenue; VAT collected by the Customs amounted to 19.9% of ta x revenue that 
year.38 
3.54.   The selective consumption tax (ISC) is imposed on the first sale of domestic products and 
on the import of goods not deemed to be essential, such as tobacco, alcoholic beverages, perfume, 
jewellery, etc., and environmentally harmful p roducts such as petroleum -based fuels. Law 
No. 2.421/04 (as amended by Law No.  4.045/10) determines the maximum rates for products 
subject to the ISC and empowers the Executive to determine different rates for different types of 
product within each heading  (Table 3.10). During the review period, the rates applied to cigarettes 
and other tobacco products were raised from 13% to 16%.39 
3.55.   For imported goods, the tax base for the ISC consists of the customs value expressed in 
foreign currency, plus customs duty an d the other taxes payable prior to customs clearance, 
excluding VAT. For fuel (except for certain types of diesel fuel40), the tax base is the selling price 
to the public. ISC accounted for some 13.6% of total tax revenue in 2016.  
Table 3.10 Selective consumption tax (ISC), 2017  
Product  Rate (%)  
Petroleum -based fuels  
Naphtha  
Gas oil  
Kerosene, fuel oil, liquefied gas  
Turbo fuel   
20 to 38  
18 
10 
0 
Tobacco, cigarettes and cigars  16 
Beverages (including alcoholic beverages)  5 to 13  
Alcohol (absolute, spirit or fuel alcohol)  10 
Perfumes and beauty preparations  5 
Precious metals and watches  5 
Arms, ammunition, parts and accessories therefor  5 
Machinery and appliances  1 
Toys and musical instruments  0 
Source:  Decree No.  4.344/04, Decree No.  5.158/10, Decree No.  4.694/15 and Decree No.  4.693/15.  
3.56.   Other charges have to be paid on imports in addition to the taxes indicated: valuation tax; 
consular fee; INDI tax; IT tax; National Intellectual Property Directorate (D INAPI) tax; and the tax 
of the National Civil Aviation Directorate (DINAC) tax (Table 3.11). DINAC also applies import 
taxes at different rates for keeping, receiving and storing cargo entering Paraguay (Table A3.1).  
                                                
36 This list is not exhaustive, see  Article  3 of Law No.  5.061/13.  
37 Article 12 of Decree No.  1.030/13.  
38 Information provided by the Ministry of Finance.  
39 Decree No.  4.694/15 of 29  December  2015.  
40 For type  3 gas oil/diesel fuel and marine diesel, the tax base is determined according to a  presumed 
value, which was increased to ₲3,777.78/litre by Decree No.  5.057/16 of 18  March  2016.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 3.11 Other charges on imports, 2017  
Charge  Amount  Legal basis  
Valuation tax : applied to all import transactions for the 
supply of customs services  0.5% of the taxable c.i.f. value  Law No.  2.422  
(Art. 263)  
Consular fee : compulsory endorseme nt of documents 
required for importation (commercial invoice, cargo 
manifest, bill of lading, etc.)  Amount in dollars according to 
the transaction  Law No.  4.033/10  
(Chapter 5)  
INDI (National Indigenous Institute) tax : to 
finance the Paraguayan Indigenou s Institute  7% of the consular fee  Law No.  904/81  
(Art. 58)  
IT tax : for use of the SOFIA system  For formalizing import or 
export clearance:  
<US$2,500 = 0.5/daily wagea 
<US$5,000 = 1/daily wage  
>US$5,000 = 2.5/daily wages  DNA Resolution 
No. 549/14  
DINA C (National Civil Aviation Directorate) tax : for 
imports entering by air irrespective of the customs 
admission procedure  General = 1.3% of taxable 
value  
Dangerous goods = 2.5%  Decree No.  8.701/12  
Decree  No. 4.333/15  
DINAPI (National Intellectual Propert y 
Directorate)  tax: right to remuneration for private 
copies  General = 0.5% of taxable 
value for magnetic and optical 
media  Decree No.  4.212/15  
a Minimum daily wage 2017: ₲75,558.  
Source:  WTO Secretariat, on the basis of information provided by the Ministry of Finance.  
3.1.6   Import prohibitions, restrictions and licensing  
3.57.   Pursuant to Law No.  1.095/84, Paraguay bans the import of articles that might affe ct 
national security, public order, public health, animal or plant health, morals or decency 
(Table  3.12). This Law also empowers the Executive to ban imports temporarily in order to protect 
and promote Paraguay's economic and social development, maintain the trade and payments 
balances, or counteract unfair competition from foreign products.41 
Table 3.12 Prohibited imports, 2017  
Product  Reason invoked  Legal basis  
African bees ( Apis mellifera adansonil)  Protect ion of health and 
the environment  Law No.  2.426/04 of 
28 July 2004; Law No.  667/77 
and its implementing Decree 
No. 25.045/87 of 
19 October  1987  
Swine, products, by -products and  
derivatives of domestic or wild pigs originating in 
areas where there is Afr ican swine fever and 
vesicular swine disease  Human and animal 
health  SENACSA Resolution 
No. 2.141/04 of 9  June 2014; 
MAG Resolution No.  175/78 of 
21 June 1978 
Live animals, genetic material of cattle, sheep 
and goats, products and by -products from 
countri es affected by bovine spongiform 
encephalitis (BSE)a Protection of human and 
animal health  SENACSA Resolution 
No. 5.992/12 of 
28 February  2012; Decree 
No. 12.126/01 of 
7 February  2001; Resolution 
No. 2/01 of 19  January  2001; 
Decree No.  21.517/03 of 
21 July 2003 
Live birds, products, by -products and genetic 
material  Protection of human and 
animal health  Resolution No.  23/04 of 
19 May 2004; Resolution of the 
Vice-Ministry of Livestock 
No. 08/04 of 3  February  2004 
Used footwear  Sanitary protection  Decree No. 6.432/05 of 
26 September  2005 
Chloramphenicola Protection of human 
health  MAG Resolution No.  21/89 of 
24 January  1989 
Hydrolysates of ruminant origin  Protection of human and 
animal health  MAG Resolution No.  07/02 of 
22 July 2002 
Organochlorine -based  insecticidesa Protection of human 
health and the 
environment  MAG Resolution No.  447/93 of 
24 May 1993 
                                                
41 Articles 6 and 9 of Law No.  1.095/84 of 14  December  1984.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Product  Reason invoked  Legal basis  
Tyres not remanufactured for direct sale  Protection of human 
health and the 
environment  SEAM Resolution No.  627/16 of 
21 October  2016  
Nitrofuranes  Protection of human and 
animal health  MAG Resolution No.  3.078/98 of 
26 June 1998 
Olaquindox  Protection of human and 
animal health  SENACSA Resolution No.  278/08 
of 3 March  2008 
Ordinary primary cells and batteries of zinc 
carbon and alkaline manganese exce eding the 
percentage determined in the Law  Protection of human 
health and the 
environment  Law No.  3.107/06 of 
20 December  2006 
Used articles of apparel and clothing accessories; 
articles of headings 6309 0010 to 6309  0090, 
and 6310 1000 to 6310 9000 (MERC OSUR 
Nomenclature)  Health protection  Decree No.  7.084/00 of 
11 January  2000 
Methyl and ethyl parathion -based productsa Protection of human 
health and the 
environment  MAG Resolution No.  488/03 of 
16 June 2003 
Metamidophos -based products in all 
concentrati ons Protection of human 
health and the 
environment  MAG Resolution No.  493/03 of 
17 June 2003; SENAVE 
Resolution No.  68/06  
Monocrotophos - and phosphamide -based 
substances in all concentrations  Protection of human 
health and the 
environment  MAG Resolution  No. 493/03 of 
17 June 2003; SENAVE 
Resolution No.  69/06  
Sodium tripolyphosphate -based products   Protection of health and 
the environment  Law No.  4.397/11 of 
18 August  2011; Decree 
No. 7.505/11 of 
18 October  2011; Resolution 
No. 1.219/11 of 
3 November  2011 
Proteins of ruminant origin  Protection of human and 
animal health  MAG Resolution No.  15/04 of 
8 March  2004 
Dangerous industrial residues or toxic wasteb Protection of health and 
the environment  Law No.  42/90 of 
18 September  1990 
Hormonal substances fo r the fattening of animals 
for human consumption  Protection of human 
health  Decree No.  3.255/89 of 
19 October  1989 
Active substances derived from the compound 
5-Nitroimidazole  Protection of human and 
animal health  SENACSA Resolution 
No. 3.845/12 of 
27 December  2012  
Beta-agonist substances  Protection of human 
health  SENACSA Resolution 
No. 1.015/12 of 19  April 2012 
Used motor vehicles and trucks of a capacity not 
exceeding 20  tons and more than 10  years old 
(calculated from the year of production)  Protection of consumers  Law No.  2.018/02 of 
8 November  2002; Law 
No. 2.153/03 of 4  July 2003 
Carbadox  Protection of human 
health  SENACSA Resolution No.  953/09 
of 4 June 2009  
a For the purposes of the Rotterdam Convention pursuant to Law No.  2.135/03.  
b Products prohibited under the Basel Convention on the Transboundary Movements of Hazardous 
Wastes and their Disposal.  
Source:  WTO Secretariat.  
3.58.   An authorization or prior licence (the two terms are synonymous), which may be automatic 
or non -automatic, is requi red for the import of a number of products (Table 3.13). Products that 
are subject to sanitary, phytosanitary, animal health, environmental, security or other types of 
control require prior authorization from the competent government authority. A prior lic ence is also 
required for the import of various types of product such as sugar, mate, wheat flour, cement, 
petroleum -based products, beef, poultry meat and offal, hygiene and toiletry products, and live 
animals (birds, cattle, swine). In some cases, import  licences are required for the purposes of 
statistical monitoring, as is the case for made -up articles and footwear. The authorities have 
indicated that import licences for these two types of product are automatic, as is the case for the 
majority of produc ts subject to prior licensing.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Table 3.13 Prior import licences, 2017  
Product  Issuing 
authority  Reason invoked  Legal basis  
Firearms, ammunition, 
explosives and the likea DIMABEL  National security  Law No.  4.036/10 of 11  August  2010; Decree 
No. 3.625/2004  
Narcotic substances and 
dangerous drugsb SENAD  
MSPBS  Health  Law No.  1.340 of 22  November  1988, as 
amended by Law No.  68/92 of 
16 November  1992; Decree -Law No.  9/92 of 
17 February  1992; Law No.  1.881/02 of 
24 June 2002; Decree No.  4.817 of 
15 February  1990; Decree No.  5.213/05 of 
6 May 2005; and Decree No.  12.064/08 of 
18 April 2008 
Hypodermic syringes and 
needlesb MSPBS  Health  Law No.  1.340 of 22  November  1998, as 
amended by Law No.  68/92 of 
16 November  1992; Decree -Law No.  9/92 of 
17 February  1992; and Law No.  1.881/02 of 
24 June 2002 
Food productsa INAN Health  Law No.  836/80 of 15  December  1980; Decree 
No. 1.635/99 of 12  January  1999; and Resolution 
No. 94/14 of 26  March  2014 
Non-marketable food productsa INAN 
MAG  Health  Decree No.  5.254/10 of 15  October  2010; Law 
No. 3.742/09; Decree No.  1.635/99 of 
12 January  1999; and Resolution No.  110/12 of 
24 February  2012  
Plant products and by -products 
(phytosanitary accreditation for 
imported plant products 
(AFID I))a SENAVE  Phytosanitary  
protection  Decree No.  139/93 of 3  September  1993; and  
Resolution No.  202/09 of 10  July 2009 
Sanitary products for 
agricultural usea SENAVE  Phytosanitary 
protection  Law No.  2.459/04 of 4  October  2004; Law 
No. 123/91 of 9  January  1991; Law No.  3.742/09 
of 10 December  2009; Resolution No.  446/06 of 
29 December  2006; Resolution No.  564/10 of 
14 October  2010; and Resolution No.  107/12 of 
1 August  2012  
Seeds for research purposesb SENAVE  Phytosanitary 
protection  Law No.  385/94 of 11  August  1994; Resolution 
No. 393/10 of 1  September  2010; Resolution 
No. 500/10 of 27  September  2010; Resolution 
No. 241/12 of 3  September  2012; and Resolution 
No. 242/12 of 3  September  2012 
Magnetic and optical media and 
raw materials for their 
manufacturea DINAPI  Prevention of 
piracy and 
counterfeiting  Decree No.  603/03 of 20  October  2003; and 
Decree No.  4.212/15 of 12  October  2015 
Medicinesb  DINAVISA  Health  Law No.  836/80 of 15  December  1980, as 
amended by Law No.  115/91 of 4  January  1991; 
and Law No.  1.119/97 of 21  August  1997 
Aerosol -type extinguishers 
containing extinguishing foam 
with a maximum capacity of 
250 mla MIC Environment  Resolution No.  1.023/15 of 4  October  2015 
Washed and centrifuged salta MIC Health  Decree No.  10.114/12 of 23  November  2012; 
Resolution No.  59/14 of 5  February  2014; 
Resolution No.  599/14 of 12  October  2014; and 
Law No.  667 of 18  September  1995 
Sugarb  MIC Quality and health  Resolution No.  251/02 of 9  January  2002; and 
Resolution No.  631/08 of 8  August  2008 
Boneless beefa MIC Administrative 
procedures  Resolution No.  538/06 of 12  September  2006; 
and Resolution No.  607/06 of 3  October  2006 
Meat and offal of fowlsa  MIC Health and 
statistical 
monitoring  Decree No.  1.443/09 of 9  February  2009; Decree 
No. 11.277/13 of 21  June 2013; and Resolution 
No. 74/09 of 17  February  2009  
Cementb MIC Quality and safety  Decree No.  18.352/02 of 26  August  2002; 
Decree No.  6.533/16 of 21  December  2016; and 
Resolution No.  09/2017 of 16  January  2017  
Made -up articles 
(NCM  chapters  61, 62 an d 63)  MIC Statistical 
monitoring  Decree No.  1.421/09 of 5  February  2009; and 
MIC Resolution No.  129/15 of 16  February  2015  
Footwear (25 headings of 
NCM chapter 64)a MIC Statistical 
monitoring  Decree No.  10.350/12 of 21  December  2012; and 
MIC Resolution  No. 150/2015 of 
24 February  2015 
Wheat floura  MIC Registration  Resolution No.  807/07 of 12  October  2007 
Household insecticidesa MIC Health  Resolution No.  171/08 of 14  April 2008 
Ordinary primary cells and 
batteries of zinc carbon and 
alkaline manganes ea MIC Health and 
protection of the 
environment  Decree No.  4.926/10 of 18  August  2010; and 
MIC Resolution No.  970/10 of 22  December  2010 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Product  Issuing 
authority  Reason invoked  Legal basis  
Petroleum -based productsc MIC Protection of the 
environment  Decree No.  10.397/07 of 21  May 2007; Decree 
No. 960/13 o f 18 December  2013; Decree 
No. 2.999/15 of 27  January  2015; Decree 
No. 7.149/17 of 19  May 2017; Resolution 
No. 741/13 of 1  August  2013; Resolution 
No. 1.310/16 of 21  October  2016; and Resolution 
No. 246/17 of 8  March  2017 
Hygiene, toiletry and beauty 
products and household 
sanitary products (risk 
categories 1 and 2)a MIC 
SEAM  Health and 
protection of the 
environment  Law No.  4.397/11 of 18  August  2011; Decree 
No. 7.505/11 of 18  October  2011; Resolution 
No. 12.197/11 of 3  November  2011; and Decree 
No. 3.214 /09 of 21  October  2009 
Articles of wire, rods and bars, 
iron rods, towers and lattice 
mastsc MIC Quality and safety  Resolutions No.  1.043/14 of 21  October  2014; 
No. 14/15 of 9  January  2015; No.  531/15 of 
3 June 2015; No.  980/15 of 1  September  2015; 
and N o. 939/16 of 25  June 2016 
Articles of iron and steela  MIC Quality and safety  Decree No.  897/08 of 20  November  2008, 
Resolution No.  892/11 of 13  October  2011; and 
Resolution No.  173/11 of 25  March  2011  
Yerba mate canchadaa MIC Quality  Resolution No.  201/06 of 21  April 2006 
Cellular mobile telephone 
devices and their parts; only 
motherboardsc MIC Quality  Decree No.  6.832 of 28  February  2017; and 
Resolution No.  410/17 of 10  April 2017 
Plastic bags and biodegradable 
bagsa MIC Protection of the 
environme nt  Resolution No.  353/17 of 27  March  2017 
Incandescent and fluorescent 
lampsa MIC Quality  Decree No.  7.103/17 of 27  April 2017 
Animals, products and 
by-products of animal origind  SENACSA  Health  Law No.  2.426/04 of 28  July 2004; and Decree 
No. 1.635/99 of 12 January  1999 
Bovine or other animals for 
breeding susceptible to 
tuberculosisd SENACSA  Protection of 
animal health  Decree No.  18.613/97 of 6  October  1997; and 
MAG Resolution No.  475/04  
Swined SENACSA  Protection of 
animal health  MAG Decree No.  21.946/98 of 17  July 1998; and 
Decree No.  15.000/96  
Cattle and sheep from 
Argentina, Brazil and Uruguayd SENACSA  Protection of 
animal health  MAG Resolution No. 475/04  
Frozen semen and embryos of 
animal origind SENACSA  Protection of 
animal health  SENACSA Re solution No. 1.026/08; and Decree 
No. 15.000/96 of 4  October  1996 
Ozone -depleting substancesb  SEAM  Protection of the 
environment  Decree No.  3.980/99 of 6  July 1999; Decree 
No. 1.685/08 of 11  August  2008; Resolution 
No. 581/10 of 12  April 2010; and Resol ution 
No. 255/15 of 1  July 2015 
Endangered species of wild 
fauna and florab SEAM  Protection of the 
environment  Law No.  583/76 of 24  August  1976; Law 
No. 96/92 of 24  December  1992; and Decree 
No. 9.701/12 of 19  September  2012 
Used tyres with prior 
remanuf acturinga  SEAM  Health  Resolution No.  627/16 of 21  October  2016 
Recyclable articles 
(paperboard, aluminium, 
plastic, glass, copper, etc.)a SEAM  Certificate of 
innocuity  Resolution No.  374/07 of 13  April 2007 
a Automatic licence.  
b Non-automatic licence.  
c Automatic or non -automatic licence, depending on the tariff heading in accordance with the 
applicable regulations.  
d It was not possible to obtain information.  
Note:  MAG: Ministry of Agriculture and Livestock; MIC: Ministry of Industry and Trade; MSPBS: Ministry of 
Public Health and Social Welfare; INAN: National Food and Nutrition Institute; SENAD: National 
Anti-Drug Secretariat; SENAVE: National Plant and Seed Quality and Health Service; SENACSA: 
National Animal Quality and Health Service; DIMABEL: Arma ments Directorate; SEAM: Environment 
Secretariat.  
Source:  WTO Secretariat, on the basis of notifications from Paraguay in WTO documents G/LIC/N/1/PRY/2 to 
G/LIC/N/1/PRY/7, of various dates; and information provided by the Paraguayan authorities.  
3.59.   During the  period under review, new prior import licensing requirements were introduced 
for the following products: footwear; washed and centrifuged salt; articles of wire, rods and bars, 
iron rods, towers and lattice  masts; articles of iron and steel (NCM 7306.30.0 0 and 7306.61.00); 
cement; cellular telephones, parts therefor and motherboards; plastic and biodegradable bags; 
and incandescent and fluorescent lamps. On the other hand, the prior licensing requirement for WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  importing soya beans (Resolution No.  1.583/13) w as abolished. Some of these measures have 
been notified to the WTO, together with the domestic legislation on import licensing.42 
3.60.   MIC Resolution No.  103/09 requires that applications for prior import licences be 
accompanied by an authenticated copy of the c ommercial invoice for the export of the product to 
Paraguay. In normal cases, the procedure for obtaining a prior import licence at the MIC takes 
around ten days, but for products necessitating a health, sanitary or other type of certificate from 
a governm ent authority, it may last for up to one month. In general, licences are valid for 
30 working days as of the date of issue, which may be extended in certain cases.  
3.1.7   Anti-dumping, countervailing and safeguard measures  
3.61.   Paraguay incorporated the WTO Agreement on Implementation of Article  VI of the 
GATT  1994, the Agreement on Subsidies and Countervailing Measures and the Agreement on 
Safeguards into its domestic legislation by means of Law No.  444/94, which ratified the Final Act of 
the Uruguay Round of multilat eral trade negotiations. The domestic legislation governing the 
application of anti -dumping, countervailing and safeguard measures has been notified to the WTO 
and examined by the competent Committees.43 Since Paraguay's previous review, the legal 
framework  governing application of such measures has not changed, although in 2015 and 2016 
two Handbooks were approved: one on submitting requests to investigate subsidies and 
countervailing measures, and the other on dumping investigations (Table 3.14).  
Table 3.14 Legal framework for trade defence measures, 2017  
Instrument  Scope  
Law No.  444/94 of 11  October  1994 Ratifies the Final Act of the results of the Uruguay Round  
Decree No.  15.286/96 of 28  October  1996 Regulates the procedure for the application of anti -dumping 
and countervailing measures  
Decree No.  1.827/99 of 3  February  1999 Regulates the procedure for the application of safeguard 
measures  
Decree No.  7.105/00 of 13  January  2000 Provides for the implemen tation in Paraguay of the 
Regulations on the application of safeguard measures to 
imports from non -MERCOSUR countries  
Decree No.  10.360/00 of 11  September  2000 Approves the form for submitting requests for the application 
of safeguard measures by MERCOSUR  as a single entity and 
on behalf of a State Party  
Resolution No.  1.418/15 of 1  December  2015 Approves the Handbook for submitting requests for subsidies 
investigations and the application of countervailing duties  
Resolution No.  374/16 of 6  April 2016 Approves the Handbook for submitting requests for dumping 
investigations  
Source:  Directorate of Trade Regulations and Negotiations in the MIC.  
3.62.   Pursuant to Decrees No.  15.286/96 and No.  1.827/99, the MIC and the Ministry of Finance 
are responsible for enfo rcing the relevant WTO Agreements. These two Decrees established the 
Trade Defence and Safeguards Commission, which is responsible for making recommendations to 
the Ministers of Industry and Trade and Finance on whether or not provisional or definitive 
anti-dumping, countervailing or safeguard measures should be applied, and their annulment, 
extension or modification. The Commission is composed of representatives of the MIC, the Ministry 
of Finance, the MRE, and the MAG. It is the MIC's responsibility to de cide whether to initiate 
administrative procedures and to conduct the corresponding investigation, through the Directorate 
of Trade Regulations and Negotiations (DNNC), part of the Under -Secretariat of State for Trade 
(SSEC -MIC). The MRE is in charge of no tifying the WTO of decisions on preliminary or definitive 
determinations.  
3.1.7.1   Anti-dumping and countervailing measures  
3.63.   Paraguay did not initiate any investigations or apply anti -dumping or countervailing 
measures during the period 2011 -2015, as can be seen fro m the notifications submitted to the 
                                                
42 WTO documents G/LIC/N/1/PRY/2 of 14  September  2010; G/LIC/N/1/PRY/3 of 18  February  2014; 
G/LIC/N/ 1/PRY/4 of 18  February  2014; G/LIC/N/1/PRY/5 of 18  February  2014; G/LIC/N/1/PRY/6 of 
6 July 2015; and G/LIC/N/1/PRY/7 of 10  August  2016.  
43 The notifications can be found in WTO documents G/ADP/N/1/PRY/2, G/SCM/N/1/PRY/2 of 
3 March  1997, and G/SG/N/1/PRY/2 of 20 August  1999.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  WTO Committee on Anti -Dumping Practices44 and the WTO Committee on Subsidies and 
Countervailing Measures.45 Paraguay did not maintain this type of measure during the period, after 
notifying the WTO in February  2010 of the  termination of the only anti -dumping duty it applied on 
imports of cement from Brazil.46 In 2016, an investigation was initiated into alleged dumping of 
imports of aluminium profiles from the People's Republic of China (Resolution No.  1.223/16 of 
28 Septem ber 2016) and in February  2017 it was decided not to apply provisional measures (Joint 
Ministerial Resolution No.  1/17 of 8  February  2017). The investigation was ongoing at the time of 
drafting this report (March  2017).  
3.64.   Administrative procedures for the ap plication of anti -dumping or countervailing measures 
are regulated by Decree No.  15.286/96.47 An investigation is initiated upon a written application to 
the MIC by or on behalf of the domestic industry or ex officio . The domestic producers specifically 
supporting the request must represent at least 25% of total domestic output of the like product. 
Once it has received the application, the MIC has a maximum of 30 working days in which to 
consider the request and, if it decides to accept it, must issue a reso lution ordering the initiation of 
an investigation, which is published in the Official Journal. The MIC may recommend the imposition 
of provisional measures within 90 days as of the date of initiation of the investigation, which may 
be extended by a furthe r 30 days. The Ministers of Industry and Trade and Finance decide whether 
to impose provisional measures by means of a joint ministerial resolution published in the Official 
Journal, which is only possible if a preliminary determination has already been ma de that the 
increased imports or the dumping or subsidization have caused injury to the domestic industry and 
that at least 60 days have elapsed since the resolution initiating the investigation was published.  
3.65.   The MIC must convene the Trade Defence and Saf eguards Commission to submit the 
conclusions and recommendations of the investigation within 90 days (which may be extended by 
30 days), following the issuing of the resolution containing the preliminary determination. The MIC 
must submit the definitive re commendation within one calendar month of the date on which the 
Commission was convened. On the basis of this recommendation, within 30 days, the Ministers of 
Industry and Trade and Finance must decide whether to impose definitive measures by means of a 
joint ministerial resolution to be published in the Official Journal. Investigations must be concluded 
within 12 months (which may be extended up to 18 months) from the date of the resolution 
ordering the initiation of the investigation.  
3.66.   Anti-dumping or coun tervailing duties must be applied in amounts equal to or less than the 
margin of dumping or subsidization and must be terminated within a maximum period of 
five years, unless it is determined that termination would lead to continuation or recurrence of the  
injury and of dumping or subsidization. After one year has elapsed since the duties were imposed, 
the MIC may initiate a review procedure to examine the need for continued imposition of the 
definitive duty, either at the request of an interested party or ex officio . 
3.67.   In December  2015, the Minister of Industry and Trade approved the Handbook for 
submitting requests for subsidies investigations and the application of countervailing duties, which 
includes instructions concerning the type of information and doc uments to be submitted together 
with the request in relation to the standing of the applicant, the product to be investigated, the 
domestic industry, and elements for determining the margin of subsidization, the injury and the 
causal link. In April  2016, a  Handbook for submitting requests for dumping investigations was also 
approved.  
                                                
44 WTO documents G/ADP/N/280/Add.1 of 22  April 2016; G/ADP/N/265/Add.1 of 24  April 2015; 
G/ADP/N/252/Add.1 of 15  April 2014; G/ADP/N/244/Add.1 of 17  October  2013; G/ADP/N/237/Add.1 of 
10 April 2013; G/ADP/N/230/Add.1 of 12  October  2012; G /ADP/N/223/Add.1 of 20  April 2012; and 
G/ADP/N/216/Add.1 of 19  October  2011.  
45 WTO documents G/SCM/N/298/Add.1 of 22  April 2016; G/SCM/N/281/Add.1 of 24  April 2015; 
G/SCM/N/267/Add.1 of 15  April 2014; G/SCM/N/259/Add.1 of 18  October  2013; G/SCM/N/250/Add.1  of 
10 April 2013; G/SCM/N/242/Add.1 of 12  October  2012; and G/SCM/N/235/Add.1/Rev.1 of 12  October  2012.  
46 WTO document G/ADP/N/202/PRY of 4  October  2010.  
47 An explanation of these procedures and a flow chart showing investigations can be found in: MIC 
(2013), Procedimientos de Defensa Comercial en Paraguay. Documento Explicativo 2013 . Viewed at: 
http://www.mic.gov.py/v1/sites/172.30.9.105/files/PROCE DIMIENTOS%20DEFENSA%20COMERCIAL_0.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.1.7.2    Safeguard measures  
3.68.   Paraguay did not initiate any investigations or adopt any safeguard measures during the 
period of this review.  
3.69.   The MIC and the Ministry of Finance are respo nsible for applying safeguard measures in 
conformity with the administrative procedures laid down in Decree No.  1.827/99.48 A request for 
the application of a safeguard measure must be submitted to the MIC in writing, accompanied by 
sufficiently probative e vidence of increased imports, serious injury or threat of serious injury and a 
causal link between the two, as well as an adjustment plan to enhance the domestic industry's 
ability to compete with imports. The MIC must examine the admissibility of the requ est within a 
maximum period of 20 days from its receipt. If it is accepted, within a period not exceeding 
40 days, the SSEC -MIC must draw up and forward to the Minister of Industry and Trade a report 
on whether or not to initiate an investigation. Within 2 0 days of receiving the report, the Minister 
must decide whether to initiate the investigation, issuing a ministerial resolution published in the 
Official Journal.  
3.70.   The SSEC -MIC is responsible for conducting the investigation, which must be concluded 
within  nine months (which may be extended by a further two months) or, if provisional measures 
are applied, 200  days from the date of application of such measures. In order to determine 
whether increased imports are threatening to cause serious injury to a domes tic industry, in 
addition to the relevant factors defined in the WTO Agreement on Safeguards, the price of imports 
and the trend in domestic prices of like products may be taken into account.49 
3.71.   The Ministers of Industry and Trade and Finance may decide to a pply provisional safeguard 
measures by means of a joint ministerial resolution published in the Official Journal. The decision 
must be based on a ruling from the Trade Defence and Safeguards Commission and a report from 
the SSEC -MIC containing a preliminar y determination of serious injury or threat of serious injury to 
the domestic industry caused by the imports, as well as evidence of critical circumstances such as 
increased imports within a relatively short period or any delay in applying the measures tha t would 
result in serious injury or threat thereof being difficult to repair. Provisional safeguard measures 
must take the form of an increase in import duty, additional to the CET, and may be ad valorem  
duties, specific duties, or a combination of the two . 
3.72.   The imposition of definitive safeguard measures also requires a joint ministerial resolution 
published in the Official Journal and may only be ordered to the extent necessary to prevent or 
repair the serious injury and facilitate adjustment of the domest ic industry. Definitive safeguard 
measures may take the same form as provisional measures, as well as the form of quantitative 
restrictions.  
3.73.   Paraguay did not reserve the right to apply the special safeguard measures provided in the 
WTO Agreement on Agricul ture. 
3.74.   At the MERCOSUR level, the only common trade defence rules are to be found in the 
Regulations on the application of safeguard measures to imports from non -Southern Common 
Market countries50, in force in Paraguay pursuant to Decree No.  7.105/00 of 13  January  2000. The 
Regulations provide procedures for applying safeguard measures under Article  XIX of the 
GATT  1994 by MERCOSUR as a single entity or on behalf of a State Party. The procedures are 
based on the WTO Agreement on Safeguards. When the measures are applied by MERCOSUR on 
behalf of a State Party, the products concerned are subject to the MERCOSUR regime of origin for 
trade among States Parties.51 
                                                
48 For a detailed explanation of these procedures, see: MIC (2013), Procedimientos de Defensa 
Comercial en Paraguay. Documento Explicativo 2013 . Viewed at: 
http://www.mic.gov.py/v1/sites/172.30.9.105/files/PROCEDIMIENTOS%20DEFENSA%20COMERCIAL_0.pdf . 
49 Articles 6 and 7 of Decree No.  1.827/99.  
50 Decision No.  17/96 of the MERCOSUR Council.  
51 Article  82 of Decision No. 17/96.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.2  Measures directly affecting exports  
3.2.1   Export procedures and requirements  
3.75.   For exports, customs procedures are governed by the Customs Code (Law No.  2.422/04 of 
5 July 2004) and its implementing Regulations (Decree No.  4.672/05 of 6  January  2005). Any 
natural or legal persons seeking to engage in export transactions must be registered in the 
National Register o f Exporter Documentation through the single window for exports (VUE), 
administered by the MIC. This Register is governed by Decree No.  3.358/04 of 
14 September  2004, MIC Resolution No.  821/04 of 11  November  2004 and MIC Resolution 
No. 969/10 of 22  December  2010.  
3.76.   There is also a National Register of Exporters, created by General Resolution No.  13/14 of 
28 January  2014 of the Under -Secretariat of State for Taxation (SET) in the Ministry of Finance. 
The Register's purpose is to administer tax credits for expor ters, and all taxpayers engaged in 
export transactions (including the supply of international export freight services) must be listed in 
the Register. Registration is through the SET's website and is valid until 31  December each year, 
irrespective of the d ate of registration.  
3.77.   All exports are through the VUE, which was authorized by Resolution No.  7.290/06 and is a 
computer system to facilitate export procedures, allowing interconnection of export -related 
operators and entities: exporters, customs agents, ce rtifying entities, the MIC and other 
government institutions, banks and private institutions (trade unions, chambers, carriers, etc.). Its 
services include the completion of electronic formalities, electronic collection of payments, and 
providing users wit h information. Its purpose is to optimize procedures, thus lessening costs and 
time, facilitate flows of information and gather statistical data on export transactions. In addition 
to keeping the National Register of Exporter Documentation, the VUE allows registration of 
industrial firms and completion of other authorization or certification formalities for export. The 
following institutions have been incorporated into the VUE: MIC, MAG, SENACSA, SENAVE, MSPBS, 
DNA, the Ministry of Finance, SENAD, DNVS, the  Merchant Marine, INFONA, and bodies which 
issue certificates of origin, inter alia . 
3.78.   Export declarations are submitted using the SOFIA electronic system and must be 
accompanied by the commercial invoice and the land or waterway bill of lading or air waybil l. 
Depending on the type of goods to be exported, various types of certificate or registration are also 
required, for example, a sanitary, phytosanitary or animal health certificate. An eligibility 
certificate (C.Q.E.) issued by the MIC is required for exp orts of sugar to the United States, in 
accordance with the quota allocated to Paraguay. A certificate of origin also has to be issued for 
goods eligible for tariff preferences under trade agreements signed by Paraguay. Certificates of 
origin are issued by government and private bodies authorized by the MIC through an online 
procedure in the VUE.  
3.79.   Listing in a register is required for the export of some products, imposed by the MIC or by 
other institutions (INFONA, DNVS, etc.) and is linked to the requirement  to obtain a prior licence 
for exports. In the case of the MIC, registration is required for the following products: Petit Grain 
essential oil; aluminium, copper and bronze; and articles of iron and steel (Table 3.15).  
3.2.2   Export taxes, charges and levies  
3.80.   Paraguay does not apply any export taxes. A draft law went before the Senate in 2016 
proposing the application of a tax on the export of grain but it did not pass. A tax on the export of 
agricultural products in their natural state was imposed in the past but was repealed on 
1 January  2005 by Decree No.  2.939/04 of 26  July 2004.  
3.81.   A tax applies to the endorsement of export documents and other commercial documents 
requiring action by the MIC's Directorate -General of Foreign Trade. MRE Resolution No.  869/14 of 
11 September  2014 set this tax at 0.5 daily wages, which at the time of drafting this report 
(May 2017) amounted to around ₲37,779.  
3.82.   In addition, DINAC applies taxes on export cargo. When cargo for export is loaded directly 
on to the aircraft, a tax corresponding to US$0.007/kg is imposed on the taxable value indicated WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  on the clearance document or the completed customs document ation. If the goods are stored, the 
figure for general export cargo is US$0.005/kg or US$0.007/kg if special storage is required. The 
tax for all export cargo whose value has not been determined by the customs authority is 
US$0.005 per gross kg of cargo to  be loaded and US$0.007 per gross kg if it is special cargo.52 
3.2.3   Export prohibitions, restrictions and licensing  
3.83.   Paraguay bans or restricts the export of certain products, generally in order to protect the 
environment or public health or to comply with its co mmitments under international agreements 
such as the Basel Convention and the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora (CITES). For example, the export of wild animals is banned without express 
authorization from the Environment Secretariat, as are traffic, marketing and preparation of 
dangerous drugs and narcotics (Table 3.15).  
3.84.   In some cases, the reason for the restrictions concerns the promotion of domestic industry 
or efforts to increase value added or ensure domest ic supplies of raw materials. For example, it is 
prohibited to export wood of any species in the rough or semi -processed, or sawn wood of the 
species Cedrela spp.  (cedar), Tabebuia spp.  (lapacho), Myrocarpus spp.  (incense) and Cordia 
trichotoma  (petereby),  including planed wood, unless it has been treated in kilns and shaped on all 
four surfaces. Furthermore, Law No.  515/94 bans the export of or international traffic in round 
wood, wood blocks and beams of any species, quantity, weight or volume. As far as Petit Grain 
essential oil is concerned, the legislation requires that part of domestic production be processed 
and only allows export of up to 60% of unprocessed production. This restriction is applied through 
export licences issued by the MIC.  
3.85.   Since 2003,  a prior licence from the MIC has been required to export aluminium, copper and 
bronze waste and, since 2008, articles of iron and steel, in addition to the requirement to be listed 
in the corresponding exporters' registers (section 3.2.1 above). In both c ases, the aim is to 
guarantee the supply of raw materials for domestic industry. Export licences are processed online 
through the VUE.  
3.86.   A phytosanitary export licence issued by SENAVE is required to export plant products and 
by-products if their nature or p reparation entails a potential risk of introducing regulated diseases 
pursuant to ISPM No.  12 and Law No.  123/91. Agricultural inputs (fertilizers, pesticides, etc.) 
require an export certificate issued by SENAVE through the VUE. The export of pharmaceutic als 
requires a sanitary certificate issued by the MSPBS.  
Table 3.15 Export prohibitions and restrictions, 2017  
Product  Restriction/  
Authority 
responsible  Reason invoked  Legal basis  
Wild animals  Export prohib ited 
without express 
authorization  
(SEAM)  Protection of 
biodiversity  Law No.  96/92 of 24  December  1992 
Species in danger of 
extinction  Prior authorization  
(SEAM)  Protection of the 
environment  Law No.  583/76 of 24  August  1976; 
Law No.  96/92 of 24  Decembe r 1992; 
Decree No.  9.701/12 of 
19 September  2012 
Ozone -depleting substances 
(ODS)  Export licence  
(SEAM)  Protection of the 
environment  Decree No.  12.685/08 of 
11 August  2008; Resolution No.  255/15 
of 1 July 2015 
Narcotics and dangerous 
drugs  Prohibition  
(SENAD)  Public health  Law No.  1.340 of 22  November  1988, 
updated by Decree No.  18.425/02  
Wood in the rough or 
semi-processed (round wood, 
blocks or beams)  Prohibition  
(INFONA)  Environment and 
higher domestic 
value added  Law No.  515/94 of 9  December  1994, 
as amended by Law No.  2.848/05  
                                                
52 Decree No.  8.701/12 of 4  April 2012, as amended by Decree No.  4.333/15 of 2  November  2015.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Product  Restriction/  
Authority 
responsible  Reason invoked  Legal basis  
Sawn wood, including planed 
wood, of the species cedar, 
lapacho, incense and 
petereby, unless treated in 
kilns and shaped on all four 
surfaces  Prohibition  
(INFONA)  Environment and 
higher domestic 
value added  Decree No.  8.463/91 of 
28 January  1991, as am ended by 
Decree No.  8.574/06 
of 5 December  2006; Resolution 
No. 498/08  
Wood articles of the species 
Bulnesia Sarmientoi 
(Palo Santo)  Prior authorization and 
physical inspection  
(INFONA)  Protection of the 
environment  Resol ution No.  1616/12 of 
27 December  2012; Resolutions 
Nos. 752/2016 and 753/2016, both 
of 25 August  2016; Resolution 
No. 779/2016 of 6  September  2016 
Petit Grain essential oil  Export licence  
(MIC)  Higher domestic 
value added  Law No.  268/71 of 30  July 1971; 
Decree No.  26.067/72  
Aluminium, copper and 
bronze  Export licence  
(MIC)  Supply of raw 
materials for 
domestic industry  Decree No.  21.003/2003 of 
2 May 2003; Resolution No.  219/2003 
of 26 May 2003; Resolution 
No. 729/2009  
Articles of iron and steel  Export licence  
(MIC)  Supply of raw 
materials for 
domestic industry  Decree No.  897/08 of 
20 November  2008; Resolution 
No. 173/11; Resolution No.  1.023/13 
of 17 October  2013 
Biofuels (ethanol)  Export licence  
(MIC)  Protection of the 
environment  Resolution No.  681/09 of 
20 October  2009 
Hazardous waste  Prohibition or prior 
authorization  
(SEAM, MAG or 
DIMABEL)  Compliance with the 
Basel Convention  Law No.  567/95  of 1 June 1995 
Semi-processed products of 
plant origin not presenting 
any risk of disease  Phytosanitary  
certificate  
(SENAVE)  Phytosanitary 
protection  Law No.  123/91 of 9  January  1991; 
Law No. 2.459/04 of 4  October  2004 
Pharmaceuticals  Sanitary registration  
MSPBS  Public health  Law No.  1.119/97 of 21  August  1997; 
Decree No.  10.262/12  of 
17 December  2012 
Note: MAG: Ministry of Agriculture and Livestock; MIC: Ministry of Industry and Trade; MSPBS: Ministry of 
Public Health and Social Welfare; INFONA: National Forestry Institute; SENAD: National Anti -Drug 
Secretariat; SENAVE: National Plant and Seed Quality an d Health Service; SENACSA: National 
Animal Quality and Health Service; DIMABEL: Armaments Directorate; SEAM: Environment 
Secretariat.  
Source:  WTO Secretariat, on the basis of information provided by the Paraguayan authorities.  
3.2.4   Export support  
3.2.4.1   Exemption from  internal taxes  
3.87.   Pursuant to Law No.  125/91 of 9  January  1992 and amendments thereto, exported goods 
are not subject to payment of VAT or the ISC.  
3.2.4.2   Drawback (refund of customs duty) and temporary admission for inward 
processing procedure  
3.88.   Article  177 (Drawbac k) of the Customs Code gives exporters the opportunity to obtain total 
or partial refund of customs taxes paid upon import for the goods exported or for products 
contained therein or consumed in the course of production. This procedure has not been applied , 
however, as it has not been regulated.  
3.89.   According to the temporary admission for inward processing procedure (Article  178 of the 
Customs Code), foreign goods may enter with total or partial suspension of customs duty in order 
to be processed (transformati on, preparation, repair, restoration and finishing, conditioning, 
packing or packaging), provided that the final product is exported. This procedure has been used 
regularly; in 2016, temporary imports for transformation amounted to US$85.9  million, whereas  
temporary imports without transformation amounted to US$18.7  million.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.90.   In 2015, the MERCOSUR Common Market Council approved extension of the application of 
the drawback and temporary admission procedures for intra -zone trade until 31  December  2023.53 
As Par aguay and Uruguay do not use these procedures, they were allowed to apply a zero rate on 
imports of agricultural inputs, which have to be notified to the MERCOSUR Trade Commission. At 
the time of drafting this report, Paraguay had not incorporated this Dec ision into its domestic 
legislation and it was therefore not in force.  
3.2.4.3   Tax credits for exporters  
3.91.   VAT and the ISC paid on goods and service intended directly or indirectly for the production 
of goods for export may be refunded by means of tax credits for ex porters.  
3.92.   Law No.  5.061/13 of 4  October  2013 (which amends Law No.  2.421/04) provides that for 
export transactions in "agricultural products in their natural state" and export transactions in 
"agricultural products in their natural state and their by -produc ts which have been subject to 
basic, primary or incipient industrialization processes" the tax credit refund is 50% of the tax paid 
on the goods and services directly or indirectly used for these transactions.54 The tax credit is 
100% for the purchase of go ods and services related to export transactions in goods fully 
industrialized in Paraguay; goods which have entered under the temporary admission for inward 
processing procedure and then been re -exported; and capital goods produced by domestic 
manufacturer s, used directly in the industrial or agricultural production cycle and purchased by 
subjects covered by Law No.  60/1990.55 
3.2.4.4   Free zones  
3.93.   Paraguay continues to apply a free zone (FZ) regime. Its main legal basis is Law 
No. 523/95, and its implementing Regulati ons (Decree No.  15.55 4), together with other 
provisions, are shown non -exhaustively in Table 3.16.  
Table 3.16 Principal legal instruments on the free zone regime  
Legal instrument  Subject  
Law No.  523/95 of 16 January  1995 Authorizes and establishes the free zone regime  
Law No.  2.421/04 of 5  July 2004 Administrative reorganization and fiscal adjustment partly 
amending Law No.  523/95  
Decree No.  15.554/96 of 
29 November  1996 Implements Law No. 523/95 of 16  January 1995 authorizing and 
establishing the free zone regime  
Decree No.  15.006/01 of 15  October  2001 Approves the Manual on the organization and functions of the 
National Free Zones Council and its dependent bodies  
Decree No.  19.461/02 of 
22 Novembe r 2002 Approves the regulations on the functioning and operation of free 
zones  
Decree No.  20.395/13 of 18  February  2013  Establishes administrative measures designed to broaden the 
scope of the regulations on imports from free zones  
Decree No.  21.309/0 3 of 10  June 2003 Partly amends Decrees Nos . 15.554/96, 19.461/2002 and 
20.395/2003 (facilitating transit in free zones)  
Decree No.  7.068/06 of 6  January  2006 Determines measures for the import of goods from free zones 
authorized in Paraguay and originati ng in MERCOSUR  
Decision MERCOSUR/CMC/DEC No.  8/94 Free zones, export processing zones and special customs areas  
Decree No.  4.718/15 of 29  December  2015 Amends Article  1 of Decree No.  2.701/09 of 14  August  2009, 
declaring goods under tariff headings of c hapters 61 to 63 of the 
NCM affected by unfair trade practices as goods contrary to the 
country's interest, in the terms of Law No. 523/95 authorizing and 
establishing the free zone regime  
DNA Resolution No.  295/16 of 7  June 2016 Establishes provisions o n production of clothing in authorized free 
zones (chapters 61 to 63 of the NCM) for export and the 
application of the relevant control mechanisms  
Source:  WTO Secretariat. Online information viewed at: http://www.hacienda.gov.py/web -
hacienda/index.php?c=545 . 
                                                
53 Decision CM No.  24/15 of 16  June 2015.  
54 Article  14 of Decree No.  1.029/13 of 27  December  2013 defines what is meant by "agricultural 
products in thei r natural state" and "agricultural products in their natural state and their by -products which 
have been subject to basic, primary or incipient industrialization processes".  
55 Article  13 of Decree No.  1.029/13 of 27  December  2013.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.94.   Pursuant to Law No.  523/95, free zones are areas set up in Paraguayan territory, clearly 
delimited and separate from customs territory, whose installation and exploitation may onl y be of 
a private nature. The National Free Zones Council (CNZF) is responsible for regulating and 
controlling free zones; it is composed of representatives of the Ministry of Finance, the MIC and 
the Ministry of Public Works and Communications (MOPC), tog ether with a representative of users 
and another of concessionaires of free zones.  
3.95.   Three types of activity can be carried on in free zones: (a) commercial activities, consisting 
of the introduction of goods for intermediation without any transformation (in cluding storage, 
selection, classification, handling, mixing of goods and raw materials); (b) industrial activities, 
consisting of manufacturing or assembling goods for export by transforming raw materials and/or 
semi-processed products of domestic origin or imported; and (c) repair and maintenance services 
for equipment and machinery, and other services that may be authorized by the Executive.  
3.96.   There are two types of economic actor in free zones: the concessionaire and the user. The 
concessionaire is the pr ivate legal person who, under a contract with the Executive, acquires the 
right to equip, manage and operate a free zone. Investment projects to equip a free zone have to 
be submitted to the CNZF, which examines the project and forwards its recommendation to the 
Executive for a decision. Concessions are given for a term of 30 years, which may be extended for 
a further 30 years. The user is the Paraguayan or foreign natural or legal person of private status 
who acquires the right to conduct commercial, indus trial or services activities in a free zone under 
a contract signed with its concessionaire; such a contract must be entered in the register kept by 
the CNZF.  
3.97.   Concessionaires and users of free zones are subject to different tax regimes. 
Concessionaires may  be given the investment incentives granted by Law No.  60/90 and are 
exempt from VAT on services provided to users in free zones (including port facilities); 
nevertheless, they are not eligible for the tax exemptions given to users under Law No.  523/95 
(Table 3.17).  
Table 3.17 Tax concessions under the free zone regime  
Concessionaires  Users  
Incentives under Law No.  60/90 for 
investment of capital of national or foreign 
origin  Exemption from all national, de partmental or municipal taxes on 
earnings from activities in the FZ  
Exemption from all taxes on the import of 
capital goods intended for infrastructure in 
the FZ  Exemption from all taxes on the import of capital goods 
(machinery and equipment, including  goods leased with a 
purchase option) entering FZ  
Exemption from VAT on services provided 
to users of FZ  Exemption from taxes on the payment of royalties, commission, 
fees, interest or any other remuneration for services, technical 
assistance, transfer of technology, loans or financing, rental of 
equipment or any other service provided from third countries to 
users of FZ  
Exemption from all taxes on port facilities 
provided to users of FZ  Exemption from taxes on the incorporation of companies users of 
FZ and on remittances of profits/dividends to third countries  
Source:  WTO Secretariat, on the basis of Law No.  60/90, Law No.  523/95 and Decree No.  15.554/96.  
3.98.   Users of free zones solely engaged in export to third countries pay a flat rate tax (free zone 
tax) of 0.5% on gross income earned from their exports. Companies engaged in business, 
industrial or services activities in free zones may sell finished goods and services in Paraguayan 
customs territory up to a maximum of 10% of the company's gross sales revenue, paying only the 
free zone tax. If a company in a free zone engages in sales in Paraguayan customs territory 
exceeding 10% of its gross sales revenue, it is liable for income tax on the share of its sales in the 
customs territory in its total gross  income, in addition to paying the free zone tax on exports to 
third countries.56 
3.99.   Imports into Paraguayan customs territory from companies established in free zones have 
to pay tariffs and any other import tax applicable. As regards goods of MERCOSUR origin , Decree 
No. 7.068/06 provides that goods which are imported into customs territory from free zones 
authorized in Paraguay and which can prove that they are of MERCOSUR origin at the time of entry 
                                                
56 Article 17 of Law No.  523/95, as amended by Article  36, paragraph 10, of Law No.  2421/04.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  may be eligible for the tariff concessions given in the cus toms union. Decision 
MERCOSUR/CMC/DEC No.  8/94 provides that States Party apply the CET or, for products subject 
to an exception, the domestic tariff applicable to goods from commercial or industrial free zones, 
export processing zones and special customs areas at the time they enter the country concerned.  
3.100.   Sales by one free zone user to another are exempt from all taxes. Sales from customs 
territory to free zones receive the same tax treatment as exports.  
3.101.   In order to allow textile firms to set up in free zo nes and to help create jobs, Decree 
No. 4.718/15 of 29  December  2015 (published on 14  January  2016) was signed, amending 
Article  1 of Decree No.  2.701/2009. This amendment authorized production of goods under tariff 
headings of chapters 61 to 63 of the NCM  in free zones, provided that they are solely intended for 
international export; it is not allowed, however, to introduce them into free zones. Decree 
No. 4.718/15 provides that this measure is to be evaluated one year after its entry into force.  
3.102.   The DNA i ssued Resolution No.  295/16 of 7  June 2016 establishing regulatory provisions 
for the production of clothing in free zones (NCM chapters 61 to 63) in order to apply stricter 
controls and ensure that the clothing manufactured is intended for export and is n ot introduced 
into national customs territory. Companies using free zones are obliged to be registered as 
"clothing manufacturers", provide the Customs with data prior to import, link their import 
declarations to their production and export plans, and make  sure that the data on the commercial 
invoice for the clothing exported corresponds to the data in the plan. Only one textile firm has 
started up in a free zone so far.  
3.103.   As of May  2017, two free zones had been authorized in Paraguay: the Zona Franca 
Interna cional Trans Trade S.A. & Asociados (which groups 104 commercial firms and four industrial 
firms) and the Zona Franca Global del Paraguay S.A.C.S. (37 commercial firms and nine industrial 
firms). Decree No.  17.003/02 of 24  April 2002 gave both zones a conc ession for 30 years and they 
started to operate in 2003.57 Industrial firms established in free zones manufacture articles such as 
automotive parts, aluminium conductors, electronic test boards, TV cables, furniture, textiles, 
cosmetics, LED lights and bicy cle tyres. Around 2,500 people work in the two free zones, either 
directly or in outsourced services, and their main market is Brazil.  
3.104.   Gross turnover from exports by free zone firms almost doubled during the period under 
review, reaching a high of US$56.7  million in 2014. This was reflected in an increase in revenue 
from the free zone tax. In 2016, exports from free zones amounted to US$49.2  million, close to 
0.5% of Paraguay's total exports of goods (Table 3.18).  
Table 3.18 Free zone indicators, 2011 -2016  
(US$)  
Year Gross turnover of exports from free 
zones  Revenue from the free zone tax  
2011  26,134,648  130,673  
2012  36,913,054  184,565  
2013  26,894,212  134,471  
2014  56,767,286  283,836  
2015  45,651,346  228,257  
2016  49,271,254  246,356  
Source:  National Free Zones Council.  
3.105.   According to the authorities, free zones need to be sustained as poles of industrial, 
commercial and services development in order to create jobs, generate foreign exchange and 
transfer of tech nology. The regulations governing this sector, therefore, need to be adapted, 
particularly those on services, in order to facilitate the establishment of service firms such as call 
centres.  
                                                
57 Decrees Nos . 21.981/2003 and 6.645/2005 extended free zones to industrial activities.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.2.4.5   Maquila  
3.106.   The maquila  regime has been operating in Paraguay since 20 01. It operates on the basis of 
a contract under which a foreign company supplies goods and services to a company located in 
Paraguay (maquiladora) so that it can carry out processes that add value (transformation, 
preparation, repair or assembly) and re -export the finished product. Maquiladoras may operate in 
various forms such as "maquila pura" solely engaged in maquila  operations; "idle capacity 
maquila" and "submaquila".  
3.107.   The legal framework governing the maquila  regime mainly consists of Law No.  1.064/9 7 of 
13 May 1997 (and amendments thereto) and its implementing Regulations, Decree No.  9.585/00 
of 17 July 2000. These texts have not been notified to the WTO.  
3.108.   During the review period, Law No.  5.408 of 30  March  2015 was adopted, increasing the 
time during  which raw materials and inputs temporarily imported may remain in Paraguay from 
six to 12 months, together with Decree No.  6.118 of 11  February  2011, which regulates the 
transfer of goods for virtual export -import between maquila companies.  
3.109.   The National C ouncil of Maquila Export Industries (CNIME), created by Law No.  1.064/97, 
is responsible for promoting and regulating maquila  activities; it is chaired by the MIC and includes 
representatives of the Ministry of Finance, the Central Bank, the Technical Secr etariat for Economic 
and Social Development Planning, and the MRE.  
3.110.   Maquila  companies are organized as Production Cost Centres, a legal concept to which 
special tax treatment applies. The main benefits of this regime include the application of a single 
maqu ila tax of 1% on the national value added or the amount invoiced, whichever is higher; 
suspension of tariffs and other import taxes on raw materials, inputs and machinery; refund of 
VAT through tax credits; and exemption from all other national, department al or municipal taxes. 
Companies solely engaged in maquila  operations ("maquila pura") are eligible for additional 
exemptions (Table 3.19).  
3.111.   The benefits of the maquila  regime are available to Paraguayan or foreign natural or legal 
persons, provided that th ey are domiciled in Paraguay and are authorized to engage in trade. 
Interested companies must be registered and submit a "maquila  programme" to the CNIME, which 
evaluates it and forwards it to the MIC and the Ministry of Finance for final approval, given b y 
means of a joint ministerial resolution.  
Table 3.19 Tax benefits under the maquila  regime  
Type of tax  Benefit  
For all companies  
Single maquila tax  A single tax of 1% of national value added or the value of the 
invoice issued by the foreign company, whichever is higher. This 
benefit also applies to "submaquila"  activities.  
Import tariffs  Temporary import of raw materials, inputs and machinery, 
suspending tariffs and other taxes, subject to the posting of  security 
covering the amount of any taxes that may apply.  
Other import charges and taxes  Exemption from: customs valuation service tax; consular fees; INDI 
tax; port and airport taxes; IT tax; any other tax or charge on the 
entry/exit of goods covered by the maquila regime; taxes or 
charges on guarantees given by firms and relating to maquila 
activities; taxes or charges on loans to finance maquila  operations.  
Value added tax  Exports by maquiladoras  are exempt from VAT.  
Refund of the VAT paid on dome stic purchases of goods and 
services in the form of tax credits.  
Additional benefits for companies solely engaged in maquila  operations  
Exemption from the tax on permits for trade, industry, professions and crafts.  
Exemption from the building tax on in dustrial and/or services facilities approved under the maquila 
programme.  
Exemption from taxes directly applied to the maquila  process.  
Exemption from VAT on rental or leasing of machinery and equipment under the maquila  programme.  
Exemption from any other  national or departmental tax, charge or contribution in effect or to be adopted in the 
future.  
Source:  WTO Secretariat, on the basis of Law No.  1.064/97 and Decree No.  9.585/00.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.112.   Maquiladoras  may be set up in one of the following forms: public limited co mpanies, 
partnerships, limited liability companies, subsidiaries of foreign companies, or as an individual 
enterprise with limited liability. There are no restrictions as to the percentage of foreign capital in 
maquila  firms. Maquila companies may be set u p anywhere in Paraguay, the only limitations being 
imposed by national development plans or environmental criteria. There are no restrictions either 
on the type of product or service to be offered in the programmes of maquila  firms.  
3.113.   Maquila  firms must expo rt the goods or services resulting from their transformation, 
preparation or assembly activities. They may, however, sell up to 10% of the volume exported the 
preceding year on the domestic market, provided that they have obtained authorization from the 
CNIME beforehand and paid the applicable domestic tariffs and taxes in order to clear the inputs 
and goods for production imported on a temporary basis. They must also pay income tax on the 
percentage sold on the domestic market on the basis of a profitabili ty coefficient determined by 
the tax authorities.  
3.114.   As of May  2017, 131 firms (125 industrial firms and six service firms) covered by the 
maquila  regime were in operation.58 Overall, these firms employed 11,593 people and represented 
investment of over US$300  million. The average value of exports by maquila firms was 
US$197  million annually from 2011 to 2015. In 2016, exports under the maquila  regime amounted 
to US$313.9  million; the authorities attribute this growth to implementation of government 
policies to  attract foreign investment. The principal export items under the maquila  regime are: 
automotive parts (39%); made -up articles and textiles (23.9%); plastics and articles of plastic 
(10.4%); leather and articles of leather (10.1%); followed by pharmaceutic als (3.8%); wood and 
articles of wood (3.2%); footwear and parts therefor (2.8%); intangible services (1.6%); 
pigments, paints and dyes (1.1%); food products (0.9%); and others (1.2%).59 
3.2.4.6   Export subsidies  
3.115.   In its most recent notification (2010) pursuant to Ar ticle 25.2 of the Agreement on 
Subsidies and Countervailing Measures (SCM) and paragraph 1 of Article  XVI of the GATT 1994, 
Paraguay indicated that it did not maintain any subsidy within the meaning of Article  1.1 of the 
SCM Agreement.60 It did not request an extension of the time-limit for eliminating export 
subsidies, granted to developing countries which so request pursuant to the Doha Ministerial 
Declaration.  
3.116.   As regards subsidies for the export of agricultural products, Paraguay has notified the WTO 
that it did not apply such measures from 2010 to 2015.61 
3.2.4.7   Export promotion and financing  
3.2.4.7.1    Export promotion  
3.117.   In Paraguay, export promotion is the responsibility of the Investment and Export Network 
(REDIEX), part of the MIC. REDIEX was created by Executive Decree No. 4.328/05 to implement 
the National Export Plan 2004 -2008. The Plan remains a reference text for determining the MIC's 
export policy goals, namely, diversification of products and markets, expanding the supply of 
exportable goods, intersectoral work and  boosting the international competitiveness of Paraguay's 
economy.  
3.118.   REDIEX's role is to support Paraguay's exports and attract investment through interactive 
efforts by all government actors, as well as those in the business sector, universities and civil 
society organizations. It is based on four main approaches: (i) sectoral round tables, bringing 
together relevant actors from production sectors with the greatest export potential; (ii) attracting 
Paraguayan and foreign investment in order to catalyse produ ction for export; (iii) improving the 
business climate; and (iv) international promotion, consisting of exploring business opportunities 
abroad, both for exports and for attracting investment.  
                                                
58 Information provided by the CNIME.  
59 Information provided by the MIC's Maquila  Directorate.  
60 WTO d ocument G/SCM/N/186/PRY of 18  February  2010.  
61 WTO documents G/AG/N/PRY/18 of 9  June 2011, G/AG/N/PRY/20 of 14  December  2012, 
G/AG/N/PRY/22 of 10  February  2015, and G/AG/N/PRY/25 of 11  August  2016.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.119.   The public -private sectoral round tables cover the following pr oduction sectors: meat and 
leather; fruit and vegetables; forestry products; textiles and made -up articles; biofuels; stevia 
(a sweetener); pharmaceuticals; mate; tourism; information technology; and a round table on the 
development of new sectors (for exa mple, medicinal herbs, metal working, automotive parts). 
There are also three interinstitutional round tables with the aim of improving the investment 
climate; logistics infrastructure, streamlining formalities and incentives for investment and export.  
3.120.   REDIEX's services include support for trade promotion (exhibitions and international fairs, 
negotiating rounds and trade missions); trade intelligence (technical studies, market surveys, 
statistics, etc.); and financing of investment projects intended to boos t exports. For individual 
companies, financing may cover up to 65% of the cost of the project and up to 75% for groups of 
companies. The resources may be used to pay a number of costs, mostly those for trade 
promotion and market surveys and research, but m ay not be used to acquire capital goods. There 
are also projects to finance activities that help to increase exports by an entire production sector 
("structuring projects"), in which case companies belonging to the corresponding sectoral round 
table may re ceive financing for up to 85% of the amount of the project.  
3.121.   From 2010 to 2016, REDIEX managed the "Export Support" programme financed by a loan 
from the Inter -American Development Bank (IDB) for a total of US$10  million and by local 
resources. At 30  June 2016, the total amount disbursed was US$10.14  million (US$9.02  million 
from the IDB and US$1.2  million from local sources), and had financed 240 projects, benefiting 
some 400 companies. From January to June  2016, the sectors corresponding to the sectoral ro und 
tables exported goods worth US$873  million.62 REDIEX's authorities are working with the IDB on 
fixing the terms for a new loan, which it is hoped will become available in 2018.  
3.2.4.7.2   Export financing, insurance and guarantees  
3.122.   The National Development Bank (BN F) is a first -tier development bank offering banking 
and financial services for production activities, including foreign trade transactions, from own 
resources and those of international organizations. Pursuant to its organic law, Decree -Law 
No. 281/61 of 14 March  1961 (and amendments thereto63), the BNF is an autonomous institution 
with its own legal status, whose resources are legally separate from those of the State. During the 
review period, Law No.  281/61 was amended twice in order to update the maximum  limits on 
loans. The BNF must comply with the limits set and with the prudential rules applicable to financial 
system institutions in general, and the loans it grants are at market interest rates.  
3.123.   The BNF grants loans to exporting firms for investment pro jects in the agricultural, 
industrial, trade and services sectors for the production of goods and services for export, as well 
as investment under the maquila regime. Loans may not exceed US$2  million or its equivalent in 
local currency, per person and per  company64; their term is up to ten years (including a 
two-year grace period) and a 7.95% annual interest rate in guaranies applies.65 According to data 
from the BCP, at the end of December  2016, the BNF's loan portfolio amounted to 
₲2,562,829  million, broken down as follows: consumption (45.2%), agriculture (18.9%), livestock 
(15.8%), industry (9%), services (7.5%), commerce (3.5%) and the financial sector (0.1%).66 No 
loans for export as such were recorded, as was already the case over the period 2011 -2015.  
3.124.   Two other government financing institutions, the Agricultural Equipment Bank (CAH) and 
the Livestock Fund (FG) also provide competit ive financing for rural producers engaged in 
agriculture or raising livestock on a small scale, mostly intended for the domestic market but also 
for export.67 Between January and October  2016, the CAH granted loans to 33,685 producers 
amounting to a total o f ₲197,867  million.68 The FG, for its part, approved 246 loans for a total 
                                                
62 Information provided by REDIEX.  
63 Law No.  281/61 was ame nded by Laws Nos . 2100/03, 2501/04, 4340/11 and 4843/12.  
64 Law No.  4843/12 of 11  December  2012.  
65 Online information from the BNF, viewed at: http://www.bnf.gov.py . 
66 Information provided by the BCP.  
67 The financial p roducts offered by the FG may be viewed at: 
http://www.fondogan.gov.py/index.php/tipos -creditos ; and those of the CAH at: 
http://www.cah.gov. py/productos . 
68 Online information from the CAH, viewed at: http://www.cah.gov.py . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  amount of ₲31,349  million in 2015 and 100 loans for a total of ₲6,835  million in 2016.69 The 
authorities have indicated that an upturn in the placement of loans by the FG is expected in 2017.  
3.125.   No government financing institution or programme offers insurance or guarantee services 
for exports; such services are provided by private firms.  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.3.1.1   Overview  
3.126.   Paraguay has public aid programmes aimed at specific activities, as well as investment 
incentives applicable to Paraguayan and foreign investors. These investment incentives are 
regulated mainly by Law No.  60/90 of 20  December  1990 and its implementing Regulations, and 
by Laws No. 5.102/13 on the  promotion of investment in public infrastructure and the expansion 
and upgrading of goods and services provided by the State, regulated by Decree No.  1.350/14, 
and Law No. 5.542/15 of 11  December 2015 on investment guarantees, the promotion of job 
creatio n, and economic and social development, both of which were adopted during the review 
period.  
3.127.   The regime for the import of raw materials is regulated by Decree No.  11.771/00 of 
29 December  2000, amended by Decree No.  2.884/14 and by Ministry of Finance Reso lution 
No. 1/01.  
3.128.   In 2012, a new national automotive policy (PAN) was introduced by Law No.  4.838.12 of 
4 December  2012, to replace Decree No.  21.944/98 of 16  July 1998, which established 
Paraguay's  national automotive regime (RAN). Also during the review p eriod, Law No. 4.427/12 of 
12 April 2012 introduced incentives for the production, development or assembly of 
high-technology goods; and Law No.  4.903/14 of 22  April 2013 on industrial parks was adopted.  
3.129.   In May 2017, Paraguay notified the WTO SCM Committee  that it did not grant or maintain 
within its territory any subsidy, as defined in Article 1.1 of the Agreement on Subsidies and 
Countervailing Measures, which is specific within the meaning of Article 2 of that Agreement.70 
3.3.1.2   Investment incentives  
3.3.1.2.1   Overview  
3.130.   In Paraguay, investment incentives are governed by Law No.  60/90 of 
20 December  199071, implemented by Decrees Nos . 15.657/92 of 30  November  1992, 7.692/00 of 
23 February  2000, and 22.031/03 of 14  August  2003; and amended by Law No.  2.421/04 of 
25 June 2004.  This investment incentives regime was reaffirmed by the enactment of Law 
No. 5.061/13 of 4  October  2013.72 Moreover, during the review period, Law No. 5.102/13 of 
1 November 2013 on the promotion of investment in public infrastructure and the expansion and  
upgrading of goods and services provided by the State was adopted73, implemented by Decree 
No. 1.350/14 of 12  May 201474, and Law No. 5.542/15 of 11  December 2015 on investment 
guarantees, the promotion of job creation, and economic and social development.75 
                                                
69 Information provided by the BCP. See also Livestock Fund (2015), Memoria 2015 , viewed at: 
http://www.fondogan.gov.py/application/files/9814/7853/9912/Memoria2015.pdf . 
70 WTO document s G/SCM/N/ 95/PRY, G/SCM/N/123/PRY, G/SCM/N/220/PRY, G/SCM/N/253/PRY, 
G/SCM/N/284/PRY, and G/SCM/N/315/PRY  of 11 M ay 2017. 
71 Online information viewed at: http://www.sice.oas.org/investment/NatLeg/Par/L60_90_s.pdf . 
72 Amending the provisions in Law No.  125/92 of 9  January  1992 establishing the n ew tax regime and 
other tax measures. Viewed at: http://www.bacn.gov.py/NDczOA==&ley -n-5061. 
73 Online information viewed at: http://di gesto.senado.gov.py/ups/leyes/8386.pdf . 
74 Online information viewed at: http://snip.hacienda.gov.py/normativas/decreto_1350.pdf . 
75 Online information viewed at: http://digesto.senado.gov.py/ups/leyes/9084.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.3.1.2.2   Law No.  60/90  
3.131.   Law No.  60/90, as amended by Law No. 2.421/04 on fiscal adjustment, gives Paraguayan 
and foreign investors tax incentives provided that the purpose of their investment is to produce 
more goods and services, create permanent jobs, boost expor ts and substitute imports, 
incorporate technology and reinvest profits in capital goods. Exemptions apply to investment in 
financing, capital goods, trademarks, designs and transfer of technology in general, specialized 
technical assistance, mining, hotels  and restaurants, leasing of capital goods, supply of air freight 
and passenger services, waterway transport, land transport of freight in general, public passenger 
transport, health, radio, television, the press, rural and urban fixed telephony, mobile te lephony, 
scientific research, silos, storage, and data transmission services. The aims of Law No.  60/90 are: 
to boost the production of goods and services; to create permanent jobs; to promote exports; and 
to incorporate technology to make production more efficient and make more and better use of raw 
materials, labour and national energy resources.  
3.132.   The specific incentives provided by Law No.  60/90 include the following: (a) exemption 
from the payment of VAT on the purchase of imported or Paraguayan capital goods for direct use 
in the industrial or agricultural production cycle by investors76; (b) exemption from the payment of 
all taxes levied on the incorporation, listing or registration of companies and enterprises; 
(c) exemption from the payment of duty and  internal taxes on imports of capital goods, raw 
materials and inputs for use in investment projects for the manufacture of capital goods; 
(d) exemption from taxes or other levies on remittances and payments abroad in the form of 
interest, commission and c apital, with no specific time-limit, where the investment is financed 
from abroad and amounts to at least US$5  million; and (e) exemption from the payment of taxes 
on dividends and profits generated over a period of ten years, where the project entails 
investment of at least US$5  million. If a project is US$5  million or higher, it must be drawn up by 
experts and/or consulting firms in Paraguay.  
3.133.   The manufacturing sector is the main beneficiary of Law No.  60/90 as it accounted for 59% 
of investment in 2015, f ollowed by the services sector (18%), agriculture (16%), and mining and 
quarrying (7%).  
3.3.1.2.3   Promotion of investment in public infrastructure and the expansion and 
upgrading of goods and services provided by the State  
3.134.   The objective of Law No. 5.102/13 on the p romotion of investment in public infrastructure 
and the expansion and upgrading of goods and services provided by the State is to lay down rules 
and mechanisms to promote investment in public infrastructure, through public -private 
partnerships, and in the supply of services for which such investment is earmarked or ancillary 
services. The new Law also aims to promote investment in the production of goods and the supply 
of services consonant with the objectives of government organizations, institutions, Stat e-owned 
enterprises and companies in which the State has a holding. Public -private partnership agreements 
may cover different types of project: infrastructure and service management, including projects for 
highways, railways, ports, airports, waterways, dr edging and maintaining navigability on rivers; 
social infrastructure; electricity infrastructure; urban improvement, upgrading and development; 
and supply of drinking water and sanitation, in addition to other investment projects of public 
interest in infr astructure and services.  
3.3.1.2.4   Investment guarantees, the promotion of job creation, and economic and 
social development  
3.135.   The objective of Law No. 5.542/15 on investment guarantees, the promotion of job 
creation, and economic and social development is to protect capital investment in the creation of 
industries or other production activities established in Paraguay which contribute to job creation 
and economic and social development, mainly by incorporating value added into Paraguayan or 
imported raw materials. The  incentives provided by the Law are available to Paraguayan or foreign 
natural or legal persons who invest capital in creating industries or other production activities 
                                                
76 Law No.  2.421/04 on fiscal adjustment amended Law No.  60/90 in order to extend the incentives to 
the use of Paraguayan products at any stage of the production proc ess (previously it only applied to the first 
stage of production).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  which contribute to job creation and economic and social development. The resources may  be in 
the form of money, physical assets or any type of technology, if this can be capitalized.  
3.136.   In order to be eligible for the incentives under Law No.  5.542/15, investors must set up a 
public limited company and sign a contract with the State. The contr act determines the time-limit 
within which the company must fully integrate this capital, which may not be more than five years 
for investment exceeding US$5  million and two years for lesser sums.  
3.137.   The beneficiaries of Law No.  5.542/15 may transfer capital and net profits abroad. Capital 
may be transferred two years after the company in question started up, while there is no 
time-limit for profits. Beneficiaries also enjoy an invariable rate of income tax on the beneficiary 
company's activities for a period of up to ten years as of its start -up date at the same rate as that 
in effect when the respective contract was signed. For investment of US$50 to US$100 million, the 
period of ten years for the invariable income tax rate may be extended to up to 15 years, 
depending on the specific features of the investment. For investment of US$100  million or more 
with the aim of developing industrial projects, the companies involved in such projects may, 
exceptionally, be given an invariable tax rate for a maximum period of up to 20 years.77 
3.138.   Law No.  5.542/15 also provides a special regime for exports: if projects involve export of 
some or all of the goods produced, the company concerned may retain a percentage of foreign 
exchange abroad when this is necessary to pay legally  authorized commitments or to cover the 
remittance of net profits from the investment.78 
3.139.   The Law determines further incentives for industries with a high social impact, for 
example, exemption from the additional 5% tax on income when distributing profits. M oreover, the 
dividends and profits earned by shareholders or partners in the beneficiary enterprises receive a 
reduction in the tax on the remittance of profits abroad amounting to 1% for every 100 direct jobs 
created, up to a maximum of 50% of the total t ax applicable. Industries have to meet the 
following requirements before investment is considered as having a high social impact and 
benefiting from these incentives: (a) be located in zones with a relatively lower level of 
development and few jobs for the  population, but with high demand for work; (b) require a large 
labour force and promote the training of middle management; (c) have as their purpose the 
incorporation of value added into raw materials through industrialization; and (d) not degrade the 
environment to any significant or irreversible degree.79 
3.3.1.2.5   Raw materials import regime  
3.140.   Raw materials can be imported under a special regime, established by Decree 
No. 11.771/00 of 29  December  2000, as amended by Decree No.  2.884/14 of 30  December  2014 
and Minist ry of Finance Resolution No.  1/01. Decree No.  11.771/00 allows application of a 
0% tariff on the import of raw materials and inputs to be used by agricultural or industrial 
enterprises in their own production processes. The MIC's Special Regimes Directorat e (DRE) is 
responsible for administering special regimes. The aim of this particular regime is to boost 
investment and to promote existing industrial enterprises by means of tariff exemptions.  
3.141.   To be eligible for this regime, industries must obtain a tariff  exemption certificate and be 
entered in the MIC's Industrial Register, following an application approved by the Interinstitutional 
Technical Commission (CTI). The following are the certification requirements: (a) have an 
approved annual production plan; ( b) the raw materials or inputs requested must not be produced 
in Paraguay; and (c) the value of the imports f.o.b. must not be less than US$1,500. Formalities 
are completed online. Every two months, the beneficiary industry must provide the DRE with a 
report on the use and purpose of the raw materials and inputs imported under this special regime, 
as prescribed by Article  9 of Ministry of Finance Resolution No.  1/01.  
3.3.1.2.6   Automotive regime  
3.142.   The review period saw the adoption of Law No.  4.838/12 of 4  December  2012, which 
establishes the national automotive policy (PAN), implemented by Decree No.  10.769/13 of 
                                                
77 Article  12 of Law No.  5.542/15.  
78 Ibid., Article 13.  
79 Ibid., Article 21.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  12 March  2013. The PAN's objective is to promote investment and domestic industry, increase 
competitiveness, create jobs, train the work force, facilitate the transfer of technology and boost 
research and innovation in the sector. Law No.  4.838/12 therefore grants tax incentives to 
Paraguayan and foreign investors, as well as tax benefits to encourage the manufacture and/or 
assembly of motorized and non -motorize d vehicles, auto parts and spare parts in general. This 
new regulation grants incentives to the sector on a permanent basis and replaces the regime 
created by Decree No.  21.994/98 of 16  July 1998, which introduced the RAN. The exemptions 
provided by Law No . 4.838/12 were confirmed by the enactment of Law No.  5.061/13 of 
4 October  2013 amending the provisions of Law No.  125 of 9  January  1992 establishing the new 
tax regime and containing other tax -related measures.  
3.143.   The incentives regime in Law No.  4.838/12 a pplies to the production and/or assembly of 
the goods of chapter 87 of the NCM ("Vehicles other than railway or tramway rolling -stock, and 
parts and accessories thereof").80 Paraguayan or foreign natural or legal persons legally registered 
in Paraguayan nat ional territory are eligible, provided that they make investment intended to 
produce and/or assemble such goods.  
3.144.   The fiscal incentives available under this regime include exemption from payment of all 
customs tariffs on the import of capital goods, raw mat erials, components, kits, parts, spare parts 
and manufacturing inputs to be used to produce motorized or non -motorized vehicles, auto parts 
and spare parts in general. In addition, the VAT payable on imports of capital goods, raw 
materials, components, kit s, parts, spare parts and manufacturing inputs to be used to produce 
and/or assemble the goods concerned is calculated on a tax base corresponding to 20% of the 
customs value expressed in foreign currency (40% of the customs value in the case of heading 
NCM 87.11). It is also stipulated that VAT must be paid when the goods are disposed of, using as 
the tax base 20% of the selling price (40% in the case of goods in heading NCM 87.11).81 
3.145.   The following are some of the requirements to be eligible for the incenti ves offered under 
the automotive regime: (a) production and/or assembly of the goods must be covered by the 
scope of the Law; (b) the creation of permanent jobs employing a minimum of 50% of Paraguayan 
nationals; (c) incorporation of technology that increa ses production efficiency, makes more and 
better use of raw materials, labour and national energy resources; (d) promotion of exports and/or 
import substitution; (e) submission of an investment project for plants producing and/or 
assembling goods coming wi thin the scope of the Law, which must include an assembly line, trial 
infrastructure and equipment for marking vehicle identification numbers (VIN); and (f) for 
investment already made in the sector, submission of the latest ministerial resolutions for eac h 
sphere of activity, investment projects and annual production plans previously approved under 
Law No.  60/90 and the regime in Decree No.  21.944/9882, which can prove that there has been 
investment in capital goods and that the goods covered by the scope o f the Law are being 
produced and/or assembled.83 
3.146.   Investment in the automotive sector has increased in recent years: in 2015, it amounted 
to US$71.5  million, 62.5% more than in 2011.  
3.3.2   Other regimes and benefits  
3.147.   Law No.  4.427/12 of 12  April 201284 provides ince ntives for Paraguayan or foreign natural 
or legal persons who invest in capital goods, raw materials, components, kits, parts and spare 
parts for the production, development and/or assembly of high -technology goods. Beneficiaries of 
this regime are exempt from payment of all customs tariffs on the import of raw materials, 
components, kits, parts and spare parts. In addition, they pay VAT at a rate of 10% on 15% of the 
customs value and the tax base for determining the ISC is 10% of the factory selling price . The 
requirements for benefiting from the incentives provided under Law No.  4.427/12 include the 
following in particular: the creation of permanent jobs employing a minimum of 50% of 
Paraguayan nationals; preparation of plans for the transfer of technolog y and training of the work 
force; and development of programmes in support of social sectors.  
                                                
80 Article 2 of Law No.  4.838/12.  
81 Ibid.,  Articles 6, 7 and 8.  
82 Decree No.  21.944/98 of 16  July 1998 establishin g Paraguay's automotive regime (RAN).  
83 Article 5 of Law No.  4.838/12.  
84 Online information viewed at: http://digesto.senado.gov.py/ups/leyes/7746.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.148.   During the review period, Law No.  4.903/14 of 22  April 2013 on industrial parks was also 
adopted, determining incentives for such parks, whether owned by Paraguay an nationals or by 
foreigners. The MIC is responsible for authorizations to create, establish and build industrial 
parks.85 The incentives include the following: lower municipal taxes, a 50% reduction in the 
industrial permit fee to be paid to the municipal  authorities and 100% exemption from VAT for 
leasing of plots or industrial plants situated in the parks. These incentives are in addition those 
determined in Law No.  60/90 and other relevant incentives.  
3.149.   Paraguay's authorities also support domestic compani es through government procurement 
procedures by giving a 20% preference margin for products or services of Paraguayan origin.  
3.3.3   Standards and other technical requirements  
3.3.3.1   Technical regulations  
3.150.   In Paraguay, there is no centralized agency for drafting technica l regulations. These are 
prepared and implemented by several authorities, including the MIC, the MSPBS, the MAG and 
other ministries and regulatory agencies. Although each follows its own procedures, they usually 
follow those determined in Decree No.  1.765 /09 on the format for technical regulations and 
conformity assessment procedures drawn up within their respective areas of competence. 
Furthermore, the MIC is responsible for drafting and coordinating policies on technical regulations, 
which it coordinates  with the National Technical Committee on Technical Barriers to Trade, created 
by Decree No.  1.766/09. This Committee constitutes the forum in which technical regulations are 
examined and Paraguay's position on technical barriers to trade (TBTs) is decided  for the 
negotiations in which Paraguay takes part at the regional level (LAIA), bi -regional level 
(MERCOSUR -EU) and MERCOSUR's other external relations. The Committee may convene the 
private sector when an international notification might have an impact o n Paraguay's trade.  
3.151.   The procedure for drafting a technical regulation (RT) usually commences by identifying 
Paraguay's need to protect a legitimate objective. It may stem from a request by an interested 
third party or be elaborated ex officio . Pursuant to Decree No.  1.765/09, international standards 
must be used as the basis for developing RTs unless they are ineffective for achieving the 
legitimate objectives. Accordingly, most RTs are based on international standards, which may be 
adopted directly or adap ted. In the latter case, Paraguay, through the corresponding government 
authority, draws up its own RT based on regional or international standards. A draft RT may also 
be prepared by making an INTN Paraguayan standard mandatory (see below). Whenever an RT  is 
drafted, it must be accompanied by the establishment of a conformity assessment procedure for 
the product. Once the RT has been prepared, interested parties are consulted. If the measure 
might affect trade, the draft is notified to the WTO. When an INT N national standard becomes an 
RT, it is declared mandatory, either by decree or by means of a resolution. With the exception of 
this case, the INTN does not draft RTs directly, but is usually consulted by government authorities 
when they are preparing RTs . There is also a (voluntary) guide of good practice for regulation and 
a risk assessment (ER) and impact (EIR) methodology for RTs. The institutions belonging to the 
TBT Committee are aware of this guide.  
3.152.   According to Paraguay's legislation, all draft RTs  must be notified. Once they have been 
notified and published, a period of 60 to 90 days is given in which to receive comments, unless it 
is essential to approve the RT urgently. The National Information and Notification System (SNIN)86 
deals with the comme nts received at the international level. Once comments have been received, 
either internally or from other WTO Members, the draft regulation is reviewed and the competent 
ministry or body decides whether to adopt the technical regulation, with or without a mendment. 
RTs are adopted in the form of laws, decrees or resolutions, as applicable, and published on SNIN's 
                                                
85 Article  9 of Law No.  4.903/14.  
86 The S NIN, created by Decree No.  6.499/05, is the national enquiry and notification system for RTs, 
standards and conformity assessment procedures. The private sector and the following government institutions 
participate in the SNIN: MIC, MRE, INTN, MSPBS, MOPC,  the National Accreditation Agency (ONA), SENAVE, 
SENACSA, INAN, DNVS, National Transport Directorate (DINATRAN) and SEAM. Decree No.  1.765/2009 
approved the regulations and determined the strategy for the SNIN, whose goal is to ensure compliance with 
Paraguay's commitments in international agreements and systems relating to RTs, standardization and 
conformity assessment that affect foreign trade. Its specific objective is to enforce commitments on 
notification, transparency and information under the WTO TB T Agreement and other international trade 
agreements in which Paraguay participates.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  website and in the Official Journal. For imports, conformity with an RT is checked at the border in 
accordance with internationally recognized pro cedures. Domestic products are inspected in situ . 
Products subject to Paraguayan RTs must be certified by approved and accredited bodies 
(see below).  
3.153.   Paraguay has notified the WTO of two contact points for enquiries relating to RTs. For 
questions regarding  RTs, standards and conformity assessment procedures, the contact point is 
the SNIN Coordinating Unit, while for notifications to the WTO, information or formal questions 
from Members regarding TBTs, coordination is through the WTO Reference Centre within the 
Directorate of Multilateral Economic Organizations in the MRE's Under -Secretariat for Economic 
Relations and Integration.87 In 2003, Paraguay notified the WTO that it had accepted the Code of 
Good Practice annexed to the WTO Agreement on Technical Barri ers to Trade.88 
3.154.   Over the period 2011 to May  2017, Paraguay submitted 73 new notifications on draft RTs, 
addendums and corrigendums to the WTO Committee on Technical Barriers to Trade. Since it sent 
in its first notification on RTs in September  2006, Paragua y has submitted 92 new notifications to 
the WTO.89 Table 3.20 shows the new RTs adopted over the period 2011 to May  2017.  
Table 3.20 Principal technical regulations adopted over the period 2011 to May  2017  
Regulation  
Resolution No.  327/13 – Implementing Decree No.  10.598 of 31  January  2013 – Household sanitary products  
Decree No.  11.278/13 – Extending the time -limit in various Articles on cement imports  
Resolution No.  1.336/13 – Technical specifications for  the import and sale of fuel  
Decree No.  960/13 – Partly amending Articles 7 and 10 of Decree No.  10.397/07 determining the minimum 
levels of quality for fuel, supplementing Decree No.  10.911/00 regulating the refining, import, distribution and 
sale of pet roleum -based fuel and repealing Resolution No.  435/2001  
Resolution No.  1.478/13 – Decanters – amending and supplementing Articles in Resolution No.  741 – Company 
registration  
Decree No.  2.363/14 – Mechanism for the import of cement  
Resolution No.  1.014/14 – Power cables, manufacture, import and sale of power cables  
Resolution No.  821/14 – Amending Articles  3, 4, 7, 9 and the annex to Resolution No.  553/09 of 
26 August  2009 regulating the manufacture, import and sale of cables (PVC)  
Decree No.  1.836 /14 – Extension of the time -limit specified in Article 3 of Decree No.  5.515 – Mechanism for 
the import of cement  
Resolution No.  367/15 – Procedures for quality control and certification, determining the price of biodiesel fuel 
Type I and gas oil Types I I and III  
Decree No.  3.324/15 – Amending and supplementing Decree No.  2.999 of 27  January  2015, determining the 
selling price to the public of naphtha not exceeding 85 octane and gas oil/diesel fuel Type III (Type C)  
Decree No.  2.999/15 – Selling price  to the public of naphtha not exceeding 85 octane and gas oil/diesel fuel 
Type III (Type C) and restriction on the import of virgin naphtha and naphtha not exceeding 85 octane  
Decree No.  4.562/15 – Determining new technical specifications for petroleum -based fuel for import and sale in 
Paraguay and repealing Resolution No.  1336 of 22  November  2013 
Decree No.  4.711/15 – Determining the procedure for controlling the use of sugar -cane based alcohol mixed 
with gasoline under 97 octane  
Resolution No.  905/15  – Supplementing Article  1 and amending Article  36 of Resolution No.  916/10 of 
13 December  2010 declaring mandatory application of Paraguayan standards for portable fire extinguishers 
and determining requirements for the operation of companies manufacturin g containers for portable fire 
extinguishers, assembling portable first extinguishers, services for inspecting, maintaining and recharging 
portable fire extinguishers and inspecting containers for portable fire extinguishers  
Resolution No.  13/16 – Labell ing of lubricants for automotive or industrial use for sale in Paraguay, whether of 
domestic or foreign manufacture  
Resolution No.  370/16 – Extending the validity of Resolution No.  13/16 of 6  January  2016 until 15  July 2016, 
determining the labelling of lubricants for automotive or industrial use for sale in Paraguay  
Resolution No.  502/16 – Amending technical specifications for some parameters of naphtha, Annexes I and II 
to Decree No.  4.562/15; and repealing Resolution No.  1.336/13  
                                                
87 WTO document G/TBT/ENQ/38 of 30  May 2011.  
88 WTO document G/TBT/CS/N/151 of 25  April 2003.  
89 The latest notification is contained in WTO document G/TBT/N/PRY/89 of 20  September  2016.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Regulation  
Resolution No.  1.224 /16 - Amending technical specifications for some parameters of gas oil Type A/Type I and 
Type C/Type III, Annexes I and II to Resolution No.  434/16 amending technical specifications for some 
parameters of gas oil Type  I and Type III, Annexes I and II to De cree No.  4.562/15; and repealing Resolution 
No. 434/16 . 
Decree No.  2.881/14 – Implementing Article 39 of Law No.  1.119/97 on health and other products and 
determining standards for obtaining and renewing sanitary registration and for the approval and func tioning of 
companies manufacturing, fractioning, exporting, acting as representatives for or importing personal hygiene, 
cosmetic and perfumery products; and repealing Decrees Nos . 8.830/06 of 29  December  2006, 8.844/12 of 
3 May 2012, and 9.129/12 of 20  June 2012 
Decree No.  2.882/14 – Implementing Article 40 of Law No.  1.119/97 on health and other products and 
determining standards for obtaining and renewing sanitary registration of Risk 1 and Risk 2 household sanitary 
products; and repealing Decree No.  8.843/12 of 3  May 2012 
Decree No.  8.465/12 – Amending Article  1 of Decree No.  25.513/72 and declaring mandatory the application of 
Paraguayan standards NP 10 012 11 and NP 10 013 11 throughout the Republic  
Resolution No.  353/17 – Implementing Article  2 of Decree No.  5.537/16 implementing Law No.  5.414/15 on 
promotion of a reduction in the use of polyethylene plastic and determining the prior import licence procedure 
for plastic and biodegradable bags  
Decree No.  6.832/17 – Introducing registration of imp orters of mobile cellular telephone devices, registration 
of importers of parts for mobile cellular telephone devices, and registration of importers of motherboards 
(electronic boards or basic boards) alone (those not incorporated into finished mobile cell ular telephone 
devices), establishing mandatory certification by the National Telecommunications Commission (CONATEL) of 
mobile cellular telephone devices, the prior import licensing procedure for mobile cellular telephone devices, 
the non -automatic prior import licensing procedure for parts for mobile cellular telephone devices, and the 
non-automatic prior import licensing procedure for motherboards (electronic boards or basic boards) alone 
(those not incorporated into finished mobile cellular telephone de vices)  
Decree No.  7.103/17 – Introducing registration of manufacturers or importers of incandescent or fluorescent 
lamps, under the MIC, establishing prior import licensing and mandatory certification of energy efficiency.  
Source:  Information provided by the authorities.  
3.155.   The SNIN makes Paraguay's regulations and notifications from other WTO Members in 
relation to RTs and TBTs available to exporters and the public. SNIN users can participate by 
sending in their comments on Paraguayan preliminary draft RT s or international notifications 
pending approval. In order to do this, they must register with the "exporters' early warning 
service".90 By May  2017, the SNIN's website reported 124 RTs, including conformity assessment 
procedures, within Paraguay's regulat ory framework.91 The RTs adopted since the previous review 
in 2011 concern products such as seeds, cotton, chemicals, service providers, food, meat, 
automobiles, made -up articles, footwear, fuel, wire, iron bars, soya beans, live animals, household 
sanitary  products, cables, and salt. The SNIN had over 5,562 international notifications in its 
database on the same date.  
3.156.   A large number of RTs adopted by Paraguay are regulations adopted at regional level by 
the Common Market Group (GMC), MERCOSUR's main executi ve body, which enacts MERCOSUR 
technical regulations in the form of resolutions. Within the GMC, Sub -Working Group No.  3 
(SGT No. 3, Technical Regulations and Conformity Assessment), made up of various commissions, 
prepares draft technical regulations, inc orporates comments resulting from the internal 
consultation process, and submits the final draft to the GMC for approval.92 The draft regulation is 
notified to the WTO TBT Committee before adoption by MERCOSUR or incorporation into the 
internal legal system  of member countries.93 Following approval, the MERCOSUR RT (RTM) has to 
be incorporated into domestic legislation. During the period 2011 -2016, nine RTMs were 
harmonized, eight on food and one on metrology.  
3.157.   The MERCOSUR ECONORMAS project (support for deepe ning MERCOSUR's economic 
integration process and sustainable development), carried out between 2010 and 2015 enabled 
                                                
90 Online information from the SNIN, viewed at: http://www.snin.gov.py/publico/Default.aspx . 
91 Online information from the SNIN, Normativa Paraguaya Relacionada al Comercio , viewed at:  
http://www.snin.gov.py/publico/normapy.aspx . 
92 The various commissions belonging to SGT Nº 3 include: Food; Conformity Assessment; Gas; 
Automotive Industry; Toys and Safety of Bicycles for Adult Use; Metrology; and Safety of Electrical Goods. The 
commissions are organized in the form of sub -working groups made up of specialists from States Parties, who 
draw up the draft RTs.  
93 Online information from the MERCOSUR Secretariat, viewed at: http://www.mercosur.int . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Paraguay to equip three testing laboratories for the metalworking (steel bars (INTN)), electrical 
goods (especially transformers (Engineeri ng Faculty/ National University  of Asunción  (FIUNA))) and 
wood/furniture (parquet and multilaminate flooring) ( Faculty of Agricultural Sciences /National 
University  of Asunción  (FCA/UNA) ) sectors.  
3.3.3.2   Standards and metrology  
3.158.   The drafting and adoption of standard s in Paraguay is the responsibility of the INTN, a 
public, autonomous and decentralized entity with its own legal status and jurisdiction throughout 
Paraguay. It was set up by Law No.  862/63 and reorganized by Law No.  2.575/05. Relations 
between the INTN a nd the Executive are through the MIC, the INTN being the body responsible for 
improving quality, productivity and certification of the conformity of domestic products with 
technical standards through its technical bodies: the National Certification Agency (ONC), the 
National Metrology Agency (ONM), the National Standardization Agency (ONN), the National 
Inspection Agency (ONI), the Research and Technological Assistance Agency (OIAT) and the 
Directorate of Regulation.94 Pursuant to Decree No.  15.552/96, the I NTN also acts as the ONC, 
certifying products, systems and services.  
3.159.   Paraguayan standards are prepared, adopted or harmonized by the INTN upon request by 
the private or public sector. The INTN prepares and approves Paraguayan standards through its 
technica l standardization committees (CTN). At May  2017, 64 CTNs had been set up. The 
procedures followed during this process are based on international guidelines and standards 
(ISO/IEC). Work is under way to adopt, harmonize and draft standards.  
3.160.   Requests to draf t a standard have to be forwarded to the INTN, which designates the 
technical committee competent to prepare a draft standard. Once prepared, the draft is put up for 
public consultation for a period of 60 days, after which it is approved by means of an INT N 
resolution. As the INTN is a participant in ISONET, standards drawn up are sent to the ISO/IEC 
Information Centre in Geneva. At May  2017, 804 Paraguayan standards were in force. Since the 
previous review in 2011, 263 standards have been prepared (198 new  standards and 65 revised 
standards). The majority of INTN standards concern the construction, electricity, dairy produce, 
wood and textiles sectors.  
3.161.   The INTN is a member of the MERCOSUR Standardization Association (AMN), the regional 
non-governmental inst itution responsible for harmonizing standards and composed of each 
member country's standardization agency.95 Relations between the GMC and the AMN are through 
SGT No.  3, to which the AMN submits its annual work plan and twice -yearly progress report, 
attach ing the standards approved. The AMN's activities are conducted through sectoral 
committees, which represent industry segments in each country. Adoption of MERCOSUR 
standards as national standards or RTs by each member country is optional. At May  2017, the 
AMN had adopted 620 MERCOSUR standards.96 
3.162.   The National Council for Science and Technology (CONACYT) is responsible for framing 
Paraguay's domestic policies and strategies for science, technology, innovation and quality and 
also has the task of coordinating the national quality system, which has the following components: 
standardization, metrology and accreditation, as well as information and notification of technical 
regulations.  
3.163.   The Paraguayan National Codex Alimentarius Committee (CONACAP), created by 
Decree No. 17.487 of 11  June 1997, is composed of representatives of the government and private 
sectors and analyses, evaluates and makes recommendations to the Government concerning 
food-related standards. It advises the Government on harmonizing domestic leg islation and 
regulations on foodstuffs with the standards, guidelines and codes of practice drawn up by the 
Codex Alimentarius Committee. The INTN acts as the permanent executive secretariat of the 
CONACAP.  
3.164.   The INTN, through the ONM, is responsible for the  implementation and operation of the 
national metrology system, pursuant to Law No.  937/82 on metrology and its implementing 
                                                
94 Online information from the INTN, viewed at: http://www.intn.gov.py/main_menus/verMenu/34 . 
95 Online information from the AMN, viewed at: http://www.amn.org.br/es . 
96 Online information from the AMN, viewed at: http://www.amn.org.br/br . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Decree No.  1.988/99. The ONM is responsible for the implementation and functioning of the 
National Metrology Laboratory, for keepin g national measurement standards, and for drawing up 
RTs in each specific area of metrology. It also provides the services for controlling measuring 
instruments used in business, industry and in health services, as well as for monitoring the content 
of pac kaged goods. It has the following laboratories accredited by the ONA: mass; calibration of 
scales; volume and density; pressure; power; dimensions; time and frequency; electricity; and 
temperature.97 Paraguay is a member of the International Organization of  Legal Metrology (OILM), 
through the INTN, and of the Inter -American Metrology System (SIM).  
3.3.3.3   Conformity assessment  
3.165.   The INTN is the national certification agency pursuant to Decree No.  15.552 of 
26 November  1996. It has testing/calibration and certification  laboratories accredited by the 
National Accreditation Agency (ONA/CONACYT) and the German Accreditation Agency Deuts che 
Akkreditierungsstelle -DAkkS.  
3.166.   The mechanism and the steps to be taken for the adoption of conformity assessment 
procedures are similar t o those for the adoption of RTs, including a period for public consultation 
and publication in the Official Journal. A number of government or private bodies are responsible 
for carrying out these procedures, which are part of technical regulation.  
3.167.   For the  purposes of assessing conformity, certification, inspection at the port of entry and 
in retail outlets may be used, as well as sampling. Certification is for the most part voluntary and 
is usually provided by accredited third parties. Products subject to RTs constitute an exception as 
certification is mandatory. At May  2017, the products subject to mandatory certification included: 
measuring equipment and instruments; steel bars; electric cables; cement; some fuels (unleaded 
petrol, aviation fuel, kerosene , gas oil, fuel oil); containers for liquefied petroleum gas (LPG); 
fire extinguishers; matches; mate98; reusable polyethylene plastic bags99; cellular devices; 
incandescent and fluorescent lamps; toys, tyres; and steel rods and bars. Paraguay does not 
autom atically recognize the certification of products or the systems of foreign certification 
agencies, except in special cases and on a temporary basis.  
3.168.   Special labelling requirements apply to certain products, for example, wire; packaged 
foodstuffs; sugar in bags; iron bars; cement; footwear; made -up articles and textiles; household 
sanitary products; toys; lubricants; and incandescent and fluorescent lamps. During the review 
period, a new regulation on labelling the following products was introduced: sugar in  bags 
(Ministerial Resolution No.  46/2016); lubricants (Ministerial Resolution No.  13/16) and household 
sanitary products (Ministerial Resolution No.  327/13 and Decree No.  10.598/13).  
3.169.   Paraguay does not in principle accept as equivalent the technical regula tions adopted or 
the tests conducted by its trading partners. By May  2017, it had not signed any agreement on 
mutual recognition and had not notified the WTO of any multilateral recognition agreement on 
conformity assessment.  
3.3.3.4   Accreditation  
3.170.   Paraguay has an accreditation body, the National Accreditation Agency (ONA), set up in 
1998 by Decree No.  20.660 of 20  April 1998. It is currently governed by Law No.  2.279/03 of 
26 June 2003 and is part of CONACYT. As an integral part of the national quality system, ONA is 
the body responsible for directing and managing the national accreditation system and for granting 
accreditation at the national level to testing and calibration laboratories and agencies that certify 
products, quality management or environmental manage ment systems, and individuals, as well as 
other agencies or bodies requiring accreditation or assessment of the competence of their services, 
                                                
97 Online information from INTN, viewed at: http://www.intn.gov.py/metrologia -intn.php . 
98 Decree No.  17.595/02.  
99 Resolution No.  353 of 27  March  2017.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  according to internationally recognized systems.100 Accreditation by ONA authorizes these entities 
to carry out acti vities in the mandatory as well as the voluntary sphere.  
3.171.   The ONA keeps a register of institutions, bodies and agencies accredited in Paraguay, as 
well as a register of assessors and technical experts. In 2011, it became a signatory to the 
Multilateral Reco gnition Arrangement of Inter -American Accreditation Cooperation (IAAC) in 
respect of testing laboratories, product certification agencies and inspection agencies, and has 
signed the Mutual Recognition Arrangement with International Laboratory Accreditation  
Cooperation (ILAC).101 The ONA represents Paraguay at regional and international accreditation 
forums and is empowered to sign bilateral or multilateral accreditation recognition agreements.  
3.172.   Pursuant to Law No.  2.279/03, the Permanent Technical Committee on  Accreditation 
(CTPA), under CONACYT, is responsible for issuing technical rulings which constitute the decision 
on the concession, extension, reduction, suspension or annulment of accreditation or 
re-accreditation.  
3.173.   According to the provisions in Decree No . 3.900/2010 of 5  February  2010, all conformity 
assessment bodies providing services to the Government must be accredited by ONA, which has 
the following accreditation programmes: testing and calibration laboratories (based on 
NP-ISO/IEC  17025); product ce rtification (NP guideline ISO/IEC 65); and inspection/verification 
(NP-ISO/IEC 17020). Resolution No.  339/2016 established new requirements for the registration 
of natural and/or legal persons providing sampling services for plant products and by -products and 
laboratory testing services. This Resolution also approved the procedure for registration, approval 
and recognition of Paraguayan and international laboratories.  
3.174.   Accreditation requires an application to be submitted to ONA, accompanied by supporting 
documents. An assessment is carried out on the basis of the application, as well as an assessment 
in situ . To be accredited, applicants must also comply with the reference standard for the sector in 
which they wish to be accredited, as well as with ONA's pol icies, regulations and criteria. Once 
accreditation has been given, the accredited body must undergo periodic evaluations in order to 
keep it. Laboratories and other entities are accredited in accordance with international standards, 
notably ISO/IEC 17011,  and with the guidelines laid down by ILAC, IAAC, and the International 
Accreditation Forum (IAF).  
3.175.   By May  2017, 48 conformity assessment agencies had been accredited for quality systems; 
five for product certification; one for certification of persons; as well as 27 testing laboratories, 
six calibration laboratories and nine inspection agencies, all established in Paraguay.102 
3.3.4   Sanitary and phytosanitary regulations  
3.3.4.1   Legal and institutional framework  
3.176.   Paraguay 's legislation on the application of sanitary and phy tosanitary (SPS) measures 
comprises several domestic laws and the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement). Pursuant to the SPS Agreement, Paraguay has notified 
the WTO that SENAVE, SENACSA and the MAG are the  national enquiry points for sanitary and 
phytosanitary matters.103  
3.177.   The following are among the principal regulations governing SPS measures: Law 
No. 672/24 or Organic Law of the Agricultural Protection and Plant Health Inspection Directorate; 
Law No.  836/8 0 on the Health Code; Law No.  123/91 adopting new standards of phytosanitary 
protection; Law No.  385/94 on seeds and the protection of cultivars and its implementing 
Regulations; Law No.  2.426/0 4 establishing SENACSA and its implementing Regulations; Law 
No. 2.459/04 establishing SENAVE; Law No.  3.742/09 on the control of phytosanitary products for 
                                                
100 The national quality system is composed of: the National Quality Commission (CNC); the National 
Accreditation Agency ( ONA); the National Standardization Agency (ONN); the National Metrology Agency 
(ONM); and the National Information and Notification System (SNIN).  
101 Online information from the ONA, viewed at:  http://www.conacyt .gov.py/ona . 
102 Idem.  
103 WTO document G/SPS/ENQ/26 of 11  March 2011.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  agricultural sanitary use; and Decree No.  6.626/05 establishing the National Technical Committee 
on Sanitary and Phytosanitary Measures (Table 3.21).  
3.178.   Also formi ng part of Paraguay 's regulatory framework for sanitary and phytosanitary 
matters are the international treaties and conventions signed and ratified, in particular the 
Convention on the establishment of the Southern Cone Plant Health Committee (COSAVE)104, the 
International Convention for the Protection of New Varieties of Plants and the International Plant 
Protection Convention. Pursuant to COSAVE 's recommendations, Paraguay adopted the system for 
the phytosanitary accreditation of imported plant products (A FIDI).105 
3.179.   During the review period, a number of laws and standards relating to sanitary and 
phytosanitary activities were adopted. These include Law No.  4.866/13 amending and 
supplementing Law No.  2.459/04 establishing SENAVE; Law No.  5.264/14 on promotion o f the 
dairy chain, boosting domestic production and promoting the consumption of dairy products; 
Decree No.  9.699/12 establishing the National Commission on Agricultural and Forest Biodiversity 
(CONBIO); Decree No.  1.244/14 establishing the national system  for the traceability of plant 
products and by -products (SITRAVE); and Decree No.  3.966/15 amending and supplementing 
Decree No.  17.487/97 creating Paraguay 's National Codex Alimentarius Committee (CONACAP).  
Table 3.21 Principal regulatory instruments composing Paraguay 's legal framework for 
sanitary and phytosanitary measures  
Number and date  Title  
Laws   
Law No. 672/24 of 7  October 1924  Organic law of the Agricultural Protection and Plant Health 
Inspection Directorate  
Law No. 836/80 of 15  December 1980  Paraguay's Health Code  
Law No. 21/90 of 9  August 1990  Approving and ratifying the Convention on the establishment of 
the Southern Cone Plant Health Committee (COSAVE)  
Law No. 123/91 of 9  January 1991  Adopting new standards of phytosanitary protection  
Law No. 385/94 of 11  August 1994  Seeds and protection of cultivars  
Law No. 988/96 of  14 November 1996  Approving the International Convention for the Protection of 
New Varieties of Plants  
Law No. 2.135/03 of  30 January 2003  Approving the Rotterdam Convention on the Prior Informed 
Consent Procedure for Certain Hazardous Chemicals and 
Pesticides in International Trade  
Law No. 2.309/03 of 3  December 2003  Approving the Cartagena Protocol on Biosafety to the 
Convention on Biological Diversity  
Law No. 2.426/04 of 28  July 2004  Establishing the National Animal Quality and Health Service 
(SENACSA)  
Law No. 2.459/04 of 4  October 2004, 
supplemented and amended by Law 
No. 4.866/13 of 8  January 2013  Establishing the Na tional Plant and Seed Quality and Health 
Service (SENAVE)  
Law No. 2.721/05 of 3  October 2005  Approving the International Plant Protection Convention (IPPC)  
Law No. 3.481/08 of 6  June 2008  Promotion and control of organic production  
Law No. 3.519/08 of  25 June 2008  Protection of test data requested by the health authority for the 
approval of phytosanitary products  
Law No. 3.556/08 of 9  July 2008  Fishing and aquaculture  
Law No. 3.742/09 of 10  December 2009  Control of phytosanitary products for agricu ltural sanitary use  
Law No. 5.264/14 of 25  June 2014  Promotion of the dairy chain, boosting domestic production and 
promoting the consumption of dairy products  
Decrees   
Decree No. 3.255/89 of 19  October 1989  Banning the production, import, marketing an d use of hormonal 
substances for the fattening of animals whose meat and 
products are intended for human consumption and regulating 
the use of hormones in animal breeding  
Decree No. 139/93 of 3  September 1993  Adopting a system of phytosanitary accreditati on of imported 
plant products (AFIDI)  
                                                
104 This Convention was adopted in the context of Paraguay 's commitments as a signatory to the 
International Plant Protection Convention, approved by Law No.  2.721/05 of 3  October 2005 . View ed at: 
http://www.senave.gov.py/docs/leyes/Ley2721 -05.pdf . COSAVE is composed of Argentina, Brazil, Chile, 
Paraguay and Uruguay and its main aim is to coordinate and build regional capacity  to prevent, reduce and 
avoid the impact and risks of problems affecting the production and marketing of the region 's agricultural and 
forestry resources.  
105 Decree No.  139/93 of 3 September 1993. Viewed at: 
http://www.senave.gov.py/docs/decretos/Dto139 -93.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Number and date  Title  
Decree No. 17.487/97 of 11  June 1997  
As amended and supplemented by Decree 
No. 3.966/15 of 20  August 2015  Establishing Paraguay 's National Codex Alimentarius Committee 
(CONACAP)  
Decree No. 1.635/99 of 12  January 1999  Implementing Article  175 of Law No. 836/80 on the Health Code  
Decree No. 7.797/00 of 7  March 2000  Implementing Law No. 385/94 on seeds and the protection of 
cultivars  
Decree No. 6.626/05 of 18  November 2005  Establishing the National Technical Committee  on Sanitary and 
Phytosanitary Measures  
Decree No. 6.419/05 of 22  September 2005  Implementing Law No. 2.426/04 establishing the National 
Animal Quality and Health Service (SENACSA)  
Decree No. 4.577/10 of 17  June 2010  Implementing Law No. 3.481/08 on pro motion and control of 
organic production  
Decree No. 9.699/12 of 19  September 2012  Establishing the National Commission for Agricultural and Forest 
Biodiversity (CONBIO)  
Decree No. 6.385/16 of 25  November 2016  Decree No. 6.685/16 a mending Articles 2, 4 a nd Annex I and 
supplementing Decree No.  2.504/04 of 5  May 2014 establishing 
the system for the traceability of cattle in Paraguay (SITRAP)  
Source:  WTO Secretariat, SENAVE ( www.senave.gov.py ), SENACSA ( www.senacsa.gov.py ) and INAN 
(www.inan.gov.py ). 
3.180.   The principal authorities for sanitary and phytosanitary matters are SENAVE and 
SENACSA; relations between them and the Executive are throug h the MAG.  
3.181.   SENAVE was set up by Law No.  2.459/04106, as amended and supplemented by Law 
No. 4.866/13107, and started to operate in 2005 as the authority responsible for implementing Law 
No. 123/91, which adopted new standards of phytosanitary protection, and L aw No.  385/94 on 
seeds and the protection of cultivars, among other legal provisions. SENAVE is also responsible for 
administering international conventions and agreements signed by Paraguay on plant quality and 
health, seeds and the protection of new plan t varieties and plant species derived from 
biotechnology.  
3.182.   SENAVE 's responsibilities cover the following areas: (a) plant health: action on plant 
quarantine, phytosanitary monitoring and protection of agriculture; (b) seeds: keeping the 
national registers, dealing with the certification and protection of the rights of breeders of new 
plant varieties; (c) pesticides, fertilizer, soil nutrients and related products: monitor their quality 
and safety, mainly by controlling inputs and registering companies; (d) q uality and safety: 
ensuring the quality and safety of plant products and by -products, either for export, imported or 
for domestic consumption, bearing in mind the guidelines and standards of international and 
national organizations governing the sector. To  carry out this task, it verifies the quality and safety 
of such products and by -products, mostly by certifying quality.  
3.183.   By drafting what are called "technical regulations " SENAVE develops technical measures to 
guarantee the quality of plant products and b y-products. These regulations lay down the 
requirements as to quality, packaging and presentation of fresh plant products, including their 
handling and preparation for appropriate sale on the domestic market and for export. By 
June 2017, 13 "technical regu lations " had been issued, 11 of them during the review period, 
concerning the following products: potatoes (Resolution No.  468/12); onions (Resolution 
No. 469/12); bananas (Resolution No.  414/13); bell peppers (Resolution No.  601/13); oranges 
(Resolution N o. 86/14); carrots (Resolution No.  173/14); garlic (Resolution No.  973/14); melons 
(Resolution No.  1.006/15); pineapples (Resolution No.  507/15); watermelons (Resolution 
No. 167/1 5); and strawberries (Resolution No.  167/15).  
                                                
106 Online information viewed at: http://www.senave.gov.py/docs/leyes/Ley2459 -04.pdf  and 
http://www.senave.gov.py/docs/leyes/Ley4866 -13.pdf . 
107 The supplement consisted of adding the following to SENAVE 's objectives: to establish preventive 
programmes and action; to develop regulations to control the impa ct of the final disposal of agricultural 
residues; and to develop regulations on the use of the final resources of the National Plant and Seed Health 
and Quality Fund, established by the Law which created SENAVE. Text viewed at: 
http://www.senave.gov.py/docs/leyes/Ley4866 -13.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.184.   SENACSA was established by Law No. 2.426/04108 and started to operate in 2005. It is 
responsible for drafting, regulating, coordinating, implementing and monitoring national animal 
quality and health policy and administration. Its functions include the following: implementing 
programmes f or the sanitary control, prevention and eradication of animal diseases; diagnosing 
animal diseases; verifying the quality of vaccines; controlling the safety of products and 
by-products of animal origin; registering and approving companies selling veterina ry products and 
animal feed; controlling residues of veterinary medicines, environmental contaminants and 
pesticides in food of animal origin; and issuing animal health and quality certificates for the import 
and export of animals, genetic material, produc ts and by -products of animal origin, products and 
inputs for veterinary use, inter alia . SENACSA and MAG are the authorities implementing the 
National Plan for Sustainable Development of the Dairy Chain, pursuant to Law No.  5.264/14 on 
promotion of the dai ry chain, boosting of domestic production and promoting the consumption of 
dairy products.  
3.185.   The following are some of the legal provisions adopted during the review period in 
connection with SENACSA and its functions: Resolution No.  2.764/15 authorizing the  
implementation of the VUI in SENACSA at national level; Resolution No.  3.130/15 amending 
Articles of Resolution No.  1.290/09 approving good manufacturing practices for veterinary 
products; Resolution No.  3.845/12 banning the import, distribution, preparat ion, use or possession 
of certain active substances; and Resolution No.  1.050/12 banning the import, distribution, 
preparation, use or possession of clenbuterol, salbutamol, cimaterol or albuterol and other 
beta-agonists throughout Paraguay.  
3.186.   Another instit ution with responsibility for regulating human health is the MSPBS, through 
the National Health Monitoring Directorate, INAN109 and the Directorate of Health Establishments, 
Related Facilities and Healthcare Technology. The National Health Monitoring Directo rate regulates 
everything to do with medicines for human use, chemicals and reagents for the pharmaceutical 
and non -pharmaceutical industry, cosmetics and products for household use, as well syringes and 
needles for human use. INAN 's responsibilities conce rn the regulation of food products and 
beverages.110 The Directorate of Health Establishments, Related Facilities and Healthcare 
Technology has responsibilities with regard to medical, odontological and laboratory appliances, 
instruments, equipment and devic es. 
3.187.   The National Technical Committee on Sanitary and Phytosanitary Measures111 and the 
National Codex Alimentarius Committee (CONACAP)112 are forums for coordinating and 
harmonizing the activities of the institutions involved in SPS -related matters. The MSPBS,  through 
INAN, MIC, MAG, MRE, INTN, SENAVE, SENACSA and representatives of the private sector 
participates in the National Technical Committee on Sanitary and Phytosanitary Measures and in 
CONACAP.  
3.188.   Law No.  123/91 adopts new standards of phytosanitary prot ection and is implemented by 
SENAVE. It determines phytosanitary responsibilities and obligations concerning disease control 
and general conditions for the production, transfer, storage and control of entry and exit. On the 
basis of this Law, SENAVE is req uired to give authorization for the import, temporary admission, 
storage in free zones or transit of plant products. Authorization to import leads to the issuing of an 
AFIDI. For exports, SENAVE issues a phytosanitary certificate for the export of products  and 
by-products of plant origin.  
3.189.   SENAVE is responsible for administering Law No.  385/94 on seeds and the protection of 
cultivars113 and its implementing Regulations114, which regulate the production, movement, 
                                                
108 Online information viewed at: http://www.proyectouniversa.net/proye ctox/biblioteca/LEY/PRY -LEY-
2426-2004.pdf . 
109 Established by MSPBS Resolution S.G. No.  246 of 7  May 1996. Viewed at:  
http://www.inan.gov.py/site/?page_id=64 . 
110 Sanitary registration of food products, beverages and additives for human consumption is 
mandatory.  
111 Established by Decree No.  6.626/05. The text may be viewed at: 
http://www.senave.gov.py/docs/decretos/Dto6626 -05CNT -MSF.pdf. 
112 Established by Decree No.  17.487/97, as amended and supplemented by Decree No.  3.966/15. 
Viewed at: http://www.intn.gov.py/app/webroot/archivos/804DECR ETO3966%20CONACAP%20(2).pdf . 
113 The text may be viewed at: http://www.senave.gov.py/docs/leyes/Ley385 -1994.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  marketing and quality control of seeds. The purpo se of the Law is to guarantee to farmers and 
users in general the identity and quality of the seed they purchase and to protect the rights of 
breeders of new cultivars. The Law established the National Register of Commercial Cultivars, the 
National Registe r of Protected Cultivars, the National Register of Seed Traders, the National 
Register of Seed Producers and the National Register of Seed Laboratories. Those seeking to 
export seeds to Paraguay must have a permanent legal representative listed in the Nati onal 
Register of Seed Traders in Paraguay to act as an importer. Farmers in a personal capacity or in 
associations may also import seeds in the same way as seed traders listed in the Register.  
3.190.   SENAVE is responsible for implementing Law No.  3.742/09 on the control of phytosanitary 
products for agricultural sanitary use115, which establishes the legal regime for the registration and 
control of all phytosanitary products for agricultural use as of their entry into Paraguayan territory. 
The Law also regulates the  synthesis, formulation, fractioning, transport, storage, labelling, 
marketing, advertising, application and elimination of residues and final disposal of empty 
packages and expired pesticides. Four registration categories have been developed and establish ed 
for the purpose of implementing the Law: (a) commercial entities, which may be either natural or 
legal persons engaged in various related activities; (b) professionals, for agronomists, chemists 
and other professionals who provide advice and/or are resp onsible for the technical or testing 
activities of the commercial entities; (c) laboratories, for competent laboratories which analyse, 
test and/or generate information on phytosanitary products and have been accredited in Paraguay 
by the ONA; and (d) phyt osanitary products, for pesticides.  
3.191.   Registration of commercial entities, professionals and laboratories is valid for five years 
and may be renewed. The validity of registration of phytosanitary products depends on their 
classification, whether experimenta l, definitive or for export. For a product classified as 
experimental, registration is for two years, renewable for a further two years, during which it must 
undergo testing of its efficiency in the field and may not be sold. For products classified as 
definitive or for export, registration is indefinite, subject to payment of an annual fee.  
3.192.   During the review period, Decree No.  3.966/15 amending and supplementing Decree 
No. 17.487/97 was approved, creating the CONACAP.  
3.193.    Pursuant to Law No.  836/80 on the Hea lth Code, manufacturers, representatives or 
importers of food products or beverages for sale must first register their products with the MSPBS, 
which determines whether or not they are fit for consumption and the period of validity of their 
registration. I t is also mandatory to register containers for foodstuffs. Resolution No.  380/11 lays 
down the criteria and requirements for obtaining and renewing national registration of containers 
in contact with foodstuffs, which is controlled by INAN.  
3.3.4.1.1   Activities and products regulated because of sanitary risk  
3.194.   Activities involving genetically modified organisms (GMO) are governed by Decree 
No. 9.699/12, which established CONBIO.116 This Decree repealed Decree No.  18.481/97 creating 
the Biosafety Commission (COMBIO), and Decree No.  12.706/08 supplementing and amending 
Decree No.  18.481/97. The MAG is responsible for starting up CONBIO 's operations and for 
granting authorization for controlled testing, pre -sale release, release for sale and other proposed 
uses of GMOs for i ncorporation into agricultural or forestry production, on the basis of the decision 
taken by CONBIO. The MAG authorizes release for sale of GMOs on the basis of a decision by 
CONBIO.  
3.195.   According to the authorities, the new Law meets the need to update the in tegration, 
organization and functions of the Commission by incorporating forestry. The main changes are the 
creation of INFONA and the Paraguayan Agricultural Technology Institute (IPTA) among the 
institutions composing CONBIO, together with the MAG, MSPBS , MIC, SENACSA, SENAVE, SEAM 
and the National University of Asunción (UNA). Another change introduced is the creation of a 
technical secretariat for the forestry sector, for which INFONA is responsible. Prior to this, there 
                                                                                                                                                  
114 Decree No.  7.797/00 of 7  March 2000. Viewed at: 
http://www.senave.gov.py/docs/decretos/Dto7797 -00.pdf . 
115 Text viewed at: http://www.senave.gov.py/docs/leyes/LEY3742 -2009.pdf . 
116 Text viewed at : http://faolex.fao.org/docs/pdf/par130178.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  were only two technical secretar iats, one for plants (SENAVE) and another for livestock 
(SENACSA).  
3.196.   CONBIO has the following tasks: (a) to evaluate GMOs used in the agricultural and forestry 
sectors or which it is sought to introduce into Paraguay, and to recommend, where applicable, 
authorization for their use in Paraguay for the purpose proposed; (b) to advise and decide on 
matters relating to the introduction, field testing, pre -sale release, release for sale and other 
proposed uses of GMOs; (c) to help to ensure that natural and legal persons working with GMOs 
comply with biosafety measures; and (d) to propose biosafety standards, contingency plans in 
case of accidental release, and biosafety measures in cases of failure to comply with the 
standards, as well as to give opinions on matte rs within its competence.  
3.197.   Paraguay bans the production, import, marketing and use of hormonal substances for the 
fattening of cattle whose meat and products are for human consumption, and regulates the use of 
hormones in animal breeding pursuant to Decree No. 3.255/89. SENACSA verifies compliance with 
this ban, determines the special criteria for registration, sale, use and application of authorized 
veterinary products and imposes the sanctions applicable for non -compliance with the Decree.  
3.198.   Promotion and c ontrol of organic products are governed by Law No.  3.481/08 on the 
promotion and control of organic production117 and its implementing Regulations (Decree 
No. 4.577/10).118 The texts designate the authorities for promotion (MAG); accreditation (ONA); 
and regis tration, monitoring and control (SENACSA and SENAVE) for this purpose. They also define 
the procedure for certification and control and the sanctions applicable in cases of failure to comply 
with the obligations in the Law.  
3.3.4.1.2   Notifications to the WTO  
3.199.   The MRE  is the national authority responsible for notifying sanitary and phytosanitary 
measures to the WTO119; it is a member of CONACAP and the National Technical Committee on 
Sanitary and Phytosanitary Measures.120 One of the latter 's activities is to make the ENP for 
notifications to the WTO SPS Committee more efficient.  
3.200.   During the review period, Paraguay notified only five sanitary and phytosanitary measures 
to the WTO (four concerning plant health and one animal health), of which two were notifications 
of emergen cy measures and three regular measures.121 Four of these measures affected all 
Paraguay 's trading partners, whereas one of the emergency measures was directed at Brazil in 
relation to Black Sigatoka disease of bananas.122. The second emergency notification con cerned 
the presence of the citrus disease (Huanglongbing (HLB)) in Paraguay.123 The regular notifications 
concerned: (a) a draft resolution determining the phytosanitary requirements for importing 
Nicotiana tabacum (tobacco) from countries outside MERCOSUR; (b) a draft resolution determining 
the phytosanitary requirements for the entry of kiln -dried sawn timber, sawn timber and logs 
originating in countries within or outside the region; and (c) the animal health requirements for 
importing queen bees and apicu lture products. The 11 measures adopted by SENAVE in relation to 
the packaging of vegetables and fruit were notified to the WTO as technical regulations.124 
3.201.   Although there was only a limited number of notifications to the WTO during the review 
period, Paragu ay has shown progress in their presentation, inasmuch as the previous review 
                                                
117 Text viewed at: 
http://www.senave.gov.py/docs/leye s/Ley3841FomentoControlProduccionOrganica.pdf . 
118 Text viewed at: http://www.senave.gov.py/docs/decretos/Dto4577 -10.pdf . 
119 WTO document G/SPS/NNA/16 of 11  March 2011.  
120 Established by De cree No.  6.626/05. Viewed at: http://www.senave.gov.py/docs/decretos/Dto6626 -
05CNT -MSF.pdf . 
121 Online information from the WTO database, viewed at: http://spsims.wto.org . 
122 WTO document G/SPS/N/PRY/25 of 6  March 2013.  
123 WTO document G/SPS/N/PRY/24 of 18  February 2013.  
124 WTO documents G/TBT/N/PRY/56 of 20  April 2012 (potatoes); G/TBT/N/PRY/64 of 17  July 2012 
(onions); G/TBT/N/PRY/66 of 29  Januar y 2013 (bananas); G/TBT/N/PRY/67 of 12  March 2013 (carrots); 
G/TBT/N/PRY/68 of 12  March 2013 (bell peppers); G/TBT/N/PRY/70 of 16  August 2013 (oranges); 
G/TBT/N/PRY/71 of 22  November 2013 (watermelons); G/TBT/N/PRY/74 of 17  February 2014 (garlic); 
G/TBT/N/ PRY/81 of 19  June 2015 (pineapples); G/TBT/N/PRY/82 of 19  June 2015 (melons);  and 
G/TBT/N/PRY/83 of 19 June 2015 (strawberries).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  showed that the vast majority of measures had been notified after being adopted, whereas during 
this review period, draft measures were notified, thus giving WTO Members an opport unity to 
forward comments on the SPS measures planned.  
3.3.4.1.3   MERCOSUR standards  
3.202.   At the MERCOSUR level, the process of harmonizing SPS measures is taking place through 
Sub-Working Group No.  8 – Agriculture (SGT No.  8) on the basis of the principles, guidelines, 
criteria and parameters for agreements on the equivalence of sanitary and phytosanitary control 
systems determined in document RES/GMC/60/99.125 SGT No.  8 is composed of representatives of 
each country 's regulatory body. During the review period, Paraguay con tinued to adopt 
MERCOSUR 's harmonized SPS measures.  
3.3.5   Competition policy and price controls  
3.3.5.1   Competition policy  
3.203.   One of the most important changes to Paraguay 's economic legal framework during the 
review period was the enactment of Law No.  4.956/13 on the prot ection of competition 
(hereinafter the "LDC") of 21 June 2013, which came into force in December of the same year, and 
its implementing Regulations, Decree No.  1.490/14 of 14  April 2014. The adoption of the LDC 
represents the culmination of a series of leg islative measures that enabled Paraguay to move 
closer to the standards in the relevant international rules.  
3.204.   Paraguay 's Constitution (Article 107) guarantees free competition in the market and 
prohibits the creation of monopolies or artificial increases or  decreases in prices which distort free 
competition. Other regulations (for example, Law No.  561/58, which lays down legal provisions to 
protect the domestic economy126; the Traders' Law and the Law on Consumer Protection127; and 
the Trademark Law) regulate so me aspects concerning trade competition and consumer 
protection. Nevertheless, up until 2013 there was no unified legislation specifically dedicated to 
competition in the market so enactment of the LDC marks an important step forward.  
3.205.   At regional level, P araguay has signed the MERCOSUR Agreement on Protection of 
Competition, which governs competition between companies domiciled in the States Party.128 
Paraguay is currently in process of incorporating this Agreement into its legislation.  
3.206.   The purpose of the LD C is to protect and promote free competition in the market, and to 
prohibit and penalize acts contrary to it. It has broad scope and applies to all acts, practices or 
agreements between Paraguayan or foreign natural or legal persons with their legal domici le in 
Paraguay or abroad, whether under public or private law, that affect competition throughout or in 
part of the national territory, except for limitations determined by law and duly justified for 
reasons of general interest.129 Legal persons include cent ral government bodies and decentralized 
entities which have a government monopoly, provided that exercise of a special right or 
prerogative determined by law is not considered to be an anti -competitive practice or abuse of a 
dominant position.130 Those carry ing out economic activities outside the country are also subject to 
the LDC if their action has an effect in the domestic market. The LDC also covers natural persons 
representing legal persons subject to the Law who take part in carrying out the acts punis hed 
under its provisions. Legal persons controlling those who violate the law are jointly liable.  
3.207.   The provisions in the LDC regulate practices and agreements which restrict competition, 
abuse of a dominant position and concentrations.131 Article 8 of the Law  prohibits any agreement, 
                                                
125 Incorporated into Paraguay 's domestic legislation by Decree No.  10.846/00.  
126 Law No.  561/58 empowers the MIC to adopt measure s to prevent agreements aimed at cornering the 
market in consumer goods or artificial increases or decreases in product prices to the detriment of the national 
economy and the cost of living.  
127 These Laws are described in the WTO Secretariat 's previous re port (2011), third Trade Policy Review 
- Paraguay , Geneva.  
128 MERCOSUR Agreement on Protection of Competition, adopted by CMC Decision No.  43/10.  
129 Article 3 of Law No.  4.956/13.  
130 Ibid., Article 2, paragraph 4.  
131 Unfair trade practices are governed by the Trademark Law and the Traders ' Law.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  decision or concerted or deliberately parallel practice, irrespective of whether it is written or 
verbal, formal or informal, if its purpose has or may have the effect of preventing, restricting or 
distorting competition in all or  part of the domestic market. An illustrative list of prohibited conduct 
has been drawn up for this purpose and includes price agreements between competitors, dividing 
up markets, applying unequal terms for equivalent services to third contractors, tied sa les of 
products or services, collusive tendering, restrictions on production or sale and concerted refusal 
to purchase.  
3.208.   The Law incorporates the "rule of reason ", i.e. when examining the aforementioned types 
of conduct, the authority responsible for applyi ng the law must take into account whether such 
practices generate gains in economic efficiency for the companies concerned, whether they could 
be obtained in some other way and whether the benefit is passed on to consumers.  
3.209.   The fact that one or more compan ies are in a dominant position in a particular market is 
not considered to be unlawful as such; what the LDC prohibits and punishes is the abuse of a 
dominant position through any of the activities prohibited by the Law in order to obtain undue 
advantages and cause prejudice to others. Article  9 lists some of the types of conduct deemed to 
be abusive. Abuse must be proven by means of administrative procedures. Special provisions 
apply to cases of abuse of a dominant position through predatory pricing.  
3.210.   The L DC introduces a control regime for mergers and buy -outs of companies so as to 
assess whether such operations do or do not comply with the Law. Concentrations must be notified 
and registered with the implementing authority within ten days of their completio n if: (i)  the result 
of the operation leads to participation of 45% or more in the market concerned; or (ii) gross 
annual invoicing in Paraguay by all the companies involved in the operation exceeds 100,000 
monthly minimum wage units (around US$30  million) . Within a maximum period of 90  days of 
receiving the notification, the implementing authority must decide by means of a reasoned 
resolution whether or not it authorizes the operation, imposes compliance with certain conditions, 
or refuses authorization. I f the operation is not compatible with the market but it can be proved 
that it will produce gains in economic efficiency which offset the restriction of competition, the 
operation will be authorized. The burden of proving such gains lies with the persons m aking the 
notification. If the implementing authority does not take any decision within the allotted time -limit, 
the concentration shall be understood to have been authorized tacitly.  
3.211.   Summary proceedings for imposing sanctions for failure to comply with th e LDC may be 
initiated ex officio  or following a complaint by interested parti es. The penalties consist of: 
(i) a warning and notification of the acts contrary to the Law; (ii) declaration of nullity; and 
(iii) imposition of fines. The maximum amount of fi nes is the equivalent of 150% of the profit 
obtained from the illegal practice or up to 20% of gross invoicing for the sale of products subject 
to the illegal practice in the relevant market within the previous 12 months, excluding tax. Fines 
may not be le ss than the advantage gained, where this can be quantified. The amount of fines is 
determined having regard to the significance of the violation, taking into account a series of 
factors indicated in the Law, including the scope of the restriction on compet ition, the size of the 
market affected, the impact and duration of the restriction and the degree of intention, 
inter alia.132 One relevant aspect is that, in addition to the sanctions imposed on legal persons who 
engage in prohibited conduct, directors, man agers or administrators who have actively participated 
in the unlawful conduct may also be fined.  
3.212.   The National Competition Commission (CONACOM) is the implementing authority created 
by the LDC. It is a decentralized agency, with its own legal status and as sets and is fully 
independent. Its relations with the Executive are through the MIC. It is composed of a Governing 
Board, comprising three members appointed by the Executive, who remain in office for a period of 
six years; and an Investigation Directorate,  which is the executive arm. The Governing Board was 
set up in 2015 and the Investigation Directorate in September 2016. Since it commenced 
operations in May 2017, CONACOM has issued two resolutions on concentration in the 
non-alcoholic beverages and agro -industrial products sectors, and has responded to questions on 
restrictions on competition in draft legislation.  
3.213.   CONACOM has broad powers to ensure that the Law is applied and these include: 
prohibiting and punishing conduct that restricts competition; com mencing investigations into 
                                                
132 Article 63 of Law No.  4.956/2013.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  punishable conduct; issuing preventive measures and economic sanctions for failure to comply 
with the obligations in the Law and in international treaties to which Paraguay is party; controlling 
concentrations in accordance with  the Law; proposing guidelines for competition protection 
policies; issuing opinions on preliminary draft rules affecting competition; and coordinating its 
tasks with other sectoral regulators.  
3.214.   CONACOM may request technical collaboration from other governm ent institutions or 
regulatory bodies, which by law must provide the information requested. The officials responsible 
and the head of the government institution or regulatory body in question may be liable to 
sanctions for failure to comply. Other administ rative or judicial authorities may request a 
non-binding ruling from CONACOM on aspects that may have a significant impact on competition 
in a particular market. In any event, CONACOM is the sole authority competent to evaluate 
restrictions on free competi tion and to investigate and decide on proceedings regulated by the 
LDC. 
3.3.5.2   Price controls  
3.215.   Paraguay does not apply price controls on goods or services, except for a maximum selling 
price to the public for a certain type of diesel fuel (gas oil Type III). There  is also a social 
(preferential) rate for electricity for low -income households.  
3.3.6    State trading, State -owned enterprises and privatization  
3.216.   In 1998, Paraguay notified the WTO that the BCP and the Tourism Directorate were 
State -trading enterprises within the  meaning of Article XVII of the GATT 1994.133 That same year, 
it notified that there were no State -trading enterprises promoting or marketing agricultural 
products.134 Paraguay has not made any more notifications on State -trading enterprises since 
then. 
3.217.   Curren tly, nine State -owned enterprises are operating in Paraguay, defined as such by 
law.135 Six are services companies and three production companies. The former are: the National 
Electricity Authority (ANDE), National Shipping and Ports Authority (ANNP), Compañ ía Paraguaya 
de Comunicaciones S.A. (COPACO), National Civil Aviation Directorate (DINAC), Empresa de 
Servicios Sanitarios del Paraguay (ESSAP S.A.) and Ferrocarriles del Paraguay S.A. (Paraguayan 
Railways (FEPASA)). The production companies are: Cañas Par aguayas S.A. (CAPASA), Industria 
Nacional del Cemento (INC) and Petróleos Paraguayos (PETROPAR).  
3.218.   State -owned enterprises play an important role in the nation 's economy: in 2016, their 
aggregate annual budget represented 23% of the nation 's total budget; t otal income was 
US$1,458  million (5.5% of GDP); and employees numbered 16,916 (11% of public sector jobs). 
The enterprises which make the largest contribution to job creation are ANDE (31% of total jobs in 
State -owned enterprises) and COPACO (25%), followe d by ESSAP (11.7%) and DINAC (11.4%).136  
3.219.   ANDE has the exclusive right to transmit and distribute electric power and public lighting. 
COPACO S.A. has a de facto monopoly on fixed telephony and PETROPAR has the right to import 
up to 50% of gas oil Type III, n aphtha of up to 85 octanes and virgin naphtha. On the other hand, 
since 2015, the INC has ceased to have a monopoly on the import and distribution of cement. 
COPACO S.A., ESSAP, ANDE, DINAC and PETROPAR are subject to some form of price control. The 
rates for COPACO and ESSAP services have to be approved by their respective regulatory 
authorities, while those of ANDE, DINAC and PETROPAR, which act as de facto  regulators, are 
approved by the Executive. All State -owned enterprises must comply with the Law on government 
procurement (section 3.3.7).  
3.220.   During the review period, one important step was the enactment of Law No.  5.058 of 
20 September 2013, and its implementing Regulations, Decree No.  1.143 of 21 January 2014. 
Likewise, Decree No.  6.381/16 of 23  Novembe r 2016 approved the Arandú Code: commitments 
                                                
133 WTO documents G/STR/N/4/PRY and G/STR/N/4/PRY/Suppl.1 of 5 October 1998 and 
26 October  1998, respectively.  
134 WTO document G/STR/N/4/PRY/Suppl.2 of 26 November 1998.  
135 Law No.  5.058/ 13 of 20  September 2013.  
136 Information provided by the Directorate -General of State -owned Enterprises.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  and good practice in corporate governance for Paraguay 's State -owned enterprises, which is in 
process of being implemented.  
3.221.   Law No.  5.058 established the National Council for State -owned Enterprises (CNEP)137, 
which is responsible for determining and coordinating national policy for the administration of 
State -owned enterprises, including strategies for their modernization and supervision, in order to 
promote efficiency, probity and transparency in their management .138 It is composed of the 
Minister for Public Works and Communications, the Minister for Industry and Trade, the 
Attorney -General of the Republic and the Minister for Finance, who chairs the Council. The CNEP 
has a technical arm, the Directorate -General of State -owned Enterprises (DGEP), which operates 
within the organic structure of the Ministry of Finance. The Director -General of the DGEP, 
appointed by the President of the Republic, is in charge of overseeing, implementing and 
coordinating the CNEP 's decis ions through the Executive Secretariat.  
3.222.   Through the CNEP and the DGEP, the State fulfils its role as owner of the State -owned 
enterprises and reinforces its capacity to monitor and oversee their performance. The enterpris es 
are evaluated by means of a " performance -based management contract"  between the CNEP and 
each enterprise, which includes quantitative and qualitative goals which the enterprise 's board and 
senior management must undertake to achieve. Contracts have a term of three years, during 
which the  enterprises must submit monthly, quarterly and annual reports to the CNEP on 
achievement of the goals agreed, including financial, economic and technical information. The 
enterprises also undertake to have external audits of their management.  
3.223.   Seven State -owned enterprises have signed a performance -based management contract, 
namely, ANDE, INC, ANNP, DINAC, PETROPAR, COPACO S.A. and ESSAP S.A. Although CAPASA 
and FEPASA do not have performance -based management contracts, they have undertaken 
commitments on s ubmitting information to the CNEP twice a year. According to the authorities, 
experience with the monitoring scheme has been positive and has achieved results such as the 
publication and dissemination of the annual audited financial statements on the CNEP 's and the 
enterprises' websites; the preparation of new rules and procedures for employing external 
auditors; measures to regularize delayed payment of basic services by the Central Administration; 
participation in the review of the enterprises' budgets an d establishment of a more flexible 
mechanism for the procurement of strategic goods by State -owned enterprises pursuant to Decree 
No. 5.520/16 of 27  June 2016. There remain challenges, however, such as increasing the 
efficiency and accountability of State -owned enterprises, the need to strengthen their governance 
framework and the reaffirmation of the CNEP as owner of these enterprises.  
3.224.   The CNEP, therefore, approved a strategic plan (2014 -2018), whose main objective is to 
lay down the conditions for ensurin g efficient and transparent management of State -owned 
enterprises by defining guidelines for government policy on their modernization. Currently, the 
CNEP is applying these guidelines and has also concluded the review of a preliminary draft of the 
Law on S tate-owned Enterprises, which will shortly be sent to the National Congress for 
consideration.  
3.3.7   Government procurement  
3.225.   In 2016, Paraguays government procurement amounted to US$2,466  million, or around 
9% of GDP. Of the total amount of government procurement  over the period 2010 -2016, 54% was 
for goods, 28% for public works, and 18% for services (including consultancy services). On 
average, 17,824 contracts are awarded each year.  
3.226.   State -owned enterprises are the principal contracting entities, accounting for 8 8.7% of the 
total value of government procurement between 2010 and 2016, followed by the Executive (8%), 
public social security agencies (1.1%), local governments (1%), municipal authorities (0.6%), 
autonomous decentralized entities (0.5%), the Judiciary ( 0.4%) and joint ventures (0.2%). Among 
                                                
137 The CNEP replaced the State -owned Enterprises Council created by Decree No.  163/08.  
138 Articles 1 and 2 of Law No.  5.058/2013 and Article 2 of Decree No . 1.143/14.  
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  these State -owned enterprises, the major contracting agencies in terms of value are PETROPAR, 
ANDE and INC.139 
3.227.   Paraguay has not signed the WTO Plurilateral Agreement on Government Procurement and 
is not an observer at t he competent Committee. At regional level, Paraguay is party to the 
MERCOSUR Protocol on Government Procurement140, under which it has undertaken transparency 
commitments.141 In recent years, Paraguay has continued to work with international organizations 
to modernize and improve the efficiency of its government procurement regime. In June 2014, it 
signed an agreement with the IDB under which the Bank uses Paraguay' s national procurement 
system for Bank -financed projects, notably the electronic reverse auction and offer bidding 
methods.  
3.228.   The government procurement regime is mainly governed by Law No.  2.051/03 on 
government procurement (LCP), as amended by Law No.  3.439/07 and its implementing 
Regulations, Decree No.  21.909/03, which was amended by Decrees Nos . 5.174/05 and 
3.719/15.142 There is also special legislation on public works, including Law No.  1.533/99143, Law 
No. 5.074/13, which incorporates the State 's sovereign guarantee for procurement financed by the 
supplier, and Law No.  4.678/13, which lays down crite ria for incorporating formulas for 
readjustment of prices in public works contracts.  
3.229.   During the review period, several regulations on various aspects of government 
procurement were adopted, generally in order to make the corresponding procedures more flexi ble 
and transparent and, in some cases, to establish mechanisms to support domestic production and 
employment through government procurement. Table 3.22 lists the laws and decrees on 
government procurement adopted since 2011.  
Table 3.22 Laws and decrees on government procurement adopted since 2011  
Number and year  Title  
Laws   
Law No. 4.558/11  Establishing mechanisms to support domestic production and employment 
through government procurement  
Law No. 4.678/ 13  Regulating the application of formulas for readjustment of prices in public works 
contracts  
Law No. 5.074/13  Amending and supplementing Law No. 1.302/98 laying down procedures and 
special and complementary criteria for Law No. 1.045/83 establishing the public 
works regime  
Decrees   
Decree No. 7.434/11  Establishing certain regulations for proceedings in the Directorate of Legal 
Affairs in the National Government Procurement Directorate  
Decree No. 9.649/12  Implementing Law No. 4.558/11 establishin g mechanisms to support domestic 
production and employment through government procurement  
Decree No. 11.015/13  Creating the new system for registering payment to government suppliers and 
repealing Articles 100 and 132 of Decree No. 21.909/2003 and Decree  
No. 12.318/2008  
Decree No. 1.107/14  Establishing the procedure for electronic reverse auctions and repealing Decrees 
Nos. 12.453/08 and 5.517/10  
Decree No. 1.315/14  Implementing the framework agreement procedure to be applied by the 
National Government Procurement Directorate for organizations, entities and 
municipal authorities subject to the government procurement regime, 
established by Law No. 2.051/03 on government procurement  
Decree No. 3.000/15  Establishing the complementary method called streaml ined procedure for 
procuring agricultural products from family farms and determining criteria for 
the contracting and selection procedures applicable to such procurement  
                                                
139 Information provided by the National Government Procurement Directorate.  
140 Decision CMC No.  27/04, whose Annex was replaced by Decision CMC No.  23/06.  
141 Paraguay does not grant access to its government procurement market to the Republic of A rgentina 
or the Federative Republic of Brazil until the state and provincial governments bordering Paraguay open up 
their markets. Annex A to the Protocol. Reservations to Article 2.1.  
142 The following are some of the most important amendments introduced b y Decree No.  3.719/15: 
publication of reference prices (previously these were confidential); rules on prequalification, allowing the 
contracting entity to decide whether or not to use this procedure; and incorporation of the double -envelope 
method (technic al bid and economic bid) in ordinary procurement procedures.  
143 Law No.  1.533/99 on public works was repealed by the LCP, except for its provisions on liability, 
evaluation, inspection and certification of works (Articles 41 to 46).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Number and year  Title  
Decree No. 3.719/15  Amending Articles 13, 14, 17, 21, 26, 42, 52, 54, 60, 61 and 64 o f Decree 
No. 21.909/03 implementing Law No.  2.051/03 on government procurement 
and Articles 56 and 92, as amended by Decree No. 5.174/05, amending 
Articles  18, 19, 24, 25, 26, 35, 44, 45, 47, 48, 49, 51, 53, 56, 62, 75, 78, 81, 
83, 84, 92, 112, 118 and 125  of Decree No. 21.909/2003  
Decree No. 4.929/16  Establishing the obligation to purchase domestic products under the system of 
awarding contracts by item  
Source:  WTO Secretariat, with information provided by the National Government Procurement Directorate .  
3.230.   Created by Law No.  3.439/07 as an autonomous and decentralized entity, the National 
Government Procurement Directorate (DNCP) regulates and supervises government procurement. 
Its main responsibilities are to develop general policies and issue decisions on government 
procurement; publicize, control and verify contracting procedures at each stage of their execution; 
conduct investigations ex officio  or following a complaint regarding such procedures; and deal with 
complaints and impose sanctions for violat ing the Law.144 It is also in charge of administering the 
Government Procurement Information System (SICP).  
3.231.   The SICP is an interactive electronic platform introduced in 2003 and updated in 2010 on 
which all procurement by the Government is published, from th e planning stage up to the award of 
the contract. The system also includes the register of suppliers, information on contracting 
entities, the legal framework, statistical data and a mechanism for dealing with complaints that 
gives the plaintiff protection ; it receives complaints of corruption regarding any stage of the 
contracting procedure.145 Access to the SICP is public and free of charge. Currently, procedures for 
the reverse auction method at the price comparison stage and the system for complaints have  
been computerized; work is continuing on automating the other stages in the procedure. All 
contracting entities (351) subject to the LCP must publish their invitations to tender and 
government procurement procedures through the SICP.  
3.232.   The State Suppliers S cheme (SIPE), introduced in 2007, consists of prior registration 
through which suppliers download a certificate (proof) electronically to replace all the documents 
which they have uploaded onto the system and which are needed in order to take part in 
gover nment procurement. In other words, when submitting a bid, the certificate replaces the 
physical submission of the documents, provided that these have been uploaded. The certificate 
may also be used to challenge decisions. Registration is part of the SICP, it is free of charge and is 
not mandatory in order to take part in procurement, although suppliers must be registered if they 
are awarded a contract in order to receive payment. At May 2017, 21,514 suppliers were 
registered in the SIPE, of which only 0.4% were micro, small or medium -sized enterprises 
(MSMEs).146 
3.233.   During the review period, efforts continued to make the government procurement system 
more efficient and transparent, with the adoption of measures such as: improvements to the 
electronic reverse auct ion system; introduction of the framework agreements scheme; 
implementation of a new registration scheme for paying suppliers147; implementation of the 
business intelligence scheme to make it easier to obtain global data and to monitor government 
procurement  procedures carried out through the SICP; and introduction of a pilot project for the 
contract management scheme with some contracting entities (currently, four).148 
3.234.   On the other hand, with a view to promoting production and employment, Paraguay still 
gives preferences for goods and services of national origin in government procurement. Law 
No. 4.558/11 of 14  December 2011, implemented by Decree No.  9.649/12 of 7  September 2012, 
determines a 20% preference margin for products and services of national origin i n national 
government procurement procedures. The following are considered products and services of 
national origin for this purpose: (a) mineral, animal and plant products extracted, harvested, 
collected or born in Paraguay and goods produced from such ra w materials; (b) products 
processed in Paraguay from imported raw materials if their transformation results in a change in 
                                                
144 Article 3 of Law No.  3.439/07.  
145 The website is available at: https://www.contrataciones.gov.py . 
146 Information provided by the DNCP.  
147 The new scheme enables all payments made to suppliers by the Government under agreements 
signed within the LCP framework to be consulted. Decree No.  11.015/13 of 30  April 2013.  
148 Information provided by the DNCP.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  tariff heading or, alternatively, if the labour, raw materials and inputs from Paraguay make up 
more than 40% of the selling price of  the good from the Paraguayan factory; and (c) in road 
works, construction, maintenance, transport, insurance, consultancy and other services in general, 
when over 70% of the service supplier 's personnel is Paraguayan. Bidders must submit a 
certificate of origin issued by the MIC in order to be eligible for this preference.149 
3.235.   With regard to the execution of public works and services commissioned under Law 
No. 1.535/99 on government financial administration and the LCP, Law No.  5.074/13 of 
23 October 2013 pro vides that Paraguay 's actual share in “turnkey” transactions must not be less 
than 25%.150 Pursuant to Decree No.  5.151/16 implementing Law No.  5.074/13, Paraguay 's actual 
share of 25% in each undertaking refers to participation by the Paraguayan company in executing 
the contract, meaning that it includes work provided as a subcontractor. For the purposes of 
proving such a share, at the time bids are submitted, bidders must attach documents showing 
their commitment to subcontract Paraguayan enterprises. A com pany is considered to be 
Paraguayan when its head office is in Paraguay. The procedures carried out under Law No.  5.074 
are disseminated through the SICP, but the MOPC issues the tender.  
3.236.   Decree No.  4.929/16 of 16  February 2016 lays down the obligation to p urchase domestic 
products under the "by item " contracting method for all invitations to tender issued by contracting 
agencies governed by the LCP. A list of 20 domestic products was drawn up for this purpose, 
mostly agricultural products and by -products, w hich must be purchased in accordance with these 
terms. The Decree also empowers the MIC to update the list of products, taking into account a 
series of requirements which mainly concern the local content of the products, the fact that they 
are of sectoral interest and promote jobs and production by small and medium -sized 
enterprises.151 
3.237.   There are also special provisions to boost participation in government procurement by 
MSMEs. Decree No.  1.434/09 of 6  February 2009 provides that in government procurement 
procedures carried out according to the electronic reverse auction method, if the bids are 
technically equivalent, MSMEs have the opportunity of making a second bid after the final bids 
have been submitted, subject to the following conditions: the second -best bid is up to 5% higher 
than the first -best bid; and the second -best bid is by a smaller enterprise than the first bid, which 
must not be from an MSME. The aforementioned margin is 10% in the case of direct procurement. 
MSMEs ' share of the annual total of contracts awarded has risen gradually but is still very low 
(0.8% in 2016, compared to 0.1% in 2011).  
3.238.   In order to promote the automotive industry, Law No.  4.838/12, determining the national 
automotive policy, provides that in all bidding procedures and th e procurement of goods by 
government organizations and authorities, a 20% preference margin of the prices offered must be 
given for the incorporation of goods produced and/or assembled under this Law, in accordance 
with the methodology for calculating nati onal value added, established by the competent 
authority152 (section 3.3.1. 2.6). 
3.239.   The LCP 's scope covers procurement of goods, works and services (including consultancy 
services) by all agencies belonging to the three arms of the State, autonomous and decentr alized 
entities, local governments and municipal authorities and State -owned enterprises, except for the 
binational enterprises of Itaipú and Yacyretá. Procurement on the basis of international treaties to 
which Paraguay is party and that are financed by f unds from multilateral credit agencies are 
excluded from the scope of the LCP.153 
3.240.   The LCP establishes four procedures for government procurement depending on the 
estimated cost: (i) public invitation to tender, used for procurement exceeding the equivalent o f 
10,000 minimum "daily"  wage units154; (ii) offer bidding, used for procurement involving amounts 
ranging from 2,000 to 10,000 minimum daily wage units; (iii) direct contracting when the 
estimated cost is less than 2,000 minimum daily wage units; and (iv) "fixed price " procurement for 
                                                
149 Article  3 of Law No.  4.558/11 and Article  4 of Decree No.  9.649/12.  
150 Article 2 of Law No.  5.074/13.  
151 Article  2 of Decree No.  4.929 /16. 
152 Article 9 of Law No.  4.838/12.  
153 Articles 1 and 2 of Law No.  2.051/03.  
154 In early 2017, the minimum daily wage unit was ₲75,558 (around US$14/day).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  contracting amounting to less than 20 minimum daily wage units.155 The first two methods entail 
publication of the notification of procurement in a local newspaper and on the SICP; "direct 
contracting"  is by means of a written in vitation and is also published on the SICP; "fixed price " 
contracting (petty cash) is used to purchase small amounts of basic goods and services and is 
agreed directly with the supplier in order to speed up the administrative process.156 It is not 
allowed to  divide up the amount of contracts or the execution of a project in order to avoid the 
contracting methods prescribed in the Law.  
3.241.   Public invitations to tender are either national or international. Only natural and legal 
persons domiciled in Paraguay may pa rticipate in the former, while the latter is open to 
participation by natural and legal persons not domiciled in Paraguay. An international public 
invitation to tender is only allowed exceptionally when: (i) this is required by the terms of an 
internationa l treaty; (ii) it is stipulated in loan agreements with international organizations; 
(iii) there are no bids from Paraguayan suppliers or contractors for the goods, services or works in 
the quantity or quality required or a bid is not acceptable in terms o f price; or (iv) no bid 
whatsoever has been submitted in a national public invitation to tender. A natural or legal person 
not domiciled in Paraguay may be barred from participating in international invitations if that 
person 's country of domicile does not  grant reciprocal treatment to Paraguayan suppliers, goods or 
services.  
3.242.   In international public invitations to tender, where terms are equivalent, contracting 
entities must employ Paraguayan human resources and purchase goods produced in Paraguay with 
more than 50% local content. When making an economic comparison of bids, therefore, they have 
to apply a preference margin of up to 10% to the price of the goods with local content compared 
to the price of imported goods.157 
3.243.   The LCP (Article 33) defines the exem ptions where it is possible to proceed with 
government procurement without going through a public invitation to tender or offer bidding 
because of special circumstances. These exceptions concern, inter alia : where the contract may 
only be concluded with a particular person because it concerns a work of art, ownership of patents, 
copyright or other exclusive rights; in cases of natural disaster; for reasons of national security; 
where two bidding procedures have been declared fruitless; in situations of force majeure , 
emergency or for technical reasons justifying direct contracting.  
3.244.   Table 3.23 shows that national and international public invitations to tender jointly 
accounted for an average of 72% of the value of contracts awarded each year from 2010 to 2016 . 
National invitations alone, however, represented the highest percentage, with an average of 48% 
of the value of contracts awarded each year.  
Table 3.23 Amounts of contracts awarded by contracting procedure f ollowed, 2010 -2016  
(%, unless otherwise indicated)  
Method  2010  2011  2012  2013  2014  2015  2016  
National public 
invitation to tender  46 43 59 36 48 55 46 
International public 
invitation to tender  18 26 18 44 27 16 19 
Offer bidding  6 5 4 5 5 5 5 
Direct c ontracting  3 2 3 3 2 3 4 
Exceptional 
contracting  8 11 8 6 6 5 6 
Othera 19 13 8 6 11 16 20 
Total 100 100 100 100 100 100 100 
Total (₲ million)  9,385,408  12,778,295  15,222,224  11,072,557  15,808,423  13,299,173  13,852,432  
Total (US$ million)b 1,670  2,274 2,710  1,971  2,814  2,367  2,466  
a Including rental of real estate, contracting of training and contracting as a result of national or 
international agreements.  
b Exchange rate at 21  February 2017: US$1 =  ₲5,617.  
Source:  WTO Secretariat, with data provide d by the National Government Procurement Directorate.  
                                                
155 Article  16 of Law No.  2.051/03.  
156 Ibid., Article 35, and Article 75 of Decree No.  21.909/03.  
157 Article 18 of Law No.  2.051/03 and Article 62 of Decree No. 21.909/03, as amended by Decree 
No. 5.174/05 and by Articles 3 and 4 of Decree No. 6.225/11.  
 WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  3.245.   In terms of the number of contracts awarded (Table 3.24), national or international public 
invitations to tender represented an average of 18.5% annually during the review period and the 
share of inter national public invitations to tender averaged only 0.5%. On the other hand, offer 
bidding and direct contracting (following an invitation to three suppliers) accounted for 71% of 
contracts awarded during this period but less than 8% of the value, thus ref lecting the low level of 
procurement using these methods, as well as their frequent use by contracting entities. As regards 
exceptional contracting (with no competition), although its share of the number of contracts and 
their value has tended to decrease in recent years, it remains more (6% in 2016) than 
participation in offer bidding (5%) or direct contracting (4%) in terms of the value of contracts 
awarded.  
Table 3.24 Contracts awarded by contracting procedu re followed, 2010 -2016  
(%, unless otherwise indicated)  
Method  2010  2011  2012  2013  2014  2015  2016  
National public 
invitation to tender  16 18 18 17.7 19 19.8 17 
International public 
invitation to tender  1 0.4 0.5 0.3 1 0.3 0.4 
Offer bidding  18 17 18 20 20 21 20 
Direct contracting  51 52 54 54 49 50 54 
Exceptional 
contracting  6 5.6 4.6 4 8 4 3.6 
Othera 8 7 5 4 3 4.9 5 
Total 100 100 100 100 100 100 100 
Total number of 
contracts  20,866  21,322  20,873  14,541  17,492  14,551  15,120  
a Including rental of real estate, contracting of training and contracting as a result of national or 
international agreements.  
Source:  WTO Secretariat, with data provided by the National Government Procurement Directorate.  
3.246.   The Law also provides for the introduction of additi onal methods of contracting which 
enable the Government to obtain better terms, for example, prequalification, bidding in two or 
more stages, electronic reverse auction or framework agreements. In 2008, for example, the 
electronic reverse auction system (S BE) was introduced, allowing suppliers registered in the SIPE 
to submit bids for contracts for goods, services (including consultancy services) and public works 
openly on the Internet and bid at auctions in real time. The winning bid is that which offers t he 
lowest price. There is no ceiling on the amount of the contract or the method of contracting. In 
2016, the share of the SBE in terms of the value of total contracts awarded was 38% and 8% in 
terms of the number of contracts awarded (15% and 8%, respecti vely, in 2011). The authorities 
consider that the SBE has helped to facilitate contracting procedures and improve transparency 
and has generated savings for the Government. Decree No.  1.107/14 of 13 January 2014 
establishes a single regulatory structure fo r contracting through the SBE.158 
3.247.   In 2014, the contracting procedure called "framework agreement " was introduced by 
Decree No.  1.315/14. This consists of drawing up an online catalogue of mass consumption goods, 
which are offered by suppliers with the approv al of the DNCP. Purchasing entities thus have a 
virtual shop on which they can purchase the goods they need at a time that suits them without 
having to issue a public invitation to tender. The number of contracts awarded using the 
framework agreement proce dure rose from 89 in 2014 to 1,021 in 2016.  
3.248.   The LCP requires that all public invitations to tender be published on the SICP and in at 
least one national newspaper for a minimum of three days. The specifications of terms and 
conditions are available to thos e interested on the SICP without charge. The type of information to 
be included in the call for bids and the conditions are specified in the Law. The minimum periods 
for submitting and opening bids is 20 days for national invitations to tender and 40 for 
international invitations, calculated as of the date of the last publication of the invitation. The offer 
bidding procedure is similar to a public invitation to tender, except that it is not mandatory to 
publish the invitation in the press, rather it is iss ued through written invitations to potential 
suppliers, without any limit on participation; the time -limits set may also be halved provided that 
                                                
158 The new Decree repeals Decrees Nos . 12.453/08 and  5.517/10.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  the purpose is not to limit the number of potential bidders or to confer an advantage on a 
particular bidder.  
3.249.   According to the LCP (Article  26) and Decree No.  21.909 (section IV), the criteria for 
awarding a contract are: the bid must meet the legal and technical criteria in the specifications of 
terms and conditions; the bidder must possess the qualifications and  capacity needed to fulfil the 
contract; and the price is deemed to be the lowest. As has already been indicated, however, in 
international public invitations to tender, when comparing the economic aspect of bids, contracting 
entities must apply a preferen ce margin of up to 10% to the price of goods with local content 
compared to the price of imported products.  
3.250.   The LCP institutes an appeals (complaints) procedure under which any bidder who 
considers that his rights have been prejudiced at any stage of the c ontracting procedure may 
appeal to the DNCP against the administrative action taken by the contracting entity. The DNCP is 
empowered to review such action, annul acts, contracts or agreements on the part of the 
contracting entity provided that, in the cour se of administrative summary proceedings, it is shown 
that they violate the LCP. The time -limits for issuing decisions are specified in the rules. Appeals 
against decisions by the DNCP may be made to the Court of Auditors. Complaints must be 
submitted in w riting or using the electronic complaint form on the SICP, authorized by Resolution 
No. 2.076/15 of 21  July 2015. This form allows any appeal procedure to be dealt with 
electronically, without any hard copy. The number of contracting procedures contested g radually 
rose during the review period: 402 in 2011; 530 in 2012; 537 in 2013; 756 in 2014; 797 in 2015; 
920 in 2016; and 341 by the end of May 2017.159 According to the authorities, this increase is 
linked to greater transparency in contracting inasmuch as the public has access to information on 
invitations to bid and can detect any anomalies such as below average prices, biased technical 
specifications and corruption.  
3.251.   In a recent evaluation of Paraguay 's government procurement system160 by the DNCP, 
with supp ort from the IDB, it was found that from 2006 to 2013, the system had been reinforced 
exponentially, particularly as regards transparency and integrity, market operation and practices, 
even though these are the areas requiring further strengthening. It was  found that the legal 
framework and the institutional structure were the strongest areas in the system, while the areas 
that showed shortcomings included: definition of the terms and specifications in prequalification 
procedures; restriction on participati on by international companies in procedures as a result of 
making national public bidding the rule; the time taken to respond in budgetary and financial 
procedures as regards payment of suppliers; and the efficacy of review by the jurisdictional body 
becau se of the lack of expertise in government procurement on the part of judges responsible for 
administrative litigation proceedings.  
3.3.8   Intellectual property rights  
3.3.8.1   Legal and institutional framework  
3.252.   Article 110 of Paraguay 's Constitution of 1992 guarantees inte llectual property rights 
(IPRs) and copyright. Article 184 of its Penal Code contains provisions on infringement of copyright 
and related rights and industrial property rights. IPRs are protected more specifically by several 
other laws, including Law No. 1 .630/00 of 29  November 2000 on patents and amendments 
thereto; Law No. 1.328/98 of 27 August 1998 on copyright and related rights and amendments 
thereto; and Law No. 1.294/98 of 6  August 1998 on trademarks a nd amendments thereto 
(Table  3.25). A Law on geog raphical indications and designations of origin was adopted during the 
review period.  
3.253.   In addition to the Agreement on Trade -Related Aspects of Intellectual Property Rights 
(TRIPS), Paraguay 's regulatory framework for intellectual property includes the int ernational 
agreements and conventions concluded and ratified within the framework of the World Intellectual 
Property Organization (WIPO). Paraguay is also party to the Buenos Aires Protocol on the 
                                                
159 Information provided by the DNCP.  
160 DNCP ( 2013), Evaluación 2013 del Sistema Nacional de Contrataciones Públicas del Paraguay. Con 
base en la Metodología de la OCDE/DAC . Viewed at: 
https://www.contrataciones.gov.py/sicp/do wnload/getFile?cid . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Harmonization of Intellectual Property Rules within MERCOSU R with regard to trademarks, 
indications of origin and designations of origin.  
3.254.   During the review period, Paraguay ratified the Marrakesh Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled , adopted 
on 27  June 2013, which came into force on 30  September 2016.  
3.255.   Paraguay 's intellectual property legislation underwent several changes during the review 
period (Table 3.25). In 2011, for example, amendments were made to the decrees implementing 
the laws on patents, copyright and related rights, and trademarks.  
3.256.   There were also institutional changes during the review period. Pursuant to Law 
No. 4.798/12 of 31  December 2012, implemented by Decree No.  460/2013 of 10  October 2013, 
the National Intellectua l Property Directorate (DINAPI) was created161, composed of the 
Directorate -General of Industrial Property, the Directorate -General of Copyright and Related 
Rights, and the Directorate -General of Enforcement.162 DINAPI is responsible for carrying out 
national policy on intellectual property and for administrative application of the regulations for the 
protection of IPRs, as provided in the Constitution, the legislation and international treaties and 
conventions concluded and ratified by Paraguay.163  
3.257.   Another chan ge during the review period was the adoption of Law No.  4.923/13 of 
20 June 2013 on geographical indications and designations of origin. Previously, these were 
governed by Articles 57 to 60 of Law No.  1.294/98 on trademarks, which were repealed. The Law 
on geographical indications and designations of origin provides a term of protection for 
geographical indications and indications of origin lasting ten years as of registration, which may be 
renewed indefinitely for equal periods, provided that renewal is re quested within the year 
preceding expiry and subject to completion of the same formalities as those required for 
registration.  
Table 3.25 Overview of the protection of intellectual property rights in Paraguay,  
February 2017  
Subject/legislation  Coverage  Term  Observations, 
limitations and 
exclusions  
Copyright and related 
rights  
Law No. 1.328/98 of 
27 August 1998 on 
copyright and related rights, 
as amended by Law 
No. 4.798/12 of 
31 December 2012 creating 
DINAP I 
Decree No. 5.159/99 of 
13 September 1999 
implementing Law 
No. 1.328/98  
Decree No. 6.780/11 of 
21 June 2011 implementing 
Chapter IV, "Right to 
compensatory 
remuneration” of Law 
No. 1.328/98  Copyright includes moral 
and economic rights. Any 
original litera ry, scientific 
or artistic product capable 
of being disclosed or 
published by any means or 
process, regardless of its 
type, form of expression, 
the nationality or domicile 
of its author or right 
holder, or the place of 
publication.  
Related rights include the 
moral and economic rights 
of performers, and the 
economic rights of 
producers of phonograms 
and broadcasting 
organizations.  Economic rights: lifetime 
of the author (or last 
co-author) plus 70  years.  
For collective, anonymous, 
pseudonymous, 
audiovisua l and broadcast 
works, and computer 
programs: 60  years from 
the date of disclosure or 
first publication.  
The economic rights of 
performers last for 
50 years as of the year 
following the performance.  
The rights of prod ucers of 
phonograms last for 
50 years  as of 1  January 
of the year following the 
first publication of the 
phonogram.  Registration is not a 
condition of protection.  
The use of works without 
gainful intent in the cases 
specifically provided in the 
Law in the chapter on 
exceptions and limitation s 
(or for educational or 
research purposes) is not 
considered to be 
infringement of copyright.  
Ideas, procedures, official 
texts, news and data are 
not protected.  
Patents  
Law No. 1.630/00 of 
29 November on patents, as 
amended by Law Any inv ention, whether 
product or process, that is 
new, involves an inventive 
step and is industrially 20 years from the date of 
filing the application, 
non-renewable.  The following may not be 
patented: plan ts and 
animals, with the exception 
of microorganisms, and 
                                                
161 Pursuant to Decree No.  5.762/16 of 16  August 2016, DINAPI was authorized to adopt the 
classification of products and services for the registration of trademarks.  
162 Law No.  4.798/12 may be viewed at: http://www.pj.gov.py/images/contenido/ddpi/leyes/ley -4798-
13-crea-la-direccion -nacional -de-propiedad -intelectual.pdf . 
163 DINAPI is the implementing authority  for Law No.  1.294/98 on trademarks; Law No.  1.630/00 on 
patents; Law No.  868/81 on industrial designs; Law No.  1.328/98 on copyright and related rights; and Law 
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  Subject/legislation  Coverage  Term  Observations, 
limitations and 
exclusions  
No. 4.798/12 of 
31 December 2012 creating 
DINAPI, Law No. 2.047/02 
of 10 December 2002 and 
Law No. 2.593/05 of 
17 June 2005  
Decree No. 14.201/01 of 
2 August 2001 
implementing Law 
No. 1.630/00; 
supplemented and partially 
amended by Decree 
No. 8.069/11 of 
23 December 2011  applicable; pharmaceutical 
products since 
January  2005.  essentially biological 
processes for the 
production of plants and 
animals that are not 
non-biological or 
microbiological processes; 
products or processes that 
are included in the state of 
the art; a nd inventions 
whose commercial 
exploitation must be 
prevented in order to 
protect public order, 
morality, human, animal or 
plant life or health and the 
environment.  
Compulsory licences may 
be granted three  years 
after the grant of the 
patent or four years after 
the filing of the application 
if the invention has not 
been exploited or "no 
serious and effective 
preparations have been 
made to do so ", or if 
exploitation has been 
suspended for a period of 
more than one year, 
provided that the non -use 
is not attri butable to force 
majeure  (difficulties of a 
technical or legal nature 
outside the control of the 
patent holder, which render 
the working of the patent 
impossible, or lack of 
resources or economic 
viability).  
Trademarks  
Law No. 1.294/98 of 
6 August 1998 o n 
trademarks, as amended by 
Law No. 4.798/12 of 
31 December 2012, 
creating DINAPI  
Articles 57 to 60 of Law 
No. 1.294/98 on trademarks 
were repealed by Law 
No. 4.923/13 of 
20 June 2013 on 
geographical indications and 
designations of origin  
Decree No. 22.365 /98 of 
14 August implementing 
Law No. 1.294/98; 
supplemented by Decree 
No. 6.329/11 of 
23 March  2011 and by 
Decree No. 5.762/16 
of16 August 2016 repealing 
its Article  5 Upon registration, any sign 
serving to distinguish 
products or services in the 
market, including names, 
commercial slogans, 
certification marks and 
collective marks. Prior use 
is not a condition for 
registration. Includes 
protection against the use 
and registration of 
well-known distinctive 
signs.  Ten years from the date of 
granting, renewab le 
indefinitely for further 
ten-year periods.  The following may not be 
registered as trademarks : 
(a) signs or distinguishing 
devices that are contrary to 
the law, public order, 
morality or proper 
behaviour; (b) armorial 
bearings, distinguishing 
marks, embl ems, names 
whose use is reserved to 
the State, other legal 
persons under public law or 
international organizations; 
(c) the usual shape of a 
product or its container, or 
the shape required for the 
product or service to which 
they refer; (d) signs which 
constitute, inter alia , 
reproduction, imitation, 
translation, transliteration 
or transcription in full or in 
part of an identical or 
similar distinctive sign 
well-known to the public in 
the corresponding sector 
and belonging to a third 
party. 
Industrial desi gns  
Law No. 868/81 of 
2 November 1981 on 
industrial designs, as 
amended by Law Upon registration, new 
designs. Industrial designs 
must be i ntended to give a 
special appearance to an 
industrial or craft product Five years from the date 
of filing the application. 
Renewable for 
two consecutive periods of 
the same duration.  Industrial designs may not 
be registered if they are 
not new, are used solely for 
technical purposes, or are 
contrary to public order, WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Subject/legislation  Coverage  Term  Observations, 
limitations and 
exclusions  
No. 4.798/12 of 
31 December 2012 creating 
DINAPI  
Decree No. 30.007/82 of 
5 January 1982 
implementing Law 
No. 868/81  and be used as a model 
for its manufacture.  morality or proper 
behaviour.  
New plant varieties  
Law No. 988/96 of 
15 October 1996 approving 
the International 
Convention for the 
Protection of New  Varieties 
of Plants  
Law No. 385/94 of 
5 July 1994 on seeds and 
the protection of cultivars, 
amended by Law 
No. 2.459/04 of 
4 October  2004 creating 
SENAVE  
Decree No. 7.797/00 of 
7 March 2000 implementing 
Law No. 385/94  New, uniform, distinct and 
stable pla nt varieties.  15 to 20 years depending 
on the species: currently 
15 years for agricultural 
species; 18 years for 
forest species, vines and 
fruit trees.  Protection by means of 
breeders' certificates.  
Plant breeders' certificates 
do not confer on the holder  
the right to prevent third 
parties from using the 
protected variety, when 
such use is made for 
experimental purposes, or 
to obtain and exploit a new 
variety, or when it is used 
by a farmer who sows it 
and keeps seed from the 
protected cultivar for his 
own use. 
Geographical indications 
and designations of 
origin  
Law No. 4.923/13 of 
20 June 2013 on 
geographical indications and 
designations of origin  Designation of origin: the 
name of a country, region, 
district or locality, or of a 
specific place, which 
serves to designate a 
product originating 
therein, the quality or 
characteristics of which 
are due essentially or 
exclusively to the 
geographical environment 
in which it is produced, 
including natural and 
human factors.  
Geographical indication: 
the name of  a country, 
region, department, 
district or locality, or of a 
specific place, which 
serves to designate a 
product originating 
therein, when the quality, 
reputation or other 
characteristic are basically 
due or attributable to its 
geographical origin.  Ten y ears, which may be 
renewed indefinitely for 
further ten -year periods, 
provided that renewal is 
requested within the year 
preceding expiry and 
subject to completion of 
the same formalities as 
those required for 
registration.  The following may not be 
registe red as geographical 
indications or designations 
of origin: (a) generic 
names of products which, 
although they refer to the 
place or region in which 
they are produced, through 
usage have become 
common names for the 
products identified by the 
public in the R epublic of 
Paraguay; (b) trademarks 
in force registered in good 
faith or if the rights in a 
trademark have been 
acquired as a result of its 
use in good faith before the 
geographical indication 
and/or designation of origin 
was protected in the 
country of or igin; 
(c) products that are 
identical or similar to 
others already registered 
as designations of origin 
when this is likely to 
mislead consumers; 
(d) names whose use may 
mislead with regard to the 
qualities or characteristics 
of the product concerned; 
(e) use of any means 
which, in designating or 
presenting the product, 
indicates or suggests that 
the product comes from a 
geographical region other 
than the actual 
geographical origin and 
may mislead the public as 
to the actual place of 
origin; and (f) the pro duct 
conflicts with the name of a 
plant variety or animal 
breed and may mislead the 
consumer.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Subject/legislation  Coverage  Term  Observations, 
limitations and 
exclusions  
Utility models  
Law No. 1.630/00 of 
29 November 2000 on 
patents, as amended by 
Law No.  4.798/12 of 
31 December 2012 creating 
DINAPI  
Decree No. 14.201/01 of 
2 August 2001 
implementing Law 
No. 1.630/00, 
supplemented and partly 
amended by Decree 
No. 8.069/11 of 
23 December 2011  Provisions on the form, 
configuration or 
arrangement of an object 
that enables it to function 
better or differently, or 
that gives it a usage or 
technical effect that it did 
not previously have. Utility 
models must be 
industrially applicable and 
novel.  Ten years from the date  of 
filing the application, 
non-renewable.  Protection conferred by a 
utility model patent.  
The following are not 
consider ed to be utility 
models: processes, 
substances and 
compositions, including 
those of a chemical and 
metallurgic or other nature, 
and materials excluded 
from patent protection.  
Layout -designs of 
integrated circuits  
TRIPS (there is no domestic 
legislation)  Protection upon 
registration. The 
layout -designs must be 
original.  Ten years from the date of 
filing the application.  Layouts in commercial use 
for over two years in any 
part of the world may not 
be registered. Rights may 
only be claimed against 
acts carr ied out for 
industrial or commercial 
purposes.  
Source:  WTO Secretariat, based on information provided by the authorities and WIPO.  
3.3.8.2   Copyright and related rights  
3.258.   Copyright and related rights are protected by Article 110 of Paraguay 's Constitution, and 
by Law No.  1.328/98 of 27  August 1998 on copyright and related rights, implemented by Decree 
No. 5.159/99 of 13  September 1999 and Decree No.  6.780/11, which implements its Chapter IV.  
3.259.   The Directorate -General of Copyright and Related Rights is responsible for  administering 
and implementing policies decided by DINAPI in relation to copyright and related rights.  
3.260.   The term of economic rights is the lifetime of the author plus 70 years following his death. 
For collective, anonymous, pseudonymous, audiovisual, broad cast works or computer programs, 
protection is for 60 years from the date of their disclosure or first publication. The economic rights 
of performers last for 50 years from the year following the performance. The rights of phonogram 
producers last for 50 y ears, from 1  January of the year following the first publication of the 
phonogram.  
3.261.   A work does not have to be registered in order to receive protection. Registration is simply 
declaratory and not constitutive of rights, therefore, failure to register it do es not prejudice either 
the enjoyment or exercise of the rights recognized by the Law (Articles 152 and 153 of Law 
No. 1.328/98). Nonetheless, entry in the National Register of Copyright and Related Rights at 
DINAPI 's Directorate -General of Copyright and R elated Rights enables the right holder to have 
valid proof of his rights.  
3.262.   Applications for registration by interested parties or their attorneys must be in writing 
(Article 14 of Decree No.  5.159/99). Once the requirements have been fulfilled, the applicat ion is 
examined as to form and, once it has been approved, an order is given for its publication in a 
national newspaper for three consecutive days (Article  33 of Decree No.  5.159/99). Following 
publication, a period of 30 working days is given for the pre sentation of opposition and if there is 
none, a substantive examination is undertaken for the subsequent issue of the registration 
certificate (Article  34 of Decree No.  5.159/99).  
3.3.8.3   Patents and utility models  
3.263.   The legal framework for the protection of patents  and utility models comprises  : (a) Law 
No. 1.630/00 of 29  November 2000 on patents, as amended by Law No.  2.047/02 of 
10 December  2002, enabling pharmaceuticals to be patented as of 1  January 2005; Law 
No. 2.593/05 of 17  June 2005, amending various Articl es on the procedure for patent application WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 96 - 
 
  and repealing Article  75 on penal action for infringement of patent rights; Law No.  4.798/12 of 
31 December 2012 creating DINAPI; and (b) Decree No.  14.201/01 of 2  August 2001 
implementing Law No.  1.630/00, as ame nded and supplemented by Decree No.  8.069/11 of 
23 December 2011.  
3.264.   In order to be protected, patents must relate to new inventions of products or processes 
involving an inventive step and be industrially applicable (Article 3 of Law No.  1.630/00). Since 
January 2005, it has also been possible to patent pharmaceuticals, pursuant to Law No.  2.047/02. 
The following may not be patented: p lants and animals, with the exception of microorganisms, and 
essentially biological processes for the production of plants or animals that are not non -biological 
or microbiological processes; products or processes that are included in the state of the art; and 
inventions whose commercial exploitation must be prevented in order to protect public order, 
morality, human, animal or p lant life or health and the environment (Article  5 of Law 
No. 1.630/00).  
3.265.   In order to be protected by a patent, utility models must be industrially applicable and 
novel (Article 53 of Law No.  1.630/00). Processes, substances and compositions, including thos e of 
a chemical and metallurgic or other nature, and materials excluded from patent protection are not 
considered to be utility models.  
3.266.   DINAPI is the authority responsible for decisions on granting patents, through its 
Directorate -General of Industrial Pro perty. A patent has a non -renewable term of 20 years from 
the date of filing the application (Article  29 of Law No.  1.630/00) and patents for utility models 
have a non -renewable term of ten years from the date of filing the application.  
3.267.   The granting of a p atent (for an invention or a utility model) involves an examination as to 
form in order to see whether it complies with the requirements laid down in the Law; a period of 
up to 60 working days is given in which to correct any omission or lacuna. A patent a pplication 
remains secret for 18 months after filing or after the priority in the case of a foreign patent. 
Following this period, the application is published for a period of five days in two national 
newspapers at the applicant 's expense, although he may  request that it be published before expiry 
of the period indicated (Article 23 of Law No.  1.630/00). The next step is to carry out a 
substantive examination of the application, but prior to this any interested party may send in 
comments (Article  24 of Law  No. 1.630/00). The substantive examination of the application takes 
place in order to determine whether the invention meets the requirement of novelty and the other 
patentability requirements laid down in the Law for granting a patent, as well as the requ irement 
of unity of the invention (Article  25 of Law No.  1.630/00). Once these requirements have been 
met, a decision on granting the patent is issued and a corresponding certificate is sent to the 
owner. The applicant must publish the grant of the patent for a period of five days in two national 
newspapers (Article  28 of Law No.  1.630/00).  
3.268.   The Law also provides for the granting of compulsory licences. Three years after the patent 
has been granted or four years after the date of filing the application (whic hever is the most 
recent), any interested party may request DINAPI for a compulsory licence if the invention has not 
been exploited or no serious and effective preparations have been made to exploit it, or if 
exploitation has been suspended for a period of  more than one year, provided that the non -use is 
not attributable to force majeure . Compulsory licences may also be granted for reasons of 
anti-competitive practices, abuse of the rights conferred by the patent or abuse of a dominant 
position in the marke t. It is also provided that the Executive, by means of a decree, may grant 
compulsory licences for reasons of public interest (Articles 43, 44 and 45 of Law No.  1.630/00).  
3.269.   In 2011, DINAPI received 356 applications for patents or utility models, 388 in 2012 , 
451 in 2013, 406 in 2014, 365 in 2015 and 317 in 2016. Of the applications received in 2016, 
95% were from non -residents (93.4% in 2015). Paraguay granted five patents in 2011, four in 
2012, eight in 2013, ten in 201 5 and 13 in 2016.  
3.3.8.4   Trademarks  
3.270.   Trademark s are protected by Law No.  1.294/98 of 6  August 1998 on trademarks, 
implemented by Decree No.  22.365/98 of 14  August 1998, which was supplemented during the 
review period by Decree No.  6.329/11 of 23  March 2011. The supplement consisted of creating a WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 97 - 
 
  section on geographical indications, but this provision no longer applied following the enactment of 
Law No.  4.923/13 of 20  June 2013 on geographical indications and designations of origin.164 
3.271.   DINAPI is responsible for receiving applications to register trademark s, through the 
Directorate -General of Industrial Property. Formalities for registering a trademark take a minimum 
of six months from the date of filing the application. The Directorate -General of Industrial Property 
issues a registration certificate. The r egistered trademark has a term of ten  years from the date on 
which it is granted and may be renewed indefinitely for further ten -year periods (Article 16 of Law 
No. 1.294/98).  
3.272.   Owners of trademarks for products or services registered abroad enjoy the guara ntees 
provided after the marks have been registered in Paraguay (Article  18 of Law No.  1.294/98). Use 
of the trademark is compulsory and its registration will be cancelled if it has not started to be used 
within five years immediately following its registr ation or if its use has been suspended for more 
than five consecutive years.  
3.273.   Pursuant to Article  2 of Law No.  1.294/98, the following may not be registered as 
trademarks: (a) signs or distinguishing devices that are contrary to the law, public order, moral ity 
or proper behaviour; (b) armorial bearings, distinguishing marks, emblems, names whose use is 
reserved to the State, other legal persons under public law or international organizations; (c) the 
usual shape of a product or its container, or the shape re quired for the product or service to which 
they refer; (d) signs which constitute, inter alia , reproduction, imitation, translation, transliteration 
or transcription in full or in part of an identical or similar distinctive sign well -known to the public 
in the corresponding sector and belonging to a third party.  
3.274.   Between September 2013 and September 2016, 54,330 trademarks were granted, 50% of 
them to foreigners. Over the same period, a total of 88,432 applications were filed.  
3.3.8.5   Industrial designs  
3.275.   Industrial designs are protected by Law No.  868/81 of 2  November 1981 on industrial 
designs, implemented by Decree No.  30.007/82 of 5  January 1982. Registration is with DINAPI, 
which may grant protection for five years from the date of filing the application, renewab le for 
two consecutive periods  of the same duration. Industrial designs that are new, not used 
exclusively to obtain a technical effect and are not contrary to public order, morality or proper 
behaviour may be registered (Article  2 of Law No.  868/81).  
3.3.8.6   New varieties of plants  
3.276.   New plant varieties are protected in Paraguay by Law No.  385/94 of 5  July 1994 on seeds 
and the protection of cultivars, as amended by Law No.  2.459/04 of 4  October 2004, which created 
SENAVE, and was in turn supplemented and amended by  Law No.  4.866/13 of 8  January 2013 and 
Decree No.  7.797/00 of 7  March 2000 implementing Law No.  385/94. Paraguay also approved the 
International Convention for the Protection of New Varieties of Plants (UPOV) by means of Law 
No. 988/96 of 15  October 1996.  Paraguay is party to the UPOV 78 Act.  
3.277.   Applications to register plant varieties in the National Register of Protected Cultivars, 
created by Law No.  385/94, are filed with SENAVE, which is the authority for implementation of 
international conventions and ag reements on plant quality and health, seeds and the protection of 
new plant varieties and plant species derived from biotechnology of which Paraguay is a member 
or State party.  
3.278.   Varieties which meet the requirements of distinctness, homogeneity, stability, novelty and 
denomination (Articles 12, 25 and 26 of Law No.  385/94) may be entered in the National Register. 
Recognition as a breeder of a new variety or line may be given jointly to more than one natural 
and/or legal person. A breeder 's title may be marke ted, assigned and transmitted and the 
successor may use, benefit from or dispose of the title for the period remaining to its owner in the 
                                                
164 Law No.  1.294/98 on tr ademarks protected geographical indications. The corresponding provisions 
were repealed with the enactment of Law No.  4.923/13 of 20  June 2013 on geographical indications and 
designations of origin.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 98 - 
 
  same way and on the same terms as the owner (Article  32 of Law No.  385/94). If the 
requirements are met, SENAVE grant s the breeder 's title, which is valid for 15 to 20 years 
depending on the species; it is currently 15 years for agricultural species and 18 years for forest 
species, vines and fruit trees.  
3.279.   A plant breeder 's certificate does not confer on the holder the rig ht to prevent third parties 
from using the protected variety if such use is for experimental purposes to obtain and exploit a 
new variety, or is used by a farmer who sows it and keeps seed from the protected cultivar for his 
own use (Articles 34 and 35 of Law No.  385/94).  
3.3.8.7   Geographical indications and designations of origin  
3.280.   The review period saw the adoption of Law No.  4.923/13 of 20  June 2013 on geographical 
indications and designations of origin. Prior to this there was no specific law on the protection of  
geographical indications or designations of origin, and they were protected under Articles 57 to 60 
of Law No.  1.294/98 on trademarks, which were repealed when the new Law was adopted. In 
May 2017, DINAPI was preparing draft implementing regulations for L aw No.  4.923/13.  
3.281.   The registration of geographical indications and designations of origin is the responsibility 
of DINAPI. Geographical indications may be recognized and registered ex officio  or may be 
requested by persons who can prove a legitimate interes t, meaning natural or legal persons 
directly involved in extracting, producing or processing the product or products it is sought to 
protect, as well as their associations. Registration is valid for ten years and may be renewed 
indefinitely for further ten -year periods, provided that renewal is requested during the year 
preceding the expiry of registration (Article  16 of Law No.  4.923/13).  
3.282.   Applications for registration are filed with a regulatory committee, which presents them 
within 30  working days of havi ng been legally established. The contents of the application are 
published in the Official Journal and in a national newspaper for one day, at the expense of the 
applicant. After publication, a period of 30 working days following the date of publication is  given 
for opposition to registration. Once these requirements have been met, a decision is taken on 
registration, which is published in the Official Journal and in a national newspaper for one day 
(Articles 18 to 22 of Law No.  4.923/13).  
3.283.   If a geographical  indication or designation of origin has been registered abroad, the MRE 
may deal with it according to the terms of the relevant international treaties (Article 2 of Law 
No. 4.923/13). Law No.  4.923/13 also recognizes registration of foreign geographical i ndications or 
designations of origin already registered in the country of origin which offers reciprocal treatment 
for registration granted in Paraguay. The registration procedure is governed by the registration 
provisions in the Law and submission of the certificate of recognition issued by the country of 
origin in the name of the applicant is an essential requirement (Article 23 of Law No.  4.923/13).  
3.3.8.8   Other intellectual property rights  
3.284.   There is no domestic legislation on the protection of layout -designs (t opographies) of 
integrated circuits in Paraguay, but they are protected under the TRIPS Agreement. Protection is 
given through registration for a period of ten years from the date of filing the application.  
3.285.   Undisclosed information is protected in Paraguay by Law No.  3.519/08 of 25  June 2008 on 
the protection of test data requested by the health authority for the approval of phytosanitary 
products, and Law No.  3.283/07 of 3  September 2007 on protection of undisclosed information 
and test data for the registr ation of pharmaceuticals, which governs undisclosed information.  
3.3.8.9   Parallel imports  
3.286.   Paraguay recognizes international exhaustion of industrial property rights by means of Law 
No. 1.630/00 on patents, and for rights in trademarks by means of Law No.  1.294/98 on 
trademarks, so parallel imports are permitted. The relevant provisions in these two Laws specify 
that a right holder in Paraguay may not prevent parallel imports from another country in which the 
products to be imported have been placed on the market by  the right holder or with his 
authorization.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 99 - 
 
  3.287.   Pursuant to Law No.  1.328/98 on copyright and related rights, parallel imports are not 
permitted in the case of copyright, as the right holder has the exclusive right to authorize or refuse 
import into Paraguay,  irrespective of whether he has or has not authorized such copies in the 
country of origin. Importation rights also include the electronic transmission of works. This right 
suspends the free movement of such copies at the border, but does not cover a singl e copy for 
individual use (Article  29 of Law No.  1.328/98).  
3.3.8.10   Enforcement  
3.288.   Law No. 4.798/12 created the Directorate -General for Enforcement, under the authority of 
DINAPI, to be responsible for promoting and protecting all forms of IPRs. This Directorate also  has 
to take preventive and investigative action to punish piracy and counterfeiting and is therefore 
empowered to take administrative action with a view to preventing infringement of IPRs. 
Intervention may be ex officio  or following a direct complaint fro m right holders or their 
representatives; it may take place at customs offices anywhere in the country, in commercial 
premises, warehouses or other public or private premises.165 This is intended to respond to the 
problem caused by inadequate enforcement of IPRs in Paraguay, which results in high levels of 
piracy. The Directorate -General for Enforcement is carrying out awareness -raising activities and 
strategic campaigns to promote observance of IPRs.  
3.289.   In 2015, Paraguay was removed from the Special 301 Watch L ist of the Office of the 
United States Trade Representative (USTR) as a result of an out -of-cycle review. Paraguay was 
first identified as a priority country in 1998 in the context of a "Special 301 " investigation166 and 
afterwards continued to appear on the  list. Following this progress, the United States and 
Paraguay signed a Memorandum of Understanding on Intellectual Property Rights in June 2015, 
under which Paraguay undertook to take specific steps to improve its IPR protection and 
enforcement environmen t. The United States gives positive recognition in the "Special 301 " Report 
to the efforts made by DINAPI to improve interinstitutional cooperation.167 
3.290.   The authorities have determined the main difficulties in enforcing IPRs as exchange of 
information among v arious government agencies and the correct use of information. Another 
challenge mentioned is the creation of a National Intellectual Property Coordination Centre to 
combat counterfeiting.168 
3.291.   According to information provided by the Directorate -General for E nforcement, between 
2013 and 2016 goods worth US$245.5  million were seized. Among the principal products seized 
were electronic and telephony goods, perfumes, clothing, footwear, sunglasses, accessories, toys 
and phonograms. DINAPI has investigated the act ivities of three copyright collective management 
associations (Autores Paraguayos Asociados (APA), Entidad Paraguaya de Artistas, Intérpretes y 
Ejecutantes (AIE), and Sociedad de Gestión de Productores Fonográficos del Paraguay (SGP)) for 
alleged irregular ities. 
 
 
                                                
165 WIPO document WIPO/ACE/11/6 of 14  July 2016, submitted  at the Eleventh Session of WIPO 's 
Advisory Committee on Enforcement, available at: 
http://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_11/wipo_ace_11_6.pdf .  
166 "Special 301" investigations identify countries which the United States authorities consider infringe 
IPRs. Countries whose policies are considered to have the most or more cost effects for United States right 
holders or products are classified as priori ty countries.  
167 Report available online at: https://ustr.gov/sites/default/files/USTR -2016-Special -301-Report.pdf . 
168 Online information from DINAPI, viewed at: http://www.dinapi.gov.py/index.php/noticias/exponen -
en-mexico -sobre -retos-de-la-observancia -de-la-propiedad -intelectua l-en-paraguay . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, forestry and fishing  
4.1.1   Agriculture and livestock  
4.1.1.1   General features  
4.1.  Crop farming and livestock continue to be important for Paraguay and in 2016 they 
accounted for 15.7% of total GDP. In 2015, crop farming, lives tock, hunting and fishing provided 
employment for 20% of the active population, somewhat less than in previous years, and there 
were 200,000 families engaged in family farming. Paraguay is the world's sixth largest producer 
and its fourth largest exporter of soya and soya products. In addition, it is the world's fourteenth 
largest producer of fresh and chilled meat and its seventh largest exporter of frozen bovine meat. 
Farm lands account for 55% of the country's total area.1 Agricultural production is conc entrated in 
the eastern region of the country, although livestock and dairy farming goes on in the north and 
west.  
4.2.  The Ministry of Agriculture and Livestock (MAG) is the department responsible for formulating 
and coordinating Paraguay's agricultural policy .2 Several agencies with related functions are 
attached to the MAG, such as the National Animal Quality and Health Service (SENACSA); the 
National Plant and Seed Quality and Health Service (SENAVE); the National Cooperative Institute 
(INCOOP); the National  Forestry Institute (INFONA); the Paraguayan Technology Institute (IPTA); 
the National Rural Development and Land Institute (INDERT); the Agricultural Equipment Bank 
(CAH); and the Livestock Fund (FG). The MAG's current programmes and projects are listed i n 
Table A4.1.  
4.3.  During the review period, there were various changes in Paraguay's institutional framework 
for agriculture and forestry, such as the establishment of the Paraguayan Agricultural Technology 
Institute (IPTA) in 2010 and the National Agricultura l and Forest Biosecurity Commission 
(COMBIO) in 2012. The IPTA's main objective is the generation, reclamation, adaptation, 
validation, dissemination and transfer of agricultural technology and the management of 
agricultural and forest genetic resources. I t is also responsible for developing research 
programmes and tech nologies for increasing productivity and competitiveness .3 Moreover, since 
2011 the MAG has had an agro -energy department in the Agricultural Outreach Directorate, whose 
main task is certifyi ng domestic raw materials for producing biofuel, biomass and biogas.  
4.4.  The principal policies that currently govern the agricultural sector can be found in various 
documents, namely: the Paraguayan National Development Plan 2014 -2030 (section 2), the 
Agricul tural Strategic Framework (2014 -2018) and the Institutional Strategic Plan 2014 -2018. 
Table 4.1 summarizes the main features of these policies.  
Table 4.1 Plans and policy instruments relating to the agricultur al sector, 2016  
Plan Main features  
Paraguayan 
National 
Development Plan 
(PND) 2014 -2030 Broad development plan, which, in its section 2, specifies as its objectives: increasing 
agricultural production; strengthening family farming and its linkage with val ue chains, 
and positioning Paraguay among the world's leading food exporters.  
Agricultural 
Strategic 
Framework 
2014-2018 Roadmap for agricultural and rural development.  Based on six main pillars: 
(i) agricultural competitiveness; (ii) development of famil y farming and food security; 
(iii) sustainable development of forestry and provision of environmental services; 
(iv) livestock and farming development; (v) risk management associated with variability 
and climate change; and (vi) social integration, employa bility and rural entrepreneurship. 
Contains general and specific programmes under each heading.  
                                                
1 Online information from the FAO, viewed at: http://www.fao.org/countryprofiles/index/en/?iso3=PRY . 
2 The MAG was established by Law No.  81/92 on establishing the organi zational and operational 
structure of the Ministry of Agriculture and Livestock.  
3 The IPTA was created by Law No.  3.788/10 of 21  June 2010. Online information from the IPTA, viewed 
at: http://www .ipta.gov.py/index.php/marco -legal. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Plan Main features  
Institutional 
Strategic Plan 
2014-2018 The MAG's principal medium -term management tool. Has four strategic objectives: to 
promote agricultural competitiveness;  to strengthen family farming (both of these for the 
purpose of introducing agricultural products into the domestic and international market); 
strengthening the MAG; and the sustainable management of productive natural resources 
such as forests, soil and w ater. 
Other plans, 
programmes and 
projects  Implementation through subordinate entities: Vice -Ministry of Agriculture, Vice -Ministry 
of Livestock, Marketing Directorate.  
Source:  MAG ( http://www.mag.gov.py/3.%20Plan%20Estrategico%20Institucional%202014 -2018.pdf  and 
http://www.mag.gov.py/sigest_actas/Marco%20Ampliado.pdf ), 
http://www.gacetaoficial.gov.py/index/getDocumento/7461 . 
4.5.  There are two taxes that exclusively affect the agricultural sector: the Rural Property Tax 
(1% of the assessed value of the land, in accordance wit h Law No.  125/91) and the Agricultural 
Income Tax (IRAGRO). Up until 2013, the agricultural sector was almost exempt from taxes. Law 
No. 5.061/2013, which amended certain provisions of Law No.  125 of 9  January  1992 establishing 
the new tax regime and intro duced other tax measures, was used to implement the decision to 
equate the IRAGRO with the Commercial, Industrial and Services Income Tax (IRACIS) and apply 
the general 10% rate to it. Moreover, VAT was imposed at the rate of 5% on all products of the 
agricultural and fisheries subsectors in their natural state. Products which have undergone some 
form of processing were already being taxed. In its present form, the IRAGRO is a tax on earnings 
from agricultural activities within the national territory. There  are simplified regimes for taxpayers 
with incomes of less than ₲1,000  million. In addition, natural persons whose annual incomes do 
not exceed 36 times the minimum wage ( ₲65 million) are exempt from the IRAGRO and VAT.  
4.6.  The legal changes introduced during the review period include the enactment of Law 
No. 5.264/14 on t he development of the dairy chain, the strengthening of domestic production and 
the promotion of dairy product consumption.4 The purpose of this law, which establishes an 
Inter-Institutional Dairy Competitiveness Commission, is to implement the strategies contained in 
the National Plan for the Sustainable Development of the Dairy Chain, boost domestic production 
and ensure access to and the consumption of safe high -quality dairy products. The MAG is the 
executive agency for the Law, working through the Vice -Ministry of Livestock and the SENACSA, 
which are charged with coordinating and guaranteeing the effective implementation of the Plan, by 
establishing strategies and activities jointly with the private sector. These strategies and activities 
are grouped un der four headings: organization and management of the primary sector; 
organization of the industrial sector, marketing and markets; family farming; and food security 
and sectoral information. The Law provides the financing needed to implement the Plan by 
imposing a 0.25% levy on the import value or first sale (in the case of domestic production) of 
anti-brucellosis and tuberculosis vaccines, together with a 0.10% tax on milk sales by 
manufacturers and a tax of 0.10% of the assessed value of every bovine ani mal marketed at 
national level.5 It also stipulates that, as far as possible, State and municipal bodies and entities 
should purchase milk of Paraguayan origin.  
4.1.1.2   Production  
4.7.  During the review period, production of the principal crops varied significantly fro m year to 
year. In volume terms, soya is the main crop, followed by maize, wheat and rice. Although soya 
and maize are, with a large difference between them, the most important crops, it is worth noting 
the good performance of rice during the review period : in 2015 the i rrigated rice harvest was 
twice as large as in 2011 (Chart  4.1). 
                                                
4 Law No.  5.264/14. Viewed at: http://www.bacn.gov.py/MzAwMg==&ley -n-5264. 
5 The assessed value is the basis for determining the payment of the transfer tax on bovine and equine 
animals and buffaloes. The assessed value applied in 2017, on  the basis of Resolution No.  91/2015, is as 
follows: cows and heifers, ₲1.65  million; bulls and bullocks, ₲2.5  million; calves, ₲1  million. A tax of 1% of the 
assessed value is applied for bovine species and 1.1% for buffaloes. Online information from SENA CSA, viewed 
at: http://www.senacsa.gov.py/index.php/comision -interinstitucional/valor -aforo. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Chart 4.1 Production of the principal agricultural crops, 2011 -2016  
(1,000 tonnes)  
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,000
2011 2012 2013 2014 2015 2016
Soya Maize Wheat Rice (irrigated)
 
Source:  Directorate of Agro -Economic Studies  (DEA).  
4.8.  Chart 4.2 shows the trend in cultivated area for the various crops. It should be noted that, 
since 2011, there has been a significant increase in the area devoted to the production of soya and 
irrigated rice.  
Chart 4.2 Area planted with the principal agricultural crops, 2011 -2016  
(1,000 hectares)  
01,0002,0003,0004,000
2011 2012 2013 2014 2015 2016
Soya Maize Wheat Rice (irrigated)
 
Source: Directorate of Agro -Economic Studies (DEA).  
4.9.  The other agricultural activity of great importance for Paraguay is bovine meat production. 
According to the latest data available at the time of compiling this report, in 2014 the bovine herd 
in Paraguay numbered 14.47  million head, as compared with 9.88  million in 2008. Pig meat 
production has increased since 2014, whereas the production of poultry products  fluctuated during 
the period.  
4.1.1.3   Trade in agricultural products  
4.1.1.3.1   Exports  
4.10.   In 2016, exports of agricultural products accounted for 63.4% of total goods exports. In 
value terms, soya (in the form of beans, oil and meal/residues) is Paraguay's principal export cr op, 
followed by maize and wheat (Chart  4.3). WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Chart 4.3 Cereals exports, 2012 -2016  
(US$ million)  
05001,0001,5002,0002,5003,0003,5004,000
2012 2013 2014 2015 2016
Soya, beans Soya, oil Soya, meal/residues Maize Wheat Rice
 
Source:  WTO Secretariat estimates, based on Comtrade data.  
4.11.   With respect to livestock, bovine meat continues to be by far the most important export 
item (Chart 4.4). In 2016, some 89% of bovine meat production was exported. Exports of pig 
products have increased significantly in recent years; thus, whereas in 2012 only 1% of pig 
production was exported, in 2016 expo rts accounted for 37%.  
Chart 4.4 Bovine meat exports, 2012 -2016  
(US$ thousand ) 
0100,000200,000300,000400,000500,000600,000700,000800,000900,000
2012 2013 2014 2015 2016
Bovine meat, fresh/chilled Bovine meat, frozen Bovine offal, frozen
 
Source:  WTO Secretariat estimates, based on Comtrade data.  
4.1.1.4   Imports  
4.12.   Paraguay's agricultural imports accounted for 9.6% of total g oods imports in 2016. Notable 
among the principal imported items are beverages, tobacco, food preparations, and cereal -based 
preparations. The main markets of origin are Brazil and Argentina.  
4.1.1.5   Trade measures and other policy instruments  
4.1.1.5.1   Border measures  
4.13.   The average MFN tariff applied to agricultural products (WTO definition) by Paraguay in 
2017 was 9.9% (Table 3.6), which is higher than the 8.2% applied to non -agricultural products WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  and the general average of 8.4%. The product categories with the highest tarif fs are sugar and 
confectionery, with an average tariff of 18.8% in 2017, alcoholic beverages and liquids, and 
tobacco, with 16.5%, and dairy products, with 14.9%. The average bound tariff for agricultural 
products (WTO definition) is 32.8%. Paraguay has no t reserved the right to use the special 
safeguards for which the WTO Agreement on Agriculture provides.  
4.14.   Paraguay applies the MERCOSUR common external tariff to agricultural products, with some 
exceptions.6 Within MERCOSUR, trade in these products attracts a zero tariff, except in the case of 
sugar.  
4.1.1.5.2   Domestic support  
4.15.   During the review period, spending on domestic support varied considerably, increasing 
between 2010 and 2012, the year in which it peaked, and decreasing thereafter. In 2015, 
domestic support not ified to the WTO totalled US$79.7  million, equivalent to barely 0.3% of GDP. 
All the domestic support notified either fell within the green box or was a measure exempt from 
reduction commitments (special and differential treatment, development programmes) 
(Table  4.2). 
4.16.    The green box support notified to the WTO related to general services (research, pest and 
disease control, diseases, agricultural extension services, agricultural training, and marketing); 
domestic food aid; assistance with restructuring thro ugh investment aids; and environmental 
programmes. The measures notified as being exempt from reduction commitments included 
investment subsidies generally available for agriculture and subsidies for agricultural inputs 
generally available for low -income o r resource -poor producers (Table 4.2).  
Table 4.2 Domestic support, 2010 -2013  and 2015  
(US$ 1,000)  
 2010  2011  2012  2013  2015  
Total Domestic Support (I+II)  80,378  93,382  127,962  101,923  79,676  
I. "Green box"       
Agricultural research and technology generation and transfer  2,968  6,623  8,329  8,310  6,672  
Study for the purpose of integrated rural development targeted at 
the small producer  n/a 16 n/a n/a n/a 
Livestock research  1,509  n/a n/a n/a n/a 
National Pl ant and Seed Quality and Health Service (SENAVE)  11,146  14,507  15,151  17,260  7,228  
FOCEM – Strategic Plan for the Eradication of Foot -and-Mouth 
Disease from MERCOSUR  n/a 876 933 220 n/a 
FOCEM – Biosecurity Laboratory and Strengthening of the  
Food Testing  Laboratory  n/a 95 72 108 30 
National Animal Health Service (SENACSA)  18,475  22,361  21,369  29,139  27,538  
Technical assistance for agricultural producers  9,083  15,883  7,499  692 7,494  
National Livestock Development Programme  n/a 4,506  1,190  1,169  611 
Agricultural and Economic Programme for Indigenous 
Communities  n/a 725 640 404 - 
Extension Services for Rural Innovation  n/a 340 n/a n/a n/a 
Training for Agricultural Technicians  7,795  12,802  8,786  7,917  5,005  
Assistance for Agricultural Producers throug hout the Marketing 
Chain  1,451  2,044  n/a 1,355  1,023  
Promotion of Food Production through Family Farming  n/a 5,313  11,626  9,317  5,891  
Agricultural Diversification  n/a 141 97 81 n/a 
Sustainable Rural Development (PRODERS)  n/a 3,477  8,618  9,759  11,441  
Strengthening of Family Farming "Ñamombarete Ñemity Jopara"  n/a 1,550  395 n/a n/a 
Sustainable Development of the Western Region  n/a 1,357  1,947  n/a n/a 
Agricultural Development of the Eastern Region  n/a 159 1,630  411 427 
National Biofuel Programme  n/a 101 65 69 n/a 
Procurement of Equipment for Paraguayan Agricultural Production  n/a n/a n/a n/a 1,254  
Soil Management, Conservation and Reclamation  n/a 506 2,646  558 997 
II. Measures exempt from reduction commitments. Special 
and differential treatment, "dev elopment programmes "       
Investment subsidies generally available to agriculture (Support 
for Family Farming)  15,043  n/a 21,478  12,594  1,553  
                                                
6 The exceptions include flowers, chocolates, some cereal -based prepara tions, some organic chemical 
products, lactose, glucose, plant extracts, cocoa powder, canned vegetables, alcoholic beverages (wines, grain 
alcohol), unmanufactured tobacco and cigars.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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   2010  2011  2012  2013  2015  
Agricultural input subsidies generally available to low -income or 
resource -poor producers:       
- Procurement of agricultural inputs to strengthen the position of 
small-scale agricultural producers  12,908  n/a 262 261 n/a 
- Procurement of agricultural inputs for the sustainable 
management of natural resources  n/a n/a 1,033  350 n/a 
 - Project for the Inclusion of Family Farming in Value Chains 
(Inclusive Paraguay Project)  n/a n/a n/a n/a 2,500  
- Encouragement for the Development of Competitiveness in 
Agricultural Production  n/a n/a 14,196  1,949  12 
n/a Not applicable.  
Note:  In May  2017, the authorities indicate d that the notifications for 2014 and 2016 were in the course of 
being prepared.  
Source:  WTO documents G/AG/N/PRY/24 of 11  August  2016; G/AG/N/PRY/23 of 4  March  2015; 
G/AG/N/PRY/21 of 9  January  2013; and G G/AG/N/PRY/19  of 5 December  2011.  
4.17.   The MAG also has  a series of direct and indirect support programmes for the sector 
(Table  A4.1) . 
4.1.1.5.3   Export subsidies  
4.18.   Paraguay has notified the WTO that it did not grant any subsidies for exports of agricultural 
products during the period between 2011 and 2015.7 The authoriti es have indicated that Paraguay 
has not granted any export subsidies since its last notification.  
4.1.1.5.4   Other measures  
4.19.   Paraguay provides certain other forms of government support for farmers by granting tax 
concessions, by offering advantageous government procur ement procedures and by authorizing 
lines of credit.  
4.20.   The tax concessions are primarily intended to provide support for family farming through 
exemption from the IRAGRO and the non -application of VAT for micro -producers, defined as 
natural persons whose ann ual income does not exceed the equivalent of 36 minimum living 
wages.8 There are also tax concessions aimed at small rural producers, defined as those whose 
incomes did not exceed ₲200 million in the previous tax year. In this case, the VAT withheld is 
0.5% of the total value of the sale, VAT excluded.9 Moreover, capital goods produced by domestic 
manufacturers for direct use in the agricultural production cycle are exempt from VAT 
(section  3.1.4).  
4.21.   Where the advantages provided through government procuremen t are concerned, milk 
purchased by government entities must be of domestic origin. Moreover, in 2015 the Government 
introduced a simplified process for purchasing agricultural products produced by family farming.10 
Finally, both the Development Finance Agen cy (AFD) and the Livestock Fund (FG), the Agricultural 
Equipment Bank (CAH) and the National Development Bank (BNF) authorize lines of credit for 
agricultural products and livestock (section  3.2.4.7.2). 
4.1.2   Forestry  
4.22.   Forests account for 47% of the country's tot al area. In 2016, forestry contributed 1.3% of 
GDP and it is estimated that, directly or indirectly, the subsector employs around 100,000 people. 
                                                
7 WTO documents G/AG/N/PRY/20, G/AG/N/PRY/22, and G/AG/N/PRY/25 of 14  December  2012, 
10 February  2015 and 11  August  2016, respectively.  
8 Law No.  125/91 (Article 34), as amended by Law No.  5.061/13 and Article 27 of General Resolution 
No. 24/14. Decree No.  4.565/15 of 11  December  2015 provides a definition of family farming.  
9 Decree No.  4.565/15 of 11  December  2015. Viewed at: 
http://www.gacetaoficial.gov.py/index/getDocumento/31609 . 
10 Decree No.  3.000 of 27  January  2015 establishing the supplementary pr ocurement procedure called 
the simplified process for the purchase of agricultural products produced by family farming and laying down 
criteria for implementing the procurement and selection processes used for these purchases. Viewed at: 
http://www.gacetaoficial.gov.py/index/detalle_publicacion/24858 . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  In 2016, timber exports accounted for 0.8% of total exports. Paraguay is the world's fourth largest 
exporter o f charcoal.11 The main export destinations for wood and wood charcoal (HS Chapters 44 
and 47) are the United States, the United Kingdom and Germany.  
4.23.   The responsibilities of the National Forestry Institute (INFONA) include the formulation and 
implementation of forestry policy; the promotion of forestry development; the monitoring and 
inspection of the extraction, processing and marketing of forestry products; and the promotion of 
public and private investment.12 All private properties that contain forest areas  must comply with 
the forestry regulations in force.  
4.24.   As stated in Decree No.  7.031/17, which regulates Article 42 of the Forestry Law 
No. 422/73, there are three types of natural forest/land areas in Paraguay: (a) productive, by 
managing which it is possib le to obtain an annual or periodic income; (b) protective (of 
watercourses, soils and some species of flora and fauna); and (c) special (for reasons of a 
scientific, educational, historical, touristic, experimental or recreational nature).13 In addition, 
there are the State -owned forest assets consisting of public forest lands, public forests and public 
nurseries.  
4.25.   The forests are exploited mainly to supply the domestic market with round wood, firewood 
and charcoal. In 2015, biomass accounted for 31.6% of the  energy generated in Paraguay and 
42.6% of the energy consumed. Firewood and charcoal constitute a significant proportion of the 
biomass produced and consumed in Paraguay. Firewood accounted for 55.7% of the biomass 
consumed and charcoal for 10.7%.14 
4.26.   The ex port of some forestry products is prohibited in order to increase the value added at 
domestic level and protect the domestic supply of raw materials. The prohibited export products 
include round wood, wood blocks and beams and sawn wood (with some exceptio ns) 
(section  3.2.3). Decree No.  7.636/11 of 7  November  2011 set up, for a period of five years, a 
special regime for the exploitation, transport and marketing of timber and other products from 
forest plantations established with fast -growing exotic or intr oduced species. Decree No.  4.443/15 
of 19 November  2015 extended this regime for a further five years.  
4.27.   Paraguay has been promoting a reforestation policy, in accordance with Law 
No. 4.241/2010 on the re -establishment of watercourse -protecting forests withi n the national 
territory and its implementing Regulations.15 The importance of promoting reforestation and 
sustainable forestry development is also stressed in several of Paraguay's strategies.16 However, 
according to the authorities, the efforts made in thi s respect have produced disappointing results 
due to factors such as deficiencies in institutional capacity, inadequate financial resources and a 
lack of incentives for forestation and reforestation. For example, reference is made to a shortage 
of forestry  products for use in the domestic wood industry and as sources of energy.17 In dealing 
with this situation, it has been considered appropriate to protect the forests by extending the ban 
on converting those in the eastern region to other uses up until Decem ber 2018.18 In addition, a 
                                                
11 Online information from the MIC, viewed at: http://www.mic. gov.py/mic/site/mic/ppt/Paraguay2.ppt . 
12 The INFONA's responsibilities are explained in Law No.  3.464/2008 establishing the National Forestry 
Institute. Online information from the INFONA, viewed at: 
http://www.infona.gov.py/application/files/8214/2902/5333/Ley_N_3464_ -_INFONA.pdf . 
13 Law No.  422/73 (Forestry Law). Online information viewed at: 
http://www.infona.gov.py/application/files/8414/2893/9388/Ley_N_422_Forestal.pdf . 
14 Vice-Ministry for Mines and Energy (2016), Balance Energético Nacional 2015,  Asunción, September. 
Viewed at: 
http://www.ssme.gov.py/vmme/pdf/balance2015/Balance%20Energetico%20Nacional%202015.pdf . 
15 The implementing Regulations of Law No.  4.241/10 may be viewed at:  
http://www.infona.gov.py/application/files/7214/2670/5616/Decreto_N_9824_Reglamenta_la_Ley_N . 
16 For example, the objective of Strategy 3.4 (Sustainability of the Global Habita t) of Paraguay's 
National Development Plan 2030 is to "increase the coverage of forest areas and protected biomass". Likewise, 
the Agricultural Strategic Framework (Chapter 3) has "promoting and accelerating the renewal, expansion, 
management and sustainab le development of the forests  …" as a general objective.  
17 Online information from INFONA, viewed at: http://www.infona.gov.py/index.php?cID=309 . 
18 Law No.  5.045/13 amending certain Articles of Law  No. 2.524/04. Online information from INFONA, 
viewed at: http://www.infona.gov.py/index.php?cID=309 . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  special regime has been established for exploiting, transporting and marketing timber and other 
products from forest plantations established with fast -growing exotic or introduced species.19 
4.28.   The authorities have also considered it appropriate to bolster the financing of commercial 
reforestation projects, provided by several financial institutions that operate with the AFD. Loans 
are granted for up to a maximum of US$1  million for projects already begun and US$500,000 for 
new project s. The whole of the project can be financed and the terms are for up to 12 years, with 
a 12-year grace period. The final interest rate is the AFD rate plus the margin of the corresponding 
financial intermediary.20 In addition, the B NF has a credit facility with own funds for reforestation 
for commercial purposes, which offers loans of up to 80% of the total cost of the investment 
project, with ceilings of US$500,000 for start -up forestry projects and US$1  million for projects 
already under way. The terms are  for up to 12 years for projects for producing timber and up to 
seven  years for projects for producing biomass and/or raw materials for agro -industry.  
4.1.3   Fishing  
4.29.   In 2016, fishing accounted for barely 0.1% of GDP. Fishing and aquaculture were 
established as pr iority activities within the framework of the rural development strategies in 
Paraguay's National Plan for the Development of a Sustainable Agriculture, which forms part of the 
Strategic Economic and Social Plan 2008 -2013. The general objective is to devel op aquaculture in 
the country by making sustainable use of its natural resources and integrating economic and 
productive activities so as to optimize the utilization of the factors of production. The main guiding 
principles of the national policy for the d evelopment of sustainable aquaculture in Paraguay are 
economic improvement, environmental and social responsibility and joint institutional 
responsibility.  
4.30.   The main pieces of legislation governing the fishing and aquaculture sector are Law 
No. 3.556/08 on fisheries and aquaculture and its implementing Regulations (Decree 
No. 6.523/11).21 The Law applies to catching, administration, transport, processing, marketing, 
preservation, regeneration of water resources, aquaculture and related activities and in each case 
establishes the registration and licensing requirements. The SEAM, MAG and SENACSA are the 
bodies responsible for its application. The SENACSA is tasked with authorizing imports and 
certifying exports of fishery products. In addition, Decree No.  6.523 /11 established the National 
Fishing and Aquaculture Council as an advisory body composed of representatives of the SEAM, 
the MAG, the SENACSA, the Office of the Attorney -General, the Naval Prefecture -General, the 
Commercial Fishermen's Association and pub lic universities.  
4.31.   The Law on fisheries prohibits the export of fishery products and their by -products, although 
the competent authority may permit it in exceptional circumstances and provided that an 
environmental impact study is carried out and not more t han 10% of the population of the species 
affected is exported. This prohibition does not apply to aquaculture products. Imports and exports 
of fish and fish products are low in value. In 2016, the value of fish exports was US$117,733. In 
the same year, the  value of imports was US$7.86  million, which is equivalent to 0.1% of the total 
value of goods imports.  
4.2  Mining and energy  
4.2.1   Mining  
4.32.   Paraguay has a small mining sector, with a 0.1% share of GDP in 2016, which employs 
0.1% of the occupied labour force. The lega l framework governing the mining sector is established 
by the Law No.  3.180/07 on mining of 2007, as amended by Law No.  4.296/11 and Law 
No. 4.935/13. The main intention of the changes introduced into the Law on mining was to grant 
                                                
19 Decree No.  7.636/11 imposes documentary and information requirements and the obligation to 
transport the timber through specific control points. The decree does not apply either to plantations established 
under Law No.  356/95 or to the transport and marketing of charcoal. Online information from the Senate. 
Viewed at: http://digesto.senado.gov.py/ups/leyes/7794.pdf . The period for which this Law remains in force 
was extended by Decree No.  4433/2015.  
20 Online information from the AFD, viewed at: https://afd.gov.py/proforestal -p10. 
21 Official Journal, online information viewed at: 
http://www.gacetaoficial.gov.py/index/getDocumento/15440 . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  the investing companies greater concessions, such as a reduction in the minimum investment 
percentage required for each phase of the mining activity and an increase in the area authorized 
for prospection, exploration or exploitation.  
4.33.   The Law on mining stipulates that all mineral resources in the natural state, with the 
exception of rocky, earthy and calcareous substances, are the property of the State. The Ministry 
of Public Works (MOPC) is given the authority to regulate mining prospection, exploration and 
exploitation activities . In general, mining is open to foreign investment. Foreign natural persons 
must establish domicile in Paraguay or appoint a resident representative in order to become 
holders of mining rights, while foreign companies must comply with the provisions of the  Civil 
Code and other domestic laws. Small -scale mining to exploit gold, minerals and precious stones is 
reserved for Paraguayan nationals, the right to exploit is granted for a maximum period of 
ten years and mining activities are restricted to a physical  area of ten hectares. Prospection and 
exploration permits are granted by the MOPC22 and exploitation concessions are authorized by the 
National Congress. The Law also provides for the possible granting of prospection, exploration and 
exploitation or explor ation and exploitation concessions.  
4.34.   The royalties and taxes payable for engaging in mining are laid down in the Law on mining. 
The annual income from these sources during the period 2011 -2016 fluctuated between 
₲2,387  million and ₲9,670  million. The State is not the owner, in part or in whole, of any of the 
mining companies with a prospection, exploration or exploitation permit or concession. In 2017, 
three companies were engaged in exploitation activities under a concession: Transandes Paraguay 
S.A., a Par aguayan company with a concession to explore for and exploit uranium; Latin American 
Minerals S.A., a Canadian company with a concession to explore for and exploit gold; and 
Darmatal S.A., a Chilean company, which has a concession to explore for and exploi t iron.  
4.35.   In 2016, the total value of mining exports was US$63.74  million (0.8% of total Paraguayan 
goods exports), 95% of which corresponded to exports of gold. Gold exports have almost doubled 
since 2012. The total value of mining imports in 2016 was US$61 .62 million (0.6% of the total 
value of Paraguayan goods imports). The principal import product was salt.  
4.2.2   Energy sector  
4.2.2.1   General features  
4.36.   Electricity and water supplies accounted for 4% of GDP in 2016. In the same year, the 
electricity, gas and water sector s employed 0.5% of the active population. Paraguay is one of the 
world's largest producers and exporters of hydro -electric energy. In 2015, electricity production 
was 55,744.2 GWh, mainly generated by the Itaipú and Yacyretá hydro -electric power stations, 
which Paraguay co -owns with Brazil and Argentina, respectively. Under the agreements concluded 
with these countries, which date back to 1973, the energy generated by the power stations is 
divided equally between the parties.  
4.37.   In 2015, hydro -electricity acco unted for 68.4% of total energy production, and biomass for 
31.6%. That same year, 74% (41,126.7 GWh) of Paraguay's total energy production was 
exported, mainly to Argentina and Brazil under the bilateral agreements. Paraguay imports all its 
petroleum prod ucts (Chart 4.5). In 2015, hydrocarbons accounted for 39% of the country's energy 
consumption. Other sources of energy for domestic consumption are biomass (42.6%) and 
electricity (18.4%).23 In 2017, some 98.9% of the country's population had access to elec tricity.  
                                                
22 Prospection permits are gra nted for one year (with the possibility of a six -month extension) and each 
permit can cover a maximum area of 100,000 hectares. Exploration permits are granted for two years (with a 
one-year extension) and can be obtained for a maximum area of 50,000 hecta res. 
23 Vice-Ministry of Mines and Energy (2016), Balance Energético Nacional 2015,  Asunción, September. 
Viewed at: 
http://www.ssme.gov.py/vmme/pdf/balance 2015/Balance%20Energetico%20Nacional%202015.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Chart 4.5 Energy imports and exports compared, 2015  
ktoe 
01,0002,0003,0004,000
Imports ExportsDiesel
Other petroleum
productsElectricity
Charcoal1,664.5
 
Source:  Vice-Ministry of Mines and Energy (2016), Balance Energético Nacional 2015 , Asunción, September. 
Viewed at: 
http://www.ssme.gov.py/vmme/pdf/balance2015/Balance%20Energetico%20Nacional%202015.pdf . 
4.38.   The Vice -Ministry of Mines and Energy (VMME) and the MOPC are responsible for 
formulating policy relating to energy resources and overseeing their appropriate use, as well as for 
acting as the regulatory authority for the natural gas subsector. The Ministry of Foreign Affairs and 
the MOPC coordinate their action in implementation of the Paragua yan Government's international 
and energy policy with respect to the Treaties of Itaipú and Yacyretá and the binational entities 
established by the respective treaties, in conformity with Article 1 of Decree No.  10.093/12 of 
21 November  2012. The importing , distribution, transport and marketing of petroleum products 
are regulated by the MIC.  
4.39.   The State continues to play a preponderant role in the management of the energy sector 
through two State -owned enterprises the National Electricity Authority (ANDE) and  Petróleos 
Paraguayos (PETROPAR). During the review period, two institutional changes were made in the 
energy sector: the creation of a National Energy Efficiency Committee (CNEE) in 2011 and of a 
Radiological and Nuclear Regulatory Authority (ARRN) in 201 4. 
4.40.   The purpose of the CNEE, as stipulated in Decree No.  6.377/11, is to concentrate efforts to 
support projects or initiatives aimed at making rational and efficient use of energy. The CNEE is 
composed of representatives of 11 different institutions24, is c oordinated by the Vice -Ministry of 
Mines and Energy and reports on its work to the Government. The CNEE is responsible for 
preparing and implementing the National Energy Efficiency Plan of the Republic of Paraguay 
presented in July  2015. This Plan lays dow n five strategic priorities to be pursued by means of 
specific measures and programmes depending on the sector: political measures; education, 
awareness -raising and training; implementation programmes for the efficient and rational use of 
energy; energy -related diagnostic studies and audits; and maintainability and sustainability 
measures.25 
4.41.   The Radiological and Nuclear Regulatory Authority (ARRN) was established by Decree 
No. 5.169/2014, which permits the peaceful and beneficial use of ionizing radiation an d provides 
for the establishment of an appropriate regulatory control system. The ARRN is responsible, 
among other things, for establishing standards in the field, regulating and monitoring the relevant 
activities and practices in the national territory, a s well as measures relating to the safety of 
radioactive sources, and for ensuring the safe management of radioactive waste. In 2015, the 
                                                
24 These institutions are: the MOPC, the Ministry of Education and Culture (MEC), the MIC, the ANDE, 
PETROPAR, the INTN, the Yacyretá Binational Entity (EBY), Itaipú Binational, the CONACYT, the National 
University of Asunción (UNA), the SEAM and the INFONA.  
25 MOPC (2014), Plan Nacional de Eficiencia Energética de la República de Paraguay . Viewed at: 
http://www.ssme.g ov.py/vmme/index.php?option=com_content&view=article&id=1733 . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  ARRN ratified the Amendment to the Convention on the Physical Protection of Nuclear Materials. 
The authorities have co nfirmed that Paraguay does not have any nuclear installations and that 
there are no plans to build any such installations in the future.  
4.42.   The objectives of the energy sector are set out in the National Plan Paraguay 2030 
(section  2), which aims to increase renewable energy consumption by 60% and reduce fossil fuel 
consumption by 20%. The Energy Policy of the Republic of Paraguay, as approved by Decree 
No. 6.092/2016, establishes five higher strategic objectives (Box 4.1), together with other specific 
objecti ves and an action plan.  
Box 4.1 National energy sector – principal objectives  
(1) To guarantee energy security, on the basis of criteria of self -sufficiency, efficiency and minimum cost, 
together with socio -environmental responsibility, that contributes to the country's productive development.  
(2) To ensure that the entire population has access to high -quality energy, taking account of consumer rights.  
(3) To use domestic energy sources, such as hydro -electricity , bio-energies and other alternative sources, and 
to encourage the production of hydrocarbons as strategic resources for reducing external dependence and 
increasing the generation of greater domestic value added.  
(4) To strengthen Paraguay as a pole for re gional energy integration on the basis of the sustainable 
development of its natural resources and its strategic geographical location.  
(5) To promote among the population an understanding of the importance of energy and its sustainable use as 
a factor in overall development.  
Note:  The Decree refers to "higher objectives".  
Source:  Energy Policy of the Republic of Paraguay. Viewed at: http://www.ssme.gov.py . 
4.2.2.2   Electricity  
4.43.   Less than 16% of Paraguay's electricity generati ng capacity (some 60,000 GWh/year) is 
used in the domestic electricity market. Electricity, almost exclusively hydro -electrically generated, 
is an important export to the countries that are partners in the binational hydroelectric power 
stations of Itaipú (14,000 MW, shared equally between Paraguay and Brazil) and Yacyretá 
(3,200  MW, again shared equally between Paraguay and Argentina).  
4.44.   In addition to the binational power stations, the ANDE owns the hydro -electric power station 
of Acaray, situated in the ea st of Paraguay, with a capacity of 210 MW, as well as small thermal 
generating capacities, which altogether total 6.1 MW.  
4.45.   The main domestic electricity company is the ANDE, a vertically integrated State -owned 
enterprise that participates in the generation,  transmission, distribution and marketing of 
electricity in Paraguay. The sector's other two State -owned enterprises are legally binational, since 
they operate the hydro -electric power stations of Itaipú (Paraguay/Brazil) and Yacyretá 
(Paraguay/Argentina),  in both of which Paraguay holds 50% of the share capital, through the 
ANDE. Private sector participation is limited and restricted to the private company CLYFSA 
(Compañía de Luz y Fuerza S.A.), a distributor operating in Villarrica, which purchases electr icity in 
bulk from the ANDE and has a relatively insignificant share of the domestic electricity market, and 
the Cooperativa Menonita del Chaco.26 
4.46.   The principal legal instrument governing the electricity sector is Law No.  966/64, which 
established the ANDE as an autonomous entity and granted it exclusive control of electricity 
transmission, distribution and marketing. The main objectives of electricity subsector policy 
established in the National Energy Efficiency Plan are focused on the quality of the servi ce, the 
security of the supply, electricity's participation in the generation of value added, and universal 
access.  
4.47.   Law No.  3.009/06 on independent electricity generation and transport (PTIEE) 
(as implemented by Decree No.  9.829/12) defines the national po licies in the area. Under the Law, 
the co -generation and self -generation and/or transport of electricity are activities which may be 
engaged in by natural persons domiciled in the country or by legal persons established under 
                                                
26 Online information from the MOPC. Viewed at: 
http://www.ssme.gov.py/vmme/index.php?option=com_con tent&view=article&id=1216& . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  Paraguayan law. The National B oard for Independent Power Generation and Transport (CONAPTIE) 
is the body responsible for granting licences and approving and monitoring projects, as well as for 
the administrative settlement of disputes. Licences may be granted for all the activities cov ered by 
the Law, except for water -powered generation in excess of 2 MW. The Law guarantees free and 
non-discriminatory access to the ANDE's transport facilities and/or those of the independent 
transporter, as appropriate, subject to the payment of a toll. The Law provides for disputes that 
cannot be resolved by CONAPTIE to be submitted to international arbitration. There are no 
restrictions on foreign capital in power generation and transport. According to the authorities, 
several private companies have exp ressed interest in electricity generation, but as of June  2017 
that interest had not yet led to any concrete results.  
4.48.   In 2013, a draft Law on the regulatory framework for electricity was indefinitely postponed 
by Parliament, which wanted to make a closer s tudy of its implications. The draft Law sought to 
promote modernization and competition in the sector through the participation of private 
investment in the generation, transport and distribution of electricity by means of a system of 
concessions. In addit ion, it envisaged the establishment of a wholesale market and a new 
regulatory body for the sector, independent of the ANDE. In 2017, a new draft proposing the 
establishment of a regulatory framework for the electricity sector that would promote competitio n 
in the market was being studied. The draft envisages the creation of a regulatory agency 
responsible for overseeing the activities of the electricity sector, granting licences, enforcing the 
regulations and protecting the interests of the users by regula ting the quality standards of the 
electricity supply service.27 
4.49.   Paraguay ranks 102nd out of 190 economies in the "getting electricity" subcategory of the 
World Bank's Doing Business  Report (2017), which suggests that there is room to reduce costs and 
improv e procedures and supply.28 As indicated in Paraguay's last TPR, technical and non -technical 
losses are significant: in 2015, they amounted to 25% of production.29 Within the context of the 
National Energy Efficiency Plan, a series of measures for dealing wit h this problem have been 
identified, such as the preparation of loss reduction plans.30 The possibility of encouraging 
infrastructure development by setting up an institution (the National Economic and Social 
Infrastructure Bank) to channel resources into t he sector has also been envisaged. In addition, the 
ANDE has drawn up plans for managing demand and promoting the use of electricity on the basis 
of energy security.  
4.50.   Under Law No.  966/64, the ANDE must determine the tariffs for the supply of electricity to  
the end user in such a way that the resulting income enables it to cover its operating costs and 
make a reasonable profit, in order to be able to pay its debts and expand its services. The tariffs 
must ensure that the company's net annual income is not le ss than 8% and not more than 10% of 
the value of the physical and intangible property and the working capital needed to operate. The 
tariffs must be approved by the Government through the MOPC, on the advice of the National 
Economic Team. There was no chan ge in the average tariffs between 2011 and 2016; industrial 
activities benefit from the lowest tariffs (Table 4.3) . According to the Paraguayan authorities, the 
cost of electricity is one of the lowest in the region.31 
Table 4.3 Average electricity tariffs, 2010 -2016  
(G/kWh)  
 2010  2011 -2016  
Residential  352.9 362.0 
Commercial  339.1 343.2 
Industrial  229.9 241.1 
                                                
27 Online information viewed at: https://www.competitionpolicyinternational.com/p araguay -nuevo -
marco -regulatorio -para-electricidad -evitar -oligopolio -privado -la-meta. 
28 World Bank (2017), Doing Business 2017 , Equal Opportunity for All, Washington. Online information 
viewed at: http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -
Reports/English/DB17 -Report.pdf . 
29 Vice-Ministry of Mines and Energy (2016), Balance Energético Nacional 2015, Asunción, Se ptember. 
Viewed at: 
http://www.ssme.gov.py/vmme/pdf/balance2015/Balance%20Energetico%20Nacional%202015.pdf . 
30 The objectives are to reduce the equivalent  frequency of the interruptions to 11% and total losses in 
the distribution network to 12% over the medium term, and to reduce non -technical losses by 10% in the 
short term and 25% in the long term.  
31 Online information from the MIC, viewed at: http://www.mic.gov.py/mic/site/mic/ppt/Paraguay2.ppt . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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   2010  2011 -2016  
General  290.1 273.7 
Governmental  202.6 262.2 
Street lighting  401.0 376.9 
Source:  ANDE. Viewed at : http://www.ande.gov.py ; and information provided by the authorities.  
4.51.   The ANDE applies preferential tariffs for supplying electricity to electro -intensive industries 
(EIIs) and low -income residential users ("social t ariff"). The tariff structure for supplying EIIs, for 
modulations of up to 50% of the total contracted power32 at peak load hours of the National 
Interconnected System (SIN), includes: (a) the price of the energy associated with the contracted 
power in US$/ MWh-month; and (b) the price of the energy associated with the excess contracted 
power in US$/MWh. For modulations greater than 50%, the tariff is associated with the contracted 
power in accordance with a monthly load factor of 60%, with the number of hour s in the month 
taken into account. With regard to the social tariff, in 2011, a Permanent Inter -Institutional 
Commission for the Social Tariff (CIPTS) was established to ensure that the subsidy exclusively 
serves the public purpose (Decree No.  6.474/11).33 
4.2.3   Hydrocarbons and biofuels  
4.52.   Law No.  799/95 on hydrocarbons establishes, inter alia , the procedures and requirements 
for prospecting, exploring and exploiting hydrocarbons and the related income taxes, royalties and 
fees. Law No.  3.257/07 establishes a regula tory framework for natural gas which regulates the 
transport, distribution, trading and marketing of natural and other combustible gases. Law 
No. 2.748/05 on the promotion of biofuel and its implementing Regulations (Decree No.  3.667/09) 
establish tax ince ntives for promoting the production of biofuels. The MIC is the agency 
responsible for regulating the import, distribution, transport and marketing of petroleum products.  
4.53.   The main objectives of the hydrocarbons subsector, as established by the National Ene rgy 
Efficiency Plan, are to guarantee supplies and promote domestic production. With respect to the 
bioenergy subsector, the priorities are to help to promote the use of bioenergy and other 
alternative sources, in the interests of energy security, and to p romote the development and 
diversification of domestic sources.  
4.54.   PETROPAR, a company established by Decree No.  22.165/81 of 8  January  1981 and owned 
by the Paraguayan State, continues to play an important role in the hydrocarbons sector. It 
imports and mark ets hydrocarbons and their derivatives and also operates the country's only 
refinery and an absolute -alcohol production plant. In 2016, PETROPAR took a 35% share of the 
diesel imports market and a 17% share in the case of gasoline imports.  
4.55.   PETROPAR's missi on is to supply hydrocarbons and biofuels in order to satisfy the 
requirements of the domestic market, while also prioritizing concern for the environment. Its main 
activities include: the production of petroleum and its products; the marketing, transport and 
distribution of hydrocarbons and their derivatives; the prospection and exploitation of petroleum 
deposits; and retail sales.34 PETROPAR does not have a monopoly on these activities. The 
hydrocarbons supplied by PETROPAR come from wholesale purchases ab road and biofuel (ethanol) 
from the sugarcane extraction process in its Mauricio José Troche (Guairá) plant. PETROPAR 
obtains supplies of petroleum products under supply contracts with companies that operate on the 
international market, via direct purchase s or reverse auctions conducted electronically through the 
Directorate -General of Government Procurement.35 
4.56.   Private direct investment, both domestic and foreign, is permitted in all the phases of 
hydrocarbon prospection, exploration and exploitation. To eng age in exploitation , foreign 
                                                
32 The energy to be dispatched is classified in five modulation bands: from 0% to 25%; from 26% to 
50%; from 51% to 60%; from 61% to 80%; and fro m 81% to 100% of the total contracted power for EIIs, for 
a three -hour period, in the peak load hours of the National Interconnected System (SIN).  
33 Decree No.  6.747/11 of 20  April 2011. Online information viewed at: 
www.ande.gov.py/informacion/documentos/16/decreto_6474_2011_tarifa_social.pdf . 
34 Online information from PETROPAR, viewed at: http://www.petropar.gov.py/index.php/about -
joomla/mision . 
35 Online information from PETROPAR, viewed at: http://www.petropar.gov.py/index.php/about -
joomla/como -funciona . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  companies must be domiciled in Paraguay and appoint a legal representative in the country. 
Concession -holders must sell a proportion of their production to the State, as determined annually 
by the MOPC and the MIC.36 The rest of  their production can be refined, stored, transported or 
exported.  
4.57.   Public or private fuel distributors authorized by the MIC may import and market fuels 
derived from petroleum. Companies that import some types of gasoline must obtain a licence from 
the MIC  and are subject to import quotas (see below). The price at which gasoline is sold to the 
public can be freely set.37 Two types of diesel, type I and type III, are marketed and a reference 
price is set for type III. In 2015, the importing and marketing of t ype II diesel was prohibited, in 
order to standardize the product and improve the quality of the fuel by reducing the sulphur 
content.38 
4.58.   During the review period, Paraguay intensified its efforts to promote the use of 
absolute -alcohol and fuel -alcohol vehic les with a view to encouraging the production of traditional 
agricultural crops such as sugarcane, while reducing greenhouse gases that contribute to climate 
change.39 Law No.  5.444/15 requires companies that sell gasoline to offer access within the 
nationa l territory to pumps supplying at least 85 -octane Flex fuel, consisting of 85% absolute 
alcohol and 15% gasoline.40 Moreover, less than 97 -octane gasolines will have to be mixed with a 
maximum of 25% anhydrous ethanol. The Law states that the Government mus t implement tariff 
measures that incentivize the import of Flex -type vehicles. In this connection, Decree 
No. 3.667/09 (zero tariff on imported Flex -fuel vehicles) and Customs Resolution No.  82/16 
(to access the customs duty established in Decree No.  3.667 /09) were implemented. Moreover, 
vehicle and motorcycle assembly companies established in Paraguay must equip production lines 
for units with Flex -fuel engines and State agencies and entities that purchase light and utility 
vehicles must include a minimum of 30% of vehicles that use Flex -fuel.41 
4.59.   In 2015, in order to promote the use of biofuels, a reference price for marketing type I 
biodiesel (₲5,000 per litre) was established.42 In the same year, it was made compulsory for 
biodiesel to be mixed with gas oil types II and III.43 In 2016, a maximum re tail price was fixed for 
gas oil/diesel type III ( ₲4,290 as from 1  February  2016).44 PETROPAR's invoice price (ex -plant 
sales price) for gas -oil/diesel type III is fixed by government authorization.45 In 2016, the retail 
price was reduced to ₲4,290.46 Later, in the same year, the price was further reduced to ₲4,190.47 
4.60.   In 2015, a licensing system was established for importers of gas oil C (Type III), virgin 
naphtha and gasoline up to 85 octane. Provision was made for PETROPAR to be exclusively 
responsible for a minimum of 50% of imports of these products (Decree No.  2.999/15, as 
amended by Decree No.  3.324/15)48, with quantification based on the average total imports of 
                                                
36 WTO document WT/TPR/S/245/Rev.1 of 16  May 2011.  
37 Decree No.  10.183/00 authorizing Petróleos Paraguayos (PETROPAR) and authorized fuel distributors 
to freely market all types of gasoline.  
38 MIC Decree No.  2.999/15. Viewed at: http://www.gacetaoficial.gov.py/index/getDocumento/24772 ; 
as amended by MIC Decree No.  3324/15. Viewed at: 
http://www.gacetaoficial.gov.py/i ndex/getDocumento/26701 . 
39 MIC Resolution No.  425/08 establishes the percentage mix (24%) of absolute ethanol with leadless 
gasolines RON 85 and RON 95.  
40 The Law stipulates that the companies must have at least two pumps for every ten authorized service 
stations.  
41 Law No.  5.444/15 on Promotion of the Consumption of Absolute Alcohol and Fuel Alcohol. Viewed at: 
http://www.mic.gov.py/mic/site/mic/pdf/Ley5444 -15.pdf . 
42 MIC Resolution No.  833/15. Viewed at: http://www.mic.gov.py/mic/site/mic/pdf/NOTA_DGCN402 -
2015.pdf . 
43 MIC Resolution No.  367/15.  
44 Decree No.  4.823/16 of 28  January  2016. Online information viewed a t: 
http://www.gacetaoficial.gov.py/index/getDocumento/32346 . 
45 Decree No.  10.724/13. Online information viewed at: 
http://www.gacetaoficial.gov.py/index/getDocumento/3585 . 
46 Decree No.  4.823/16 of 28  January  2016 amending Article 1 of Decree No.  4.692/15 fixing the retail 
price of gas oil/diesel type III (Type C).  
47 Decree No.  6.128/16 of 21  October  2016.  
48 Decree  No. 2.999/15 and MIC Resolution No.  1.067/15 of 17  September  2015. Viewed at: 
http://www.mic.gov.py/mic/site/mic/informes_decretos.php . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  these products over the previous three years.49 The reason for this measure was to guarantee 
domestic stocks of gas oil type III (which is PETROPAR's responsibili ty) and facilitate access to 
85 octane gasolines.  
4.3  Manufacturing sector  
4.61.   Paraguay's manufacturing sector is relatively small, its share of GDP being 10.6% in 2016 
and its contribution to emplo yment (together with mining and quarrying) 12.3% in 2015. There 
was no change in the structure of manufacturing GDP during the review period50 and it continues 
to be dominated by the processing of agricultural raw materials (Chart 4.6).  
4.62.   According to the Nat ional Development Plan 2030, the challenges facing the sector include 
the narrowness of the local market, the greater competitiveness of manufactured products 
imported from abroad and the illegal entry of manufactured goods. The Plan lists the priorities f or 
the sector, such as: diversification, with emphasis on the technological and industrial aspects; 
support for the emergence of new manufacturing hubs in each region; the development of a 
national innovation system; the expansion of the agro -industrial ba se; the development of a policy 
of industrial integration and complementarity within MERCOSUR; the establishment of long -term 
financing facilities for the development of the sector; support for micro, small and medium -sized 
enterprises; and the establishme nt of industrial parks.  
Chart 4.6 Structure of manufacturing sector GDP, 2015  
(%) 
Meat production,  
22% 
Oil processing, 5% 
Dairy products, 2% 
Milling industry and 
bakery products, 3% 
Sugar, 1% 
Other foods, 2% 
Beverages and 
tobacco, 14% Textiles and clothing,  
15% Leath and footwear,  
3% Wood industries, 3% Paper and paper 
products, 4% Chemical products,  
5% Non-metallic product 
manufacturing, 9% Base metal 
production, 3% Manufacturing of 
machinery and 
equipment, 4% Other manufactured 
products, 6% 
 
Source:  Information provided by the Paraguayan authorities.  
4.63.    In May  2017, the MIC was preparing an industrial development pla n to exploit comparative 
advantages which should enable Paraguay to diversify industrially in the medium and long term. 
According to the authorities, the specific objectives of the Plan will be to identify Paraguay's latent 
comparative advantages, to devel op value chain integration policies and to identify educational 
policies aimed at supplementing the industrial policies suggested.  
4.64.   The average MFN tariff applied to non -agricultural products (WTO definition) in 2017 was 
8.2%, as compared with a general ave rage of 8.4%. The manufactured products with 
                                                
49 MIC Resolution No.  499/15 of 27  May 2015. Vi ewed at: 
http://www.mic.gov.py/mic/site/mic/pdf/resolucion499.pdf ; and MIC Resolution No.  430, of 13  April 2016.  
50 The only changes in the share of GDP for the respective product cate gories were an increase in 
textiles and clothing (from 14% in 2011 to 15% in 2015) and oil processing (from 4% in 2011 to 5% in 2015), 
and a decrease in the share of beverages and tobacco (from 17% in 2011 to 14% in 2015) and the 
manufacturing of machinery  and equipment (from 5% in 2011 to 4% in 2015).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  above -average MFN tariffs include: clothing (20.5%); textiles (15.9%); leather and rubber 
articles, footwear and travel articles (12.4%); fish and fish products (10.1%); wood, wood pulp, 
paper and furniture (9.9 %); and mineral products and metals (9.4%) (Table 3.6). In terms of the 
ISIC classification, the average manufacturing sector MFN tariff in 2017 was 8.5%.  
4.65.   The manufacturing industries, like other sectors, are eligible for the tax and other incentives 
available under the following regimes: (a) the free zone regime (section 3.2.4.4); (b) the maquila 
regime (section 3.2.4.5); (c) Law No.  60/90 (section 3.3.1.2.2); (d) the Law on investment 
guarantees, the promotion of job creation, and economic and social deve lopment 
(section  3.3.1.2.4); (e) the raw materials import regime (section 3.3.1.2.5); (f) the automotive 
regime (section 3.1. 4.3) and the regime for promoting the production and development of 
high-technology goods (section 3.3.1.2.7); and (g) the Law on i ndustrial parks (section 3.3.2).  
4.4  Services  
4.4.1   Financial services  
4.66.   In 2016, the financial services sector accounted for 6.3% of domestic value added, as 
compared with 5% in 2011, and employed 4.5% of the total labour force (Table  1.1). In real 
terms, the sector grew at an annual average rate of 10.1% between 2011 and 2016, much faster 
than GDP.  
4.67.   In May  2017, the financial sector consisted of 16 commercial banks, 2 development banks 
(the National Development Bank and the Development Finance Agency, which is a secon d-tier 
bank), 9 finance companies, 30 exchange brokers, 4 public bonded warehouses51, 3 sectoral 
financial entities52 and 36 insurance companies.53 There were also 58 cooperative societies and 11 
pension fund managers (8 public and 3 private).  
4.4.1.1   Banking service s and other financial institutions  
4.4.1.1.1   Market structure  
4.68.   At the end of December  2016, the assets of the banks operating in Paraguay amounted to 
₲109,306,498  million (US$19,873  million)54, equivalent to 72.6% of GDP. Since 2011, when they 
represented 51.3% of GDP , bank assets have expanded by more than 100%. In February  2017, 
bank deposits amounted to ₲78,773,083 (US$14,322  million), some 52% of GDP. On the same 
date, loans amounted to ₲68,326,968  million (US$12,430  million or 45% of GDP).55 For their part, 
also on  the same date, the finance companies held ₲4,576,562  million in assets and 
₲3,289,469  million in deposits (US$832  million and US$598 million, respectively).56 
4.69.   Three types of banks operate in Paraguay, classified according to the origin of their capital 
as follows: (a) majority locally -owned, i.e. with Paraguayan majority participation57; (b) direct 
foreign branches, which are fully foreign -owned58; and (c) subsidiaries with majority foreign 
                                                
51 Public bonded warehouses are entities whose purpose is to store, preserve, manage and control 
goods for the account of third parties and to issue certificates and warrants.  
52 The Bank Employees Retirement a nd Pensions Fund, the Livestock Fund and the Agricultural 
Equipment Bank.  
53 Information from the Central Bank of Paraguay. Viewed at: 
https://www.bcp.gov.py/boletines -estadisticos -i62. 
54 At the exchange rat e on 30  April 2017 (₲5,500 = US$1).  
55 Central Bank of Paraguay (2017), Boletines Estadísticos, Bancos, February  2017. Viewed at: 
https://www.bcp.gov.py/userfiles/files/1_BOLB%200220 17.xls . 
56 Central Bank of Paraguay (2017), Boletines Estadísticos, Financieras, February  2017. Viewed at: 
https://www.bcp.gov.py/userfiles/files/2_BOLF%20022017.xls . 
57 In February  2017, nine majority locally owned banks were operat ing: Banco Regional S.A., 
Banco  Amambay S.A., Banco Continental S.A.E.C.A., Visión Banco S.A.E.C.A., Banco Ita púa S.A.E.C.A., 
Banco  Familiar S.A.E.C.A., Banco Atlas S.A., Banco para la Comercialización y Producción S.A. (Bancop S.A.), 
and Grupo Internacional de Finanzas S.A.E.C.A. (INTERFISA BANCO).  
58 In February  2017, three wholly foreign -owned banks were operating: Citibank N.A., Banco Do Brasil 
S.A. and Banco de la Nación Argentina.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  participation, in which a majority of the capital is foreign -owned.59 In addition to these entities, the 
National Development Bank (BNF), with State participation, also forms part of the banking system. 
Foreign capital continues to maintain a substantial presence in the Paraguayan banking sector. In 
February  2017, direct for eign branches and majority foreign -owned banks held 55.5% of bank 
assets and 52.2% of deposits, while the majority locally -owned banks held 37.7% of assets and 
40.4% of deposits.60 
4.70.   In February  2017, the four largest banks (two of them majority foreign -owned ) controlled 
57.8% of total bank assets. These banks were: Banco Continental; Banco Itaú Paraguay; 
Banco  Regional S.A.; and Banco Bilbao Vizcaya Argentaria Paraguay S.A. Also in February  2017, 
the Paraguayan banking system had 546 branches, 1,156 ATMs, 2,0 95 non -banking 
correspondents, and 267 self -service terminals, employing a total of 10,338 people.61 
4.71.   Paraguay's macro economic stability continued to contribute to the increase in private sector 
deposits and loans during the review period. Deposits, in both domestic and foreign currency, 
recorded sustained growth, doubling between 2011 and 2016. In February  2017, the banks' loan 
portfolio amounted to ₲68,326,968  million made up as follows: agriculture (18.5%), trade 
(21.9%), financial sector (1.6%), housing (3.5%), services (3.8%), livestock (11.7%), 
construction (2.4%), consumption (13.1%), and industry (7.7%).62 
4.72.   Bank deposits still reveal a certain de gree of dollarization of the Paraguayan banking 
system. The share of domestic -currency bank deposits in the private banks amounted to 52.3% in 
February  2017, while foreign -currency deposits accounted for 47.7% of the total. In the case of 
the BNF, these pe rcentages were 67.1% and 32.9%, respectively. For the banking system as a 
whole, the proportions are 53.5% and 46.5%, respectively.  
4.73.   The authorities have stressed that the Paraguayan banking system has appropriate solvency 
and financial soundness indicators  and that the banks have a good level of capitalization. In 
February  2017, the banking system had a solvency ratio, defined as net worth/total assets and 
contingency reserves (Basel pillar I), of 10.59%, which is higher than the regulatory 8%, as well 
as liquid assets equivalent to 35.89% of the total. Similarly, the banking system as a whole had an 
ROA profitability ratio (income /total assets) of  1.95% and an ROE financial profitability ratio 
(net income before tax/shareholders' equity) of 17.48%. The deli nquency rate of the banks' loan 
portfolio has remained low at 3.25%.  
4.74.   Deposits in banks and financial entities are insured up to a certain limit through the Deposit 
Guarantee Fund (FGD), established by Law No.  2.334/03 of 12  December  2003. The FGC is a 
mand atory regime, set up with public and private financing, for partially protecting the public's 
savings in private financial entities authorized to operate by the BCP. The guarantee of up to 
75 minimum wages, i.e. up to ₲147,338,025 in May  2017 (US$26,790), applies per natural or 
legal person per financial entity. The FGD is administered and recorded separately by the BCP and 
does not form part of its assets. It covers current accounts, together with demand savings 
deposi ts and certificates of deposit in domestic or foreign currency, made by any natural or legal 
person, whether Paraguayan or foreign, held by entities supervised by the BCP's Banking 
Supervisory Authority. Where several kinds of accounts are held in the same  entity, the different 
deposits are added together.63 
4.75.   During the review period, the banking spread, i.e. the difference between deposit rates and 
lending rates in local and foreign currency, continued to decrease. In February  2017, the 
difference between th e average main deposit and lending rates in local currency was 
                                                
59 In February  2017, four partially foreign -owned banks were operating: Sudameris Bank S.A.E.C.A., 
Banco Bilbao Vizcaya Argentaria Paraguay S.A., Banco Itaú Paraguay S.A., and Banco GNB Paraguay S.A.  
60 Central Bank of Paraguay (2017), Boletines Estadísticos, Bancos , February  2017. Viewed at: 
https://www.bcp.gov.py/userfiles/files/1_BOLB%20022017.xls . 
61 Idem.  
62 Idem.  
63 Online information from the BCP, viewed at: https://www.bcp.gov.py/informacion -institucional -i92. WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  12.8 percentage points.64 On the same date, the foreign currency spread was 8.85 percentage 
points.65 
4.76.   The BNF is a first -tier development bank that provides banking services and conducts 
banking operations, including foreign trade operations, nationwide. The authorities have pointed 
out that, although State -owned, the BNF competes on equal terms with commercial banking, is 
regulated in the same way and subject to the same prudential rules as the p rivate banks, and 
grants loans at market rates.  
4.77.   The Financial Development Agency (AFD) operates as a second -tier public bank, channelling 
long-term loans from multilateral international financial institutions to local banks and other 
financial entities, pa rticularly in the areas of mortgage lending and loans for SMEs and the 
agricultural sector. At the end of June  2016, the AFD's performing loan portfolio amounted to 
₲2,655  million (US$475  million).66 
4.78.   In addition to the financial entities already mentioned, the cooperative societies offer 
services such as micro -loans and small -business financing. The cooperatives are authorized to 
grant producer and consumer loans, as w ell as to take savings deposited by the public. The 
regulatory framework for the cooperatives is established by Resolution No.  15.743/16 approving 
the regulatory framework for cooperative associations. In May  2017, the main type A cooperatives, 
i.e. those with assets in excess of ₲50,000  million, which represent around 90% of the total, were 
holding assets worth nearly ₲24.33  billion (some US$4,218  million). Out of this group of 
cooperatives, 38 belong to the savings and loan sector and the other 20 to the production sector. 
In May  2017, the savings and loan cooperatives held 54% of total assets, while the production 
cooperatives held 46%.67 The principal source of financing for the savings and loan cooperatives is 
the savings of their members, which account for some 90% of the total , whereas for the 
production cooperatives the sources of financing are divided between the savings of their members 
(39%), debts with financial entities and other cooperatives (36%) and non -financial debts (25%).  
4.79.   The National Cooperative Institute (INCOOP) , established by Law No.  2.157/03 which 
establishes its charter and regulates the way in which it operates, is the authority that applies the 
cooperative legislation and the regulatory authority for cooperative entities. Currently, there are 
1,024 cooperat ives of different classes and types (specialized and multipurpose). According to 
INCOOP, the cooperative sector has a 17% share of the loans issued by the financial system as a 
whole and, at the end of 2016, had 1.5  million members.  
4.4.1.2   Regulatory framework  
4.80.   The BCP is responsible for establishing the regulatory framework for the financial sector and 
for overseeing its stability. The Banking Supervisory Authority (SB), under the BCP, supervises the 
financial entities that make up the sector (banks and finance co mpanies), with the exception of the 
cooperatives, which are overseen by INCOOP.  
4.81.   The main legal instrument governing the financial sector is still Law No.  861/96 or the 
General Law on Banks, Finance Companies and Other Credit Institutions and its recent 
amendment, Law No.  5787/16. The General Law on Banks contains rules on licences and for the 
management, operation and closing down of financial entities, as well as for the protection of the 
financial system as a whole. Law No.  861/96 and its amendments incor porate the Basel provisions 
on the supervision of banks and minimum capital requirements. During the review period, the 
Paraguayan banking legislation was supplemented by three new laws: Law No.  4.595/12 of 
                                                
64 In February  2017, the main lending rates in local currency averaged 17.7%. This group includes the 
rates for commercial loans (for terms less than and greater than one year ), development loans (for terms less 
than and greater than one year), personal consumer loans (for terms less than and greater than one year), 
and credit card loans. Borrowing rates averaged 4.9% and included the rates on demand deposits, 1 80-day 
savings c ertificates, savings certificates for terms of less than 365 days and savings certificates for more than 
365 days. Online information from the BCP, viewed at: 
https://www.bcp.gov.py/userfiles/files/tasas_interes_Promedios_02_2017  per cent282  per cent29.pdf . 
65 Calculated as the difference between an average lending rate of 9.2% and a borrowing rate of 2.35%. 
Online information from the BCP, viewed at: 
https://www.bcp.gov.py/userfiles/files/tasas_interes_Promedios_02_2017  per cent282  per cent29.pdf . 
66 Online information from t he AFD, viewed at: https://www.afd.gov.py/home . 
67 Information provided by INCOOP.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  16 May 2012 on the system of payments and settlem ent of securities; Law No.  5.476/15 of 
22 September  2015 establishing rules on transparency and protection of users in the use of credit 
and debit cards; and Law No.  5.787/16 of 19  December  2016 on the modernization and 
strengthening of the rules governing  the operation of the Paraguayan financial system. In addition 
to the above, various resolutions were issued.68 
4.82.   To engage in activities in Paraguay, banks, finance companies and other credit institutions 
must obtain the express authorization of the BCP, sub ject to a favourable opinion on the part of 
the SB. In accordance with the provisions of the Law on Banks, financial system entities must be 
set up as public limited companies and their capital must be represented by registered shares, 
except in the case o f those established under a special law or as branches of foreign banks. Banks 
will be authorized to purchase, keep and sell shares and bonds issued by public limited companies 
established in Paraguay. There are no limits on the participation of foreign ca pital in financial 
entities or requirements with respect to the nationality of the members of the board of directors or 
the shareholders. Law No.  861/96 provides for foreign investment in financial entities to receive 
the same treatment as domestic capital , without specified limits. There are no restrictions on the 
number of banks that can operate in the country. Moreover, under the Law on Banks, public banks 
must compete on equal terms with private banks and may not receive preferential treatment from 
the BCP.69 Branches of foreign banks may transact the same business as other banks, including 
deposit taking. On the other hand, representative offices of banks established abroad may not 
enter into banking or financial transactions with natural or legal person s resident in Paraguay.70 
4.83.   There is no law on financial conglomerates at consolidated level. A bank may purchase 
shares of other companies subject to certain quantitative and time-limits. Moreover, Law 
No. 861/96 (Article 23) establishes limits on cross part icipation in the banking system, since it 
stipulates that owners of shares in a bank that allow them to exercise shareholder control or 
decisively influence the corporate will of the bank, may not hold more than 20% of the shares of 
another bank, finance c ompany or credit institution.  
4.84.   Financial institutions must satisfy a series of requirements in order to become incorporated 
or established in Paraguay; these include: submitting draft articles of association and an 
investment plan, having internal control a nd audit systems, providing a list of shareholders 
indicating their participation in the registered capital, and supplying information concerning the 
integrity and financial standing of the members of the board of directors and administrative 
bodies. The L aw on Banks and its amendment authorize the BCP to determine or change these 
requirements. In addition, branches of foreign banks must provide corresponding authorizations 
from the parent company and from the supervisory body of the country of origin, whic h must 
comply with international standards of supervision.  
4.85.   Law No.  861/96 and its amendment stipulate the minimum paid -up capital to be maintained 
by any financial entity established in Paraguay. Branches of foreign banks and financial entities are 
require d to maintain the same amount of minimum paid -up capital as banks and financial entities 
incorporated in Paraguay. This capital is adjusted annually on the basis of the Consumer Price 
Index (CPI). For 2017, it has been established as follows: banks, ₲50 billion; finance companies, 
₲25 billion; public bonded warehouses, ₲12,693  million; foreign exchange brokers, 
₲3,892  million; and trust companies, ₲25 billion.71 
4.86.   Law No.  5.787/16 contains provisions relating to bank solvency and stipulates, for example,  
that the ratio of core capital (level 1) to risk -weighted assets and contingency reserves must not 
be less than 8% and the ratio of regulatory capital (net worth) to risk -weighted assets and 
contingency reserves not less than 12%.72 In practice, the Paragu ayan banks amply exceed these 
requirements: the average across the banking system for the second of these two indicators was 
                                                
68 These resolutions, which relate, among other things, to the regulation of fiduciary operations, tax 
havens, risk management, non -banking correspondents, basic savings accounts, electronic means of payment, 
credit and debit cards, financial leasing operations and the rating of foreign financial entities, can be viewed on 
the BCP website.  
69 Articles 7 and 8 of Law No.  861/96.  
70 BCP R esolution No.  3, Record of Acts No.  86 of 12  December  2007.  
71 Circular of the Banking Supervisory Authority No.  00005/2017 of 4  January  2017. Viewed at: 
https://www.b cp.gov.py/userfiles/files/CIRCULAR_005_2017_CAPITAL_2017.pdf . 
72 Resolution No.  1, Record of Acts No.  44, of 21  July 2011 and Resolution No.  3, Record of Acts No.  4, 
of 2 February  2012.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  18.1% in June  2016.73 All financial entities must, by law, maintain a legal reserve equivalent to 
100% of their capital, built up th rough annual allocations of at least 20% of net profits. They must 
also forward updated information with regard to their risk levels to the Risk Register administered 
by the SB.  
4.87.   The regulations in force allow residents to make deposits in institutions esta blished abroad 
through financial advisory departments (Resolution No.  4, Record of Acts No.  86, of 
12 December  2007) set up by local banks.  
4.88.   The regulatory framework for cooperatives is established by INCOOP Resolution No.  499/04 
regulating the constitution , organization and operation of cooperatives and the cooperative sector, 
INCOOP Resolution No.  15.156/16 approving the regulatory framework for cooperatives in the 
savings and loan sector, INCOOP Resolution No.  15.017/16 approving the regulatory framework 
for cooperatives in the production sector and INCOOP Resolution No.  15.743/16 approving the 
regulatory framework for cooperative associations.  
4.89.   VAT is levied on loans and financing in accordance with Law No.  2.421/04. There are no 
specific taxes on transfer s into foreign accounts.  
4.4.1.3   Insurance services  
4.4.1.3.1   Market structure  
4.90.   In 2016, the insurance subsector contributed 1.4% of GDP. On 30  June 2016, direct 
premiums amounted to ₲2,119.8  billion (US$378.4  million), more than twice the amount recorded 
on the same date in  2010 ( ₲893.6  billion). Direct premiums per capita amounted to ₲298,034 
(US$53.3). On 30  June 2016 a total of 512,390 policies had been issued.  
4.91.   At the close of financial year 2016 (30  June), the motor vehicle branch was accounting for 
47.7% of the total va lue of premiums, followed by the short -term coverage life (13.5%) and 
fire (8.3%) branches. Long -term coverage life insurance accounted for 0.23% of total premiums.  
4.92.   In February  2017, there were 36 companies providing insurance services in Paraguay, of 
which three were majority foreign -owned. All the insurance companies were authorized to sell 
property and casualty insurance and eight of them were also authorized to sell life insurance. At 
that time, the largest insurers in terms of direct premiums were Mapf re Paraguay Compañía de  
Seguros S.A. (18%), Aseguradora del Este S.A. de Se guros y Reaseguros (11%) and 
La Consolidada S.A. de Seguros (9.8%). In February  2017, the total net worth of the 36 insurance 
companies amounted to ₲1,100.2  billion (some US$201.3  million).  
4.93.   There are no reinsurance companies established in Paraguay. In February  2017, there were 
124 reinsurance companies operating from abroad which were authorized to provide these services 
and registered with the supervisory authority for that purpose . At the same time, 1,071 insurance 
and reinsurance auxiliaries (including 997 insurance agents, 51 brokers and 23 loss adjusters) 
were also operating.74 
4.4.1.3.2   Regulatory framework  
4.94.   The principal legal instrument governing insurance activity is Law No.  827/96 of 
12 February  1996. This Law contains the general rules for the subsector, the procedures for 
establishing, operating and winding up insurance companies, and the responsibilities and 
obligations of the supervisory authority. The Law provides for insurance to be divided into 
two branches: life insurance and property insurance, each requiring separate authorization. The 
Law is supplemented by a series of resolutions.75 
                                                
73 Central Bank of Paraguay (2016), Informe de Estabilidad Financiera, octubre de 2016 . Viewed at: 
https://www.bcp.gov.py/userfiles/files/Informe_Estabilidad_Financiera_28_10_16.pdf . 
74 Online information from the BCP, viewed at : https://www.bcp.gov.py/entidades -supervisadas -
registros -i325. 
75 The resolutions implemented deal, among other things, with the technical reserves coverage regime, 
the investmen t of investable funds and corporate governance, the transmission of information from insurers to WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.95.   The entity responsible for supervising the insurance and reinsurance companies and 
insurance ma rket agents is the Insurance Supervisory Authority (SS), which reports to the BCP's 
Board of Directors but has operational and administrative autonomy in performing its functions. Its 
main objective is to ensure the financial and technical capacity of the market operators and the 
proper administration of the subsector's risks and resources. The SS is authorized to frame 
sectoral policy and regulate, supervise and ensure compliance with the corresponding legal 
provisions, and to intervene in those companies in which serious irregularities are detected.  
4.96.   Through the Insurance Advisory Council, established by Law No.  827/96 and composed of 
insurance company associations, insurance brokers and loss adjusters, the latter can inform the 
SS of their views on draft l aws, accounting system standards and general issues of concern to the 
insurance sector.  
4.97.   Under Law No.  3.899/09, which regulates rating agencies, insurance company solvency 
margins have to be calculated by the rating agencies. The SS publishes the results o n its web page 
once every two months.76 In February  2017, there were three rating agencies operating under the 
supervision of the National Securities Commission.  
4.98.    Under Law No.  827/96, for a company to be able to obtain authorization to provide 
insurance se rvices it must satisfy the following conditions: (i) be legally established in Paraguay in 
accordance with the general laws and the specific provisions of the Law on Insurance; (ii) be 
exclusively devoted to providing insurance, including furnishing bonds and guaranteeing 
third-party operations; (iii) meet the minimum capital requirement (see below); (iv) its organizers 
and authorities must not be legally disqualified; (v) the insurance plans must meet the technical 
requirements laid down in the Law itself;  and (vi) where foreign companies are concerned, the 
balance sheets for the previous five years must show solvency margins at least equal to those 
required of domestic insurance companies. Once these requirements have been met, the 
supervisory authority wi ll rule within 90 days; at the end of this period, if the authority has not 
raised any objections, the company will be automatically authorized.  
4.99.   There are no restrictions on the participation of foreign capital, the number of companies or 
the number of sub sidiaries, nor with respect to the type of insurance services that can be offered 
by foreign insurance companies established in the country. Neither are there any nationality 
requirements with respect to the members of the board of directors of an insuranc e company.  
4.100.   Insurance firms must be set up and operated as public limited companies or as branches of 
foreign companies, a term taken to mean administrative units of a foreign insurance company that 
possess autonomy of management and differentiated assets a nd are separately registered in 
accordance with Paraguayan insurance regulations. Branches may engage in insurance activities 
under the same conditions as public limited companies set up in Paraguay. Reinsurance services 
may be supplied by reinsurance comp anies operating from abroad, provided that they are 
registered with the SS. Authorized foreign reinsurers may provide services directly without the 
need either to set up a representative office in Paraguay or to operate through an agent or broker.  
4.101.   The mini mum capital required for insurance companies is the equivalent in guaranís of 
US$500,000 in cash for each branch of insurance. If a company's minimum capital falls below the 
level laid down while it is operating, it will be required to make up the shortfal l within 180 days of 
the event. Otherwise its authorization to operate will be revoked.  
4.102.   Although there are no such companies active, Law No.  827/96 allows reinsurance 
companies to be established in Paraguay to engage in both branches of insurance. Reinsure rs 
wishing to set up in the domestic market must constitute and maintain assets equal to not less 
than the equivalent of US$2.5  million for each branch of insurance in which they operate and 
register with the SS. To be authorized to operate in Paraguay, re insurers operating from abroad 
must demonstrate their international standing or produce a valid authorization certificate issued by 
the supervisory body of the country in which they are established.  
                                                                                                                                                  
the supervisory authority, the calculation of the solvency margin, the regulation of surety bond insurance, 
intermediation commissions, the regulation of the c harging of commissions, and rules of conduct for 
intermediaries.  
76 For example, the results for February  2017 may be viewed at: 
https://www.bcp.gov. py/userfiles/files/FEBRERO_2017_INDICAD_FINANC_CON_RIESGOS_25_04_17.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.103.   In addition, locally established insurance and reinsuranc e companies must demonstrate 
and maintain as a solvency margin a minimum technical capital (or uncommitted equity capital) in 
accordance with the amounts that result from the parameters established by the SS, as well as a 
guarantee fund equivalent to at le ast 30% of the uncommitted equity capital.77 
4.104.   There is free pricing: insurance entities may freely establish the premiums and 
commissions for the services they offer. For life insurance the technical terms and conditions 
applicable must be registered before premiums and commissions can be set.  
4.105.   The composition of the insurance companies' investment portfolio must fit within certain 
parameters which indicate the maximum limits where the representative assets (eligible assets 
that support the technical reserves)  are concerned. For example, it is possible to invest: (a) up to 
80% of the technical reserves in securities issued by the National Treasury or by the BCP, or 
guaranteed by them until totally extinguished; (b) up to 75% of the technical reserves in 
instrum ents issued by banks and financial entities; and (c) up to 30% of the technical reserves in: 
bonds and notes issued by municipalities, State -owned enterprises or private companies enrolled 
in the Securities Market Register; shares of public limited compani es listed in the Securities Market 
Register ; holdings in investment funds and mutual funds; and performing loans granted to the 
insured (provided that they do not exceed 60% of the total balances in favour of the company, net 
of interest). They may also in vest up to 35% of the technical reserves in Paraguayan real estate 
and up to 10% in first -rank mortgages on properties situated in the country.  
4.106.   Law No.  827/96 also regulates the occupation of insurance auxiliary. The SS supervises 
this activity and maintai ns a register of insurance and reinsurance intermediaries, loss adjusters 
and external auditors. Only persons entered in the register can engage in these activities legally in 
Paraguay.  
4.4.1.4   Securities market  
4.107.   The National Securities Commission (CNV) is the regu lator for Paraguay's securities 
market. The  CNV is a public, self -governing and autonomous entity with, inter alia , the following 
functions: to monitor and supervise compliance with the provisions of Law No.  1.284/98 and its 
regulations; to make operative,  by means of general rules, the laws relating to the securities 
market; to promote and preserve a competitive, orderly and transparent securities market; to 
ensure correct market price formation; to supervise the securities market and its operators; and to  
maintain the Public Securities Market Register.78 
4.108.   The main laws and regulations in force include: Law No.  1.284/98 on the securities 
market, Resolution CNV No.  763/04 implementing the provisions of Law No.  1.284/98; Law 
No. 5.452/15  regulating investment f unds; Law No.  5.067/13  amending Articles 2 and 31 of Law 
No. 1.163/97 regulating the establishment of commodity exchanges; Law No.  3.899/09  regulating 
rating agencies; and Law No.  1.036/97  creating and regulating securitization companies. The rules 
and reg ulations also include the Resolutions of the Stock and Commodity Exchange of Asunción 
S.A. (BVPASA) validated by the CNV.  
4.109.   The securities available for trading on the Paraguayan market include: (a) fixed -income 
securities (FIC) such as corporate bonds (with  and without collateral); subordinated bonds; 
financial bonds; investment bonds; short -term stock -market bonds; treasury bonds; municipal 
bonds; negotiable securities issued under trust developments; (b) variable -income securities: 
common and preferred sto ck; and (c) repos.  
4.110.   In February  2017, there were 143 brokers registered with the CNV: 41 open -capital 
issuers; 35 issuers (bonds only); six rating agencies; one stock exchange (BVPASA); one mutual 
fund manager; nine brokerage firms; 12 stock traders; and 38  external auditors.79 The right to 
trade on the stock exchange is non -transferable and exclusive to the brokerage firms which, in 
                                                
77 Resolution SS.SG No.  239 of 21  September  2007, as amended by Resolution SS.SG No.  020 of 
2 March  2010.  
78 Law No.  1.284/98 (Article 165).  
79 Online information from the CNV, viewed a t: 
http://www.cnv.gov.py/publicaciones/folletos/informe_mensual_febrero_17.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  order to pursue their activities, must register with the CNV, after meeting the requirements set out 
in the Law and those estab lished by the CNV.80 
4.111.   The BVPASA was established in 1977. Law No.  94/91 created the legal framework 
necessary to initiate stock market operations and the market regulator, the CNV. The BVPASA's 
first trading session was held in 1993, with the participation o f nine issuing companies, marking 
the start of securities market operations in Paraguay.81 In 2016, stock -market turnover totalled 
₲4 billion, or some US$591  million, 23% more than the volume traded in 2015. Out of this total, 
48% was traded on the primary market and 52% on the secondary market. Fixed -income 
instruments accounted for 90.9% of the volume traded, with variable –income instruments 
accounting for 2.5% and repos for 6.6%.82 Some 60% of trades were in guaraníes and 40% in 
US dollars.83 
4.4.2   Telecommunicat ions 
4.112.   In Paraguay, the communications sector includes telecommunications and postal services. 
In 2016, its share of GDP was 3.4% (Table 1.1). Together with transport and storage, in 2015, the 
sector generated 3.9%  of total employment. All telecommunications  services are supplied under a 
legal regime of free competition. The basic service, which includes local fixed telephony and trunk 
and international services, is provided solely by the State -owned Compañía Paraguaya de 
Comunicaciones S.A. (COPACO S.A.).84 The sector's activities are governed by the rules laid down 
in the National Telecommunications Plan (PNT) 2016 -2020.  
4.113.   The density levels for fixed telephony and fixed broadband access are still among the 
lowest in Latin America. In 2016, fixed line density w as five lines per 100 inhabitants, below the 
levels in 2011 (6.1 lines per 100 inhabitants). However, fixed broadband penetration improved 
during the review period, although it was still low, at 3.5 per 100 inhabitants in 2016. The 
authorities have indicat ed that the reasons for the low penetration rate may include the high cost 
of fixed broadband access and the lack of dissemination of information and communication 
technology (ICT). Broadband service is unaffordable for a substantial segment of the Paragua yan 
population, since on average the monthly tariff for a basic 1 Mbps fixed broadband Internet access 
connection amounts to about 7.5% of an individual's monthly income.85 With respect to the poor 
dissemination of ICT, the authorities consider that the mea gre adoption of fixed broadband is 
partly due to the lack of an educational system based on its dissemination, as well as the scant 
use of ICT within the work environment and by industry. As might be expected given the low level 
of access to fixed broadban d, the provision of fixed Internet services in Paraguay is characterized 
by a speed which, on average, is lower than in other Latin American countries (1.4 Mbps).86 
4.114.   In contrast to the low fixed -line penetration, the level of mobile telephony penetration is 
high: 105.4 cell phone subscriptions per 100 inhabitants in 2015, as compared with 
                                                
80 Law No.  1.284/98 (Articles 104 and 106)  
81 Online information from the BVPSA, view ed at: 
http://www.bvpasa.com.py/page.php?page=22&titulo=resenahistorica . 
82 34.2% were subordinated bonds, 32.9% public bonds, 22% corporate bonds, 6.7% financial bonds, 
2.5% shares, 1.3% credit instruments and 0.5% other bonds.  
83 Online information from the BVPASA, viewed at:  
http://www.bvpasa.com.py/upload_file/BO LETIN%20TRIMESTRAL%20N%2014  per cent284  per 
cent29.pdf . 
84 COPACO also offers wireless fixed telephony, Internet and mobile telephony services. Online 
information from COPACO. Viewed at: https://www.copaco.com.py/portal/index.php/sobre -copaco.html . 
Although COPACO might appear to be a de facto  monopoly, the authorities have noted that despite its being 
the only concessionaire in these markets, it is not the only provider of domesti c call services since it faces 
direct competition from services provided by mobile operators at the national level. They have also pointed out 
that at the national and international levels competition has been affected by new "over the top" (free 
transmiss ion) technologies such as WhatsApp, Snapchat, Facebook, Skype and the like. At present, there are 
no plans to privatize COPACO.  
85 According to the United Nations Broadband Commission, to be affordable the average monthly tariff 
should not exceed 5% of aver age income.  
86 National Telecommunications Plan (pp. 61 -75). Viewed at: 
https://www.conatel.gov.py/images/iprincipal/PNT%202016_2020/RD.244.201 6%20 -
%20PNT%202016_2020.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  87.1 subscriptions per 100 inhabitants in 2010.87 To this must be added the somewhat over 40% 
of the population with access to mobile broadband services, a percentage much hig her than that 
for fixed broadband access. According to the authorities, this is due to the fact that mobile 
broadband costs are lower than those for fixed broadband. Moreover, financial services provided 
digitally have contributed to the expanded use of IC T in commercial activities, which in turn has 
made a positive contribution to the expansion of mobile broadband subscriptions.  
4.115.   As indicated in the previous review, Paraguay has four providers of mobile telephone 
services: Telecel S.A. (Tigo), Núcleo S.A. ( Personal), Hola Paraguay S.A. (owned by COPACO) 
(Claro) and AMEX Paraguay S.A. (Vox). Tigo is still the main provider, with a market share of 48% 
in 2016. During the review period, Vox's market share decreased, while Claro's increased 
considerably (Table 4 .4). 
Table 4.4 Mobile telephone users by licensee, 2011 -2016  
Licensee  Investor  2011  2012  2013  2014  2015  2016  
Tigo Millicom International  3,613,754  3,788,640  3,816,835  3,823,924  3,893,508  3,610,321 
Personal  Telecom Argentina  2,050,811  2,162,754  2,262,067  2,346,670  2,429,922  2,471,257 
Vox COPACO S.A.  462,612  402,742  465,795  522,054  219,293  246,438 
Claro América Móvil  401,876  439,567  508,600  612,629  869,263  1,161,458 
Total  6,529,053 6,793,703  7,053,297  7,305, 277 7,411,986  7,489,474  
Source:  CONATEL.  
4.116.   During the review period, there was a broadening of access to GSM, 3G and 4G/LTE 
technologies, which, as indicated, generated an increase in mobile Internet penetration. Also 
during the review period, number portab ility was implemented for mobile telephony. It is 
estimated that, between 2012 and 2016, around 556,726 mobile telephone subscribers in 
Paraguay retained their telephone number when switching to a new operator.88 
4.117.   Paraguay signed memoranda of understanding w ith Brazil and Argentina for projects to 
improve connectivity in 2016 and 2017, respectively. The work proposals for the project with 
Brazil are in their initial stage. With regard to the project with Argentina, the work proposals have 
not yet been drawn u p. The authorities have indicated that cross -border fibre -optic connectivity 
projects are just being implemented on the initiative of companies that hold data transmission and 
Internet access licences.  
4.118.   The MOPC is the government department responsible for framing policy for the 
communications sector in Paraguay. The National Telecommunications Commission (CONATEL), a 
self-governing entity linked with the Executive through the MOPC, is the sector's regulatory body. 
CONATEL's responsibilities include : adminis tering the electromagnetic frequency spectrum, issuing 
regulations, approving technical standards, regulating and overseeing the granting of concessions, 
licences and authorizations, proposing tariff regimes to the Executive, establishing the terms and 
conditions governing interconnection contracts, approving telecommunications equipment, 
supervising the introduction of new technologies, and preventing anti -competitive and 
discriminatory behaviour in the sector.89 The authorities have confirmed that COPACO i s subject 
both to the Law on the Protection of Competition (Law No.  4.956/13) and the Government 
Procurement Law.  
4.119.   During the review period, CONATEL updated and developed the new National 
Telecommunications Plan (PNT) 2016 -2020, which has three main themes:  "towards a more 
connected society", "digital inclusion" and "regulatory efficiency".90 These themes each comprise 
six programmes divided, in their turn, into 14 projects and more than 50 actions to be carried out 
                                                
87 Online information from the International Telecommunication Union, viewed at: 
http://www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx . 
88 Online information from CONATEL, viewed at: 
https://www.conatel.gov.py/images/iprincipal/PORTABILIDAD/ESTADISTICA %20GENERAL%20DE%20NUMERO
S%20PORTADOS%20A%20ENERO%202017.pdf . 
89 WTO document WT/TPR/S/245/Rev.1 of 16  May 2011.  
90 In Paraguay telecommunications policy is incorporated in the National Telecommunications Plan 
(PNT), which lists and develops the objectives a nd actions, as well as the methodology of all the sector's 
activities. With respect to the PNT 2011 -2015, the main successes and advances achieved were the auction of 
the 1700 -2100 MHz frequency band for the deployment of the 4G network, the increase in mo bile telephony 
coverage, and the progress with broadband trunk expansion.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  over the next five years to achieve the Pla n's main objectives, which are, inter alia : (a) to increase 
broadband connectivity from 10% to 40% of the population; (b) to achieve 70% connectivity for 
the country's enterprises; (c) to reduce the unit cost of data transmission by 80%; and (d) to 
expand the provision of fixed and mobile telephone services for the entire population.91 
4.120.   The PNT identifies an increasing demand for telecommunications services in Paraguay, 
which it attributes to four factors: (i) an increase in the average contracted bandwidth, (ii) the 
increase in the population by a  million people in ten years, (iii) increased business demand, and 
(iv) the strong growth of demand from public institutions such as schools, hospitals and 
administrations. Moreover, the PNT identifies a series of sh ortcomings in the area of 
telecommunications with which Paraguay is currently confronted, such as inadequate infrastructure 
and the lack of direct access to submarine cables. In this latter respect, the PNT points out that 
the telecommunications operators only have access to maritime cables via land links through 
bordering or transit countries (for example, Brazil and Argentina), which considerably increases 
communication costs.92 
4.121.   The PNT also identifies investment opportunities, mainly in the areas of expan sion of the 
network infrastructure, the offer and management of terminal equipment, and the virtual services 
offered to businesses, the government and the population. It is expected that the PNT will bring 
benefits by ensuring regulatory predictability, tr ansparency and an improved environment for 
investment, while at the same time generating social benefits.93 
4.122.   The legal framework for the telecommunications sector has remained almost unchanged 
since Paraguay's last TPR. The main legislation includes the prov isions of the National Constitution 
(1992), the Law No.  642/95 on telecommunications and CONATEL's various regulations 
(Table  4.5). During the review period, CONATEL issued a number of technical regulations, for 
example, those concerning the television ser vice with analogue and digital technology (Resolution 
No. 1.223/11), the Internet protocol (Resolution No.  1.436/11) and online payments and credits 
relating to telephony services (Resolution No.  934/14). New rules were also approved in 
connection with the  procedure for obtaining licences and authorizations for the supply of Internet 
access and data transmission services (Resolutions No.  1.995/11 and No.  1.086/14), 
satellite  transmission of occasional signals (Resolution No.  767/15) and cable service 
(Resol ution No. 2.278/14).  
Table 4.5 Principal laws and regulations governing the telecommunications sector  
Legislation  Description  
Law No.  642/95 and its 
amendments  Establishes general rules for the various ways of supplying telecommunications 
services, the tariff regime and interconnection, among other aspects  
Resolution No.  871/02  Regulates interconnection  
Resolution No. 190/09  Regulates Internet access and data transmission services  
Resolution No.  1.601/10 
and Resolution No.  222/11  Regulates number portability  
Resolution No.  196/14  Universal Services Fund  
Resolution No.  197/14  Regulates the registration of the satellite capacity provider  
Resolution No.  871/14  Regulates telecommunications user protection and number portability  
Law No.  5.629/16  On the blocking of stolen or lost cell phones  
Resolution No.  1.401/16  Regulates the validity and expiry of credits relating to cellular mobile telephony, 
PCS, Internet access and data transmission services  
Decree No. 6.999/17  General Regulations on Telecommunications Service Tariffs  
Source:  Online information from CONATEL, viewed at: https://www.conatel.gov.py/index.php/2015 -02-17-
18-58-32; and https://www.conatel.gov.py/index.php/2015 -02-17-19-32-25/2015 -02-25-12-56-22. 
                                                
91 Third Report of President Horacio Cartes to Congress and the Nation (2016), July (p. 98). Viewed at: 
http://www.informepresidencial.gov.py/documents/14304/0/infomre+presidencial+2016+web.pdf/b7ced2a7 -
61fc-42d6-b9d4-c9ff832e5b4e . 
92 National Telecommunications Plan 2016 -2020 (p. 99). Viewed at:  
https://www.conatel.gov.py/images/iprincipal/PNT%202016_2020/RD.244.2016%20 -
%20PNT%202016_2020.pdf . 
93 Ibid., p. 15.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.123.   There were no changes in the rules and procedures relating to concessions, li cences or 
authorizations for the provision of various types of services during the review period.94 The 
requirements for obtaining licences and authorizations are the same for domestic and foreign 
companies. However, to provide or operate a telecommunicatio ns service, foreign companies must 
establish domicile in Paraguay or appoint a legal representative in the country. Only natural 
persons of Paraguayan nationality or legal persons established and domiciled in Paraguay may hold 
a radio or television broadca sting licence. Moreover, some telecommunications services continue to 
be reserved for the State.95 
4.124.   The interconnection rules are also the same as those described in the Secretariat report 
prepared for the 2011 TPR.96 During the review period, CONATEL issued various resolutions for 
establishing the ceilings on interconnection charges.  
4.125.   The Universal Services Fund (FSU), administered by CONATEL, promotes the expansion of 
public telecommunications services in rural areas and zones of public and social interest by  
granting subsidies to service providers and promoting access to public telecommunications 
services at reasonable prices.97 The FSU is resourced by 20% of the receipts from the commercial 
operating fees paid by the operating companies. The telecommunication s sector is able to access 
some of the financing facilities offered by the BNF.98 
4.126.   Law No.  642/95 (Article 92) and the General regulations on telecommunications service 
tariffs (Decree No.  6.999/17) authorize CONATEL to establish the structure and tariff lev els of 
telecommunications services. There are two tariff regimes: maximum prices and control of 
reasonableness. Public services (local telephony and trunk and international calls) are subject to 
the maximum prices regime, in which CONATEL sets ceilings for  the different types of services; 
these prices are determined in the concession contract and reviewed every six months. In 2017, 
the tariff for a commercial -category basic monthly subscription to the basic telephony service (VAT 
included) was ₲32,200 and the residential -category subscription ₲26,700, while the national calls 
tariff was ₲145 per minute.99 For other telecommunications services, including mobile telephony, 
the "control of reasonableness" system is used; in this case tariffs are fix ed freely, as a function of 
supply and demand, unless CONATEL can show the absence of competition in the 
telecommunications services markets or the existence of anti -competitive practices, in which case 
it may take remedial action. The authorities have not ed that there have been no situations 
requiring the implementation of price controls. In the context of this review, CONATEL has 
indicated that it has sometimes intervened in a precautionary way, for example, to verify that 
when services are being promoted  the public is not receiving erroneous information  
4.4.3   Transport  
4.4.3.1   General features  
4.127.   In 2016, the transport sector accounted for 3.3% of GDP and, together with storage and 
communications, 4.2% of employment (Table 1.1). Paraguay's transport network consists of 
3,100 km of navigable waterways, mainly along the rivers Paraná and Paraguay, together with a 
2,250 m operable rail link for the transport of goods, and a 60,000 -km-long national road network, 
4,068 km of which are paved. Due to its land -locked situation, Pa raguay does not have a maritime 
infrastructure, but continues to maintain warehouses and free ports in certain seaports belonging 
                                                
94 The provision of telecommunications services requires a concession, licence or authorization, 
depending on the service concerned. Concessions are granted for basic services, while licences are granted for 
broadcasting services and value -added services (mo bile telephony and Internet). Other services (for example, 
local and emergency radio) require an authorization.  
95 These are: meteorological broadcasting services, air, river, maritime and aerospace navigation, and 
emergency and safety. Any other service ca n be reserved for the State for reasons of public interest.  
96 WTO document WT/TPR/S/245/Rev.1 of 16  May 2011.  
97 Online information from CONATEL, viewed at: https:// www.conatel.gov.py/index.php/2015 -02-17-19-
32-56/2015 -02-25-12-57-51. 
98 National Telecommunications Plan 2016 -2020 (p. 84). Viewed at: 
https: //www.conatel.gov.py/images/iprincipal/PNT%202016_2020/RD.244.2016%20 -
%20PNT%202016_2020.pdf . 
99 Online information from COPACO S.A., viewed at: www.copaco.gov.py . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  to neighbouring countries, for loading and unloading its exports and imports.100 As explained in 
Paraguay's previous TPR, the di stance from the commercial centres to the seaports is significant 
(for example, Asunción, the capital, is 1,325 km away from the nearest seaport). This contributes 
to the high transport costs and has an impact on the costs of imports and exports.  
4.128.   In July  2012, the Government presented an updated version of the master plan for 
Paraguay's infrastructure and transport services, containing several MOPC projects for improving 
the transport infrastructure. Likewise, in 2013, Paraguay's national logistics plan was  published; 
this is intended to promote the development of logistics, its services and the infrastructure needed 
for the various kinds of loads to be transported to their destinations efficiently, as part of the 
country's production chains, thereby improvi ng Paraguay's competitiveness.  
4.129.   The Investment and Export Network (REDIEX) has a logistical platform, the purpose of 
which is to coordinate the logistical activities of the principal providers and users. The platform is 
divided into three working groups: (a ) air connectivity; (b) land transport; and (c) river transport.  
4.130.   River transport continues to play an important role in the Paraguayan economy. Some 
80% by volume of Paraguay's import and export trade uses the river transport service via the 
Paraguay -Paran á Waterway (Puerto Cáceres/Nueva Palmira), and this route is also used for 
transporting 100% of the fuel coming from abroad. Air transport is more significant where 
high-value articles are concerned. According to data from the National Shipping and Ports 
Authority (ANNP), the cost of river transport to the points of access to the international markets 
averages US$26 per tonne, and the cost of multimodal land transport is US$30 per tonne.  
4.4.3.2   Air transport  
4.131.   Paraguay's airport infrastructure consists of 12 public airports, of which six are  
international (Silvio Pettirossi de Asunción, Guaraní de Ciudad del Este, Augusto Fuster de Pedro 
Juan Caballero, Dr  Luis María Magaña de Mariscal Estigarribia, Tte. Amín Ayub González de 
Encarnación, and Tte. Coronel Carmelo Per alta de Concepción) and six are domestic public airports 
authorized for general aviation. There is also a private airport (Aeropuerto de Itaipú), which is for 
the entity's own requirements and is not operated commercially . In 2016, a total of 
1,033,168  passengers travelled by air (946,471 international passengers and 56,697 domestic  
passengers). In that same year, 17,984,157 kg of freight was imported by air and 2,632,627 kg 
exported.  
4.132.   The National Civil Aviation Directorate (DINAC), an autonomous body linke d to the 
Executive through the Ministry of Defence, is responsible for regulating civil aviation, as well as for 
proposing policies for the sector and representing Paraguay in international forums and 
negotiations. DINAC is also charged with operating and administering all the country's airports. 
However, in practice, this is limited to all the international airports and the domestic public 
airports. Other functions include managing and maintaining the air traffic control services, 
assisting air navigation and communications, and establishing safety systems.  
4.133.   The principal legal instruments that govern air transport are the National Constitution of 
1992, the Paraguayan Aviation Code, DINAC's Charter, the aviation regulations and the bilateral 
and multilateral  air transport agreements. Since 2011, DINAC has issued various resolutions and 
decrees.101 
4.134.   Airlines certified in accordance with the national regulations may be up to 100% 
foreign -owned, provided that they are in a position to fulfil the obligations laid do wn in the laws 
and regulations for the operation of domestic and international air services. One of the conditions 
for an airline to be certified and designated by Paraguay is for it to be established and have its 
                                                
100 These are located in Argentina (Buenos Aires and  Rosario), Brazil (Rio Grande do Sul, Paranagua and 
Santos), Chile (Antofagasta and Iquique) and Uruguay (Montevideo and Nueva Palmira). Decrees 
No. 16.217/02 and No.  8.125/06 introduced the collection of an administrative expenses recovery charge fixed 
at US$50 for each bill of lading or shipping document relating to goods destined for Paraguay. In 2016, the 
proceeds of this charge amounted to 10.83% of the total collected by the National Shipping and Ports Authority 
(ANNP).  
101 Executive Decrees No.  8.701/1 2, No.  10.034/12, Decrees No.  10.035/12, No.  654/13, No.  2581/14 
and No.  4.333/15.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  principal place of business in Paraguayan territory and be effectively and continuously regulated by 
DINAC. For the purpose of setting up the board of directors of a domestic company, at least those 
who represent it legally must be located in Paraguay and the chairman, general manager and 
two thirds of the board of the owning company must be Paraguayan nationals.  
4.135.   To be registered under the Paraguayan flag, aircraft must be owned by natural or legal 
persons domiciled in Paraguay or have been leased by them. Only Paraguayan aircraft and foreign 
aircraft leased by domestic companies can provide cabotage services, unless the bilateral 
agreements to which Paraguay is party stipulate otherwise. At present the provision of cabotage 
services is permitted under the bilateral air services agreements with the following countries: 
Chile, El Salvador, Iceland, New Zealand, Qatar, Singapore and Uruguay and six of the member 
countries of the Open Skies Agreement (Table A4. 2). However, as of June  2017, no foreign airline 
had asked to provide such services.  
4.136.   The domes tic airlines that own Paraguayan -registered aircraft are Amaszonas del 
Paraguay, which is 100% foreign -owned (50% of the capital is Bolivian through Amaszonas Bolivia 
and 50% Spanish through Inversiones Líneas Aéreas Internacionales S.L.) and Solsa S.A. Th e 
company LATAM Airlines Paraguay, in which the State has a 5% holding, has an aircraft exchange 
contract. Amaszonas del Paraguay operates cabotage flights on the Asunción/Ciudad del Este 
route, and Solsa S.A. on the Asunción/Encarnación and Asunción/Pedro  Juan Caballero routes.102 
In June  2017, there were 12 airlines operating scheduled international and/or domestic passenger 
flights to, from or within Paraguay. The largest operators, in terms of market share, are: LATAM 
Airlines Paraguay (26%); Copa Airline s (17.5%); Aerolíneas Argentinas (11.9%); LATAM Airlines 
Brasil (11.3%), and GOL (11%).103 The main international destinations are Argentina, the 
Plurinational State of Bolivia, Brazil, Chile, Spain, Panama, Peru and Uruguay.  
4.137.   To increase Paraguay's connectiv ity, since 2008 DINAC has offered concessions on the 
charges for the services that it offers to airlines wishing to operate new routes with scheduled 
flights. The condition is that the routes are not already served by any airline with origin and/or 
destina tion at an international airport administered by DINAC.104 Decree No.  8.701/12 provided for 
two years' exemption from the payment of four airport service charges (flight protection, 
operations, aircraft parking, and ground handling and support) for companies  that will be carrying 
out exploratory flights. Decree No.  2.581/14 extended the period for which the exemptions are 
granted to a maximum of three years. In this connection, the authorities have indicated that since 
2011 they have granted incentives to fiv e airline companies for certain routes.105 Another incentive 
granted for the same purpose is exemption from the selective consumption tax on aviation fuel 
(Decree No.  10.034/12).  
4.138.   Paraguay is party to the Chicago Convention106 and all its annexes, as well as to  various 
multilateral instruments such as: the Agreement on Subregional Air Services (Fortaleza 
Agreement) between the MERCOSUR member countries, the Plurinational State of Bolivia, and 
Peru; the Horizontal Agreement with the European Union on certain aspe cts of air services; and 
the Multilateral Open Skies Agreement for the Member States of the Latin American Civil Aviation 
Commission (CLAC). During the review period, Paraguay signed new air services agreements with 
28 countries or economies. The authoriti es have indicated that the majority of these agreements 
are being provisionally applied on an administrative basis pending the completion of each party's 
statutory ratification processes. In total, in May  2017, Paraguay had signed 47 bilateral air 
services  agreements. The air traffic rights granted under each of these agreements are listed in 
Table A4. 2. 
                                                
102 Moreover, the airline LATAM Airlines Paraguay operates the routes from Asunción to Buenos Aires, 
Santiago de Chile, Lima, San Pablo and Río de Janeiro. The company Amaszon as del Paraguay has commenced 
scheduled international services from Asunción to Buenos Aires, Iquique and Salta.  
103 The other airlines, with their respective market shares, were: Avianca Taca (5.4%); Air Europa 
(5%); Amazonas del Paraguay (5%); Amazonas Bol ivia (3.2%); Buquebus (1.4%); Alas Uruguay (1.3%); Sol 
del Paraguay (0.7%); and Iberia (0.1%).  
104 Decree No.  8.701/12 and Decree No.  2.581/14. Viewed at: http://www.gacetaoficial.gov.py . 
105 COPA Airlines for t he route Panamá/Asunción and vice versa; BQB for the route Montevideo/Asunción 
and vice versa; Air Europa for the route Madrid/Asunción/Córdoba; Amaszonas Paraguay for the route 
Asunción/Iquique and vice versa; and Sola S.A. for its cabotage routes Asunció n/Pedro Juan Caballero and vice 
versa; and the route Asunción/Encarnación and vice versa.  
106 Ratified by Decree -Law No.  10.818/45 and Law No.  9/48.  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.139.   DINAC provides ground handling services at Paraguay's public airports; airlines, both 
domestic and foreign, may also provide these services. Restaurant and  catering, fuel supply, 
cleaning, rubbish handling and disposal and bird risk control services are outsourced. Providers of 
aircraft and component maintenance, inspection and repair services must be authorized by DINAC, 
which supervises and monitors their work.  
4.140.   The Government, through the MOPC, is trying to attract private investment for the purpose 
of modernizing Silvio Pettirossi international airport, under Law No.  5102/13 on the promotion of 
investment in public infrastructure and the expansion and upgr ading of goods and services 
provided by the State.107 The authorities have indicated that the draft Law is being evaluated.  
4.4.3.3   River transport  
4.141.   The Directorate -General of the Merchant Marine (DMM) is responsible for supervising and 
coordinating river and maritim e transport activities and the associated sectors. The DMM processes 
applications for the construction and equipment of private port terminals, as well as for the 
flagging, registration, equipping and inspection of merchant vessels, and grants permits to f oreign 
vessels for domestic cabotage. The National Shipping and Ports Authority (ANNP) operates the 
public river ports and the warehouses and free ports abroad. Moreover, it is responsible for 
matters relating to the navigability of the rivers. The Naval P refecture -General, part of the Navy, is 
responsible for the safety of navigation and port facilities and the river police service.  
4.142.   During the review period, some changes were made in the legislative framework governing 
river transport, such as, for example , the incorporation of 11 regulations of the Santa Cruz de la 
Sierra Paraguay -Paraná River Waterway Agreement (Puerto Cáceres -Puerto de Nueva Palmira).108 
There were no changes in the conditions that vessels must satisfy in order to obtain Paraguayan 
registr ation, which include the requirement that the master or owners and at least two thirds of 
the crew (except for seamen and mechanics) be Paraguayan nationals.109 In addition, the owners 
or builders must be domiciled or permanently represented in Paraguay. The  leasing of foreign 
vessels by Paraguayan ship -owners may be authorized by executive decree if there is insufficient 
national capacity. Decree No.  4.787/16, of 19  January  2016, stipulates that leased vessels may 
obtain Paraguayan registration for a period of three years, renewable for a further period of the 
same duration.110 
4.143.   In the course of the present review, the authorities have pointed out that Paraguay has the 
largest river fleet in the region and ranks third at world level. The country has a national r iver fleet 
totalling 2,977 vessels (2017), of which 1,782 are authorized for international river transport; to a 
large extent, these vessels are bulk -carrier barges.  
4.144.   National cabotage is reserved for Paraguayan flag vessels. To provide services in waters 
under Paraguayan jurisdiction, foreign vessels must obtain a special government permit and use 
the services of a pilot of Paraguayan nationality when entering or leaving port. All maritime and 
river transport of imports and exports is reserved for Paraguaya n flag vessels. If the cargo is 
coming from or bound for a LAIA member country, provided that the capacity exists, the 
requirement for maritime transport is up to 50% and for river transport at least 50%. The 
Paraguay -Paraná River Waterway Agreement, which  facilitates navigation and river transport 
                                                
107 Online information viewed at: http://www.mopc.gov.py/modernizacion -del-aeropuerto -internacional -
silvio-pettirossi -bajo-la-modalidad -de-alianza -publico -privada -p27. 
108 The main laws are: Law No.  476/57 establishing the River and Maritime Navigation Code (as 
amended by Law No.  1.448/99) and its Decree No.  6.984/59; Law No.  928/27 establishing the Harbour 
Regulations (as amplified by Law No.  1.158/85; Law No.  295/71 on Reserved Cargo and its Decree 
No. 27.371/81; Law N o. 419/94 governing the construction and operation of private ports; Law No.  160/93 
establishing rates and/or authorization for shipping -related services; and Law No.  269/93 ratifying the River 
Transport Agreement on the Paraguay -Paraná Waterway and its ad ditional protocols. During the review period 
new decrees were issued in relation to: requirements and procedures for the registration and flagging of ships 
and floating structures (Decree No.  1.357/14); and the incorporation of vessels in the national flee t (Decree 
No. 1.994/14, as amended by Decree No.  2.115/14).  
109 Professionals with a foreign qualification working in the merchant marine must revalidate their 
qualifications in accordance with the reciprocity criteria laid down in international agreements a nd in Law 
No. 1.158/85.  
110 Decree No.  4.787/16, of 19  January  2016. Viewed at: 
http://www.gacetaoficial.gov.py/index/getDocumento/32275 . WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  between the signatories111, abolished the flag reservation in river transport via the Paraguay river 
for Paraguayan vessels in favour of a regional reservation for cargo transported by vessels of the 
signatory coun tries, but did not remove the restrictions on cargo transported via other inland 
waterways or by sea.112 The cargo restriction provisions are enforced by means of import and 
export certificates issued by the DMM through the Single Window for Exports and the Single 
Window for Imports, respectively.113 
4.145.   Paraguay has several bilateral navigation and cross border river transport agreements with 
Argentina.114 Within MERCOSUR, Paraguay is participating in the negotiation of a maritime 
transport agreement. At multilatera l level, Paraguay is a signatory to the International Maritime 
Organization Convention, the SOLAS Convention ( Safety of Life at Sea ) and its Protocol, as well as 
to the Inter -American Convention on Facilitation of International Waterborne Transportation.  
4.146.   Paraguay has a total of 49  ports (private and public). In terms of trade, the most 
important ports are Caacupemí, Fenix and Terport for containers, and ADM and TROCIUK for grain. 
Most of the terminals are managed by the private sector (see below). The ANNP manages and 
operates 13 port terminals and more than 30 State -owned smaller ports, but altogether they 
account for less than 10% of the annual volume of goods handled. According to the authorities, 
problems stemming from the lack of timely investment and o bsolete tariff systems in face of the 
dynamic growth of the service have meant the loss of a large proportion of the ANNP's customers. 
Operational alliances have been formed with private sector companies. These agreements are 
being applied in the port term inals of Villeta, Concepción (pending execution of the contract) and 
San Juan del Paraná. The ANNP is currently implementing projects contained in its strategic plan 
including, in particular, the redevelopment of the Port of Asunción, the relocation of the  Port of 
Ciudad del Este and the reactivation of the New Port of Concepción. In May  2017, details for the 
construction of a modern terminal at the Port of Pilar were being finalized.  
4.147.   There are 49 private port terminals and approximately 95% of river trade passes through 
them. The private ports may freely determine the tariffs for the provision of their services.115 
Authorizations to build and operate port terminals are granted only to companies incorporated in 
Paraguay. Projects for building and operating pri vate ports are eligible for the benefits available 
under Law No.  117/92, which guarantees the same rights and obligations for both Paraguayan and 
foreign investors. According to the authorities, the private sector has made major investments in 
the last ten  years (around US$1.2 billion). There are no precise data on foreign investment in port 
terminals.  
4.148.   A decree issued in 2014 established the port terminal of Villeta as the only river entry 
point for agrochemical products.116 Other products are not subject to border entry point 
restrictions.  
                                                
111 The Paraguay -Paraná River Waterway Agreement  (and its six additional protocols) was concluded 
between the Plurinational State of Bolivia, Brazil, Paraguay and Uruguay. This legal instrument establishes 
provisions for navigation, trade and the transport of persons and goods involving the use of the W aterway, as 
well as a regional flag reservation. The Agreement was incorporated into the Paraguayan legislation by means 
of Law No.  269/93. The regulations of the Paraguay -Paraná Waterway were incorporated into the domestic 
legal system by Decree No.  2.611 /14. 
112 The cargo restrictions for maritime transport are not being applied in practice, since Paraguay does 
not operate in this sector.  
113 Law No.  160/93 establishes that the charge for issuing an import or export certificate is 0.50% of the 
minimum daily w age. 
114 The bilateral agreements signed with Argentina are as follows: Navigation Treaty (1967), the 
Convention on Cross -Border River Transport of Passengers, Vehicles and Cargo (1972) and the Convention for 
the Avoidance of Double Taxation in relation to A ir, River and Land Transport (1996).  
115 Law No.  419/94 provides for the creation of private ports and Decree No.  14.402/2001 designates 
the DMM as the agency responsible for applying the Law.  
116 Decree No.  1195/14 (repealing Decrees No.  11.583/13 and No.  10.250/07 and its amending Decree 
No. 10.485/13).  WT/TPR/S/360 /Rev.1  • Paraguay  
 
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  4.4.4   Tourism  
4.4.4.1   Characteristics of the sector  
4.149.   The importance of Paraguay's tourism sector increased during the review period. Hotels 
and restaurants contributed 1.5% of value added in 2016, a 50% increase as compared with 2011 
(Table 1.1). In 2015, the sector was employing 16,240 people, which is equivalent to 0.4% of total 
employment. In the same year, the income generated by tourists and excursionists represented 
1.7% of GDP.117 Likewise in 2015, there were 1.2  million international  tourist arrivals and 
2.9 million excursionist arrivals. The principal markets of origin of the tourists were Argentina 
(31%), Brazil (29%), United States (3%) and the Plurinational State of Bolivia (2%).118 According 
to the authorities, the recent increase in the number of foreign tourist arrivals is due to various 
factors, such as an increase in events, congresses and meetings.  
4.150.   Foreign direct investment in restaurants and hotels almost tripled during the review period 
(Table 1.8). Much of the investment in this field has involved large foreign companies allied with 
local investors. The investment projects have not been limited to the capital, Asunción, but have 
also extended to Ciudad del Este and Encarnación, and the participants have included 
United  States  and Spanish investors.119 
4.4.4.2   Policies and institutions  
4.151.   In Paraguay, tourism policy and activities are the responsibility of the National Tourism 
Department (SENATUR), which has ministerial rank and reports to the Office of the President of 
the Republic. SENATU R is charged with implementing national tourism policy, promoting domestic 
and international tourism, and planning, directing, supervising and administering all of the sector's 
enterprises and professionals. The Law provides for the establishment of a Nati onal Tourism 
System composed of a number of bodies, including SENATUR, the National Tourism Advisory 
Council, central government agencies and the departmental tourism councils, and of natural and 
legal persons enrolled in the National Tourism Register.120 The National Tourism Advisory Council, 
which includes participants from both the private and the public sector, advises SENATUR on 
tourism -related activities.121 
4.152.   SENATUR is responsible for formulating the National Tourism Plan, which contains 
strategies and ta ctics for the sustainable development of tourism.122 In addition, SENATUR is 
implementing other measures for promoting and developing the sector, such as the master plan 
for the sustainable development of Paraguay's tourism sector . The specific objectives of  this 
programme envisage the strengthening and decentralization of tourism administration in the 
country, the generation of local capacity for the planning and sustainable management of tourism 
and the creation of the conditions necessary to promote a comp etitive and exportable supply of 
tourist destinations and products .123 In addition to this plan , SENATUR is implementing the 
National Tourist Inns Programme, the National Youth Tourism Programme, the Meetings and 
Events Tourism Programme, the National Women' s Empowerment Programme, the National 
Tourist Quarters Programme, and the National Rural Tourism Plan. Moreover, campaigns to 
promote domestic and international tourism are being carried out, together with others such as the 
                                                
117 According to official sources, in 2015, the income generated by tourists amounted to 
US$426.3  million, while the income generated by excursionists amounted to US$57.3  million.  
118 Online information from the N ational Tourism Observatory, viewed at: 
http://www.observatorionacionaldetu rismo.gov.py/application/files/3714/6841/9606/RANKING_DE_VISITANTE
S_A_PARAGUAY_POR_NACIONALIDAD._PERÍODO_2010_A_2015_ -_copia_2.pdf . 
119 Online information from the Paraguayan Information Agency, viewed at: 
http://www.ip.gov.py/ip/?p=98583 . 
120 Law No.  2.828/2005 (Article 10).  
121 As established by Decree No.  8.111/06, the National Tourism Advisory Council is composed of: a 
representative of SENATUR; a representative of the MOPC; a representative of the MIC; a repr esentative of the 
Ministry of Foreign Affairs; a representative of the Ministry of Finance; a representative of the Ministry of 
Education and Culture; a representative of the SEAM; and a representative of the tourism trade associations.  
122 Decree No.  8.111/ 06 (Articles 29 and 30). The National Tourism Plan contains various strategies for 
developing the tourism sector (accessibility and facilitation; business sector; human resources; tourist products 
and promotion of tourism), each with its related programmes . 
123 Online information from SENATUR, viewed at: 
http://www.senatur.gov.py/application/files/9314/7920/7840/Plan_Maestro_de_Turismo_ -_Paraguay_2012 -
min.pdf . WT/TPR/S/360 /Rev.1  • Paraguay  
 
- 131 - 
 
  good host, responsible tourism and child tourist campaigns.124 Moreover, Paraguay has set up a 
National Tourism Observatory and Tourism Facilitation Services. The first of these is designed as 
an information tool for monitoring the dynamics, growth and variations of the Paraguayan tourism  
sector, in order to disseminate knowledge for decision -making and planning purposes. The role of 
the second is to deal with immigration formalities and facilitation for tourists and visitors in 
general, from entry to departure.125 
4.4.4.3   Regulatory framework  
4.153.   The g eneral regulatory framework for tourism is composed of the Law on Tourism 
(No. 2.828/05) and its implementing Decree No.  8.111/05, together with Law No.  1.388/98 
establishing SENATUR, the entity responsible for regulating the sector through resolutions. Du ring 
the review period, SENATUR approved several resolutions for the purpose of implementing and 
updating the tourism legislation in accordance with the latest types of provision of tourism 
services. The principal resolutions relating to the sector regulat e the activities of nature, camping, 
rural, fishing, river and lake tourism.126 Likewise, Resolution No.  332/10 regulates enrolment in 
the National Tourism Register, while Resolution No.  925/11 is one of those that regulate the 
exercise of the profession of tourist guide.127 The regulatory framework also establishes penalties 
in the event of infringement of the sector's laws and regulations or the illegal exercise of the 
profession. The penalties may vary from the imposition of fines to a ban on the exercise of  the 
profession or the supply of tourism services.128 
4.154.   To supply tourism services in Paraguay, tourism service providers, whether they be natural 
or legal persons, must be enrolled in the National Tourism Register, and any change relating to 
corporate composi tion, capital and/or management of the office in Paraguay or abroad must be 
reported to SENATUR.129 The provision of hotel and restaurant services is open to foreign 
participation in the cross -border supply, consumption abroad and commercial presence modes. 
The provision of travel agency and tour operator services is authorized for businesses that offer 
tourist services for foreign travellers in Paraguay. The presence of foreign natural persons 
providing tourism services is bound in Paraguay's schedule of spe cific commitments with the WTO 
in the case of senior managers and tourist guides.130 
4.4.4.4   Domestic support  
4.155.   Providers of tourism services in Paraguay duly registered and authorized by SENATUR are 
eligible for certain benefits. These include, for example: facilitat ed participation in national and 
international trade fairs; access to training; access to BNF credit facilities for the tourism sector for 
loans of more than ₲20 million; and access to tax incentives for investment under Law 
No. 60/1990 (section 3.3.1.2).131 Similarly, activities linked with rural tourism, especially tourist 
inns, may be eligible for financing via a CAH credit facility, through which it is possible to obtain 
loans of between ₲3 million and ₲12 million for youth tourism projects and loans of b etween 
₲12 million and ₲50 million for tourist inns.132 
                                                
124 Online information from SENATUR, viewed at: http://www.senatur.gov.py/index.php/campanas ; 
http://www.senatur.gov.py/index.php/programa -campa%C3  per centB1as ; and at:  http://visitparaguay.travel . 
125 Online information from SENATUR, viewed at: 
http://www.senatur.gov.py/index.php/servicios/facilitacion -turistica ; and at: 
http://www.senatur.gov.py/index.php/servicios/observatorio -turistico-nacional . 
126 Online information from SENATUR, viewed at: 
http://www.senatur.gov.py/index.php/institucion/marco -legal. 
127 Online information from SENATUR, viewed at: www.senatur.gov.py . 
128 Decree No.  8.111/06 (Articles 44 -65). 
129 SENATUR Resolution No.  332/10. Viewed at: 
http://www.senatur.gov .py/application/files/5414/7921/9109/Resolucion_332 -2010.pdf ; 
http://www.registurparaguay.gov.py . 
130 WTO document GATS/SC/68; Resolution No.  925 (Articles 30 -34). Viewed at: 
http://www.senatur.gov.py/application/files/5114/7921/9118/RESOLUCION_N_925_Reglamento_Guia_de_Turi
smo.pdf . 
131 Online information from SENATUR, viewed at: http://www.registurparaguay.gov.py/index.aspx . 
132 Online information from SENATUR, viewed at: http://www.senatur.gov.py/index.php/producto -
financiero -enfocado -al-fortalecimiento -del-turismo -rural; http://www.senatur.gov.py/index.php/programa -
campa%C3  per centB1as/turismo -joven ; and  at: http://www.senatur.gov.py/index.php/programa -
campa%C3  per centB1as/posadas -turisticas . WT/TPR/S/360 /Rev.1  • Paraguay  
- 132 - 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section, 2011 -2016  
Description  2011  2012  2013  2014  2015  2016  
 (US$ million)  
Exports  7,764  7,283  9,456  9,636  8,328  8,494 
 (% of exports)  
1 - Live animals; animal products  10.0 11.5 12.0 15.1 15.0 14.5 
02. Meat and edible meat offal  9.7 10.9 11.2 14.2 14.2 13.6 
05. Products of animal origin, not elsewhere specified or 
included  0.3 0.5 0.6 0.8 0.7 0.8 
2 - Vegetable pro ducts  39.0 37.6 36.7 32.2 29.5 31.0 
12. Oil seeds and oleaginous fruits; miscellaneous grains, seeds 
and fruit; industrial or medicinal plants  30.7 22.9 27.7 25.4 20.4 22.3 
10. Cereals  7.7 14.1 8.2 6.4 8.7 8.1 
11. Products of the milling industry; malt;  starches; inulin; 
wheat gluten  0.4 0.4 0.7 0.3 0.2 0.4 
3 - Animal or vegetable fats and oils  4.5 2.7 5.6 5.6 5.8 5.9 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  
and manufactured tobacco substitutes  7.5 5.7 12.0 13.6 12.8 12.0 
23. R esidues and waste from the food industries  5.2 3.0 10.1 11.8 11.3 10.4 
17. Sugars and sugar confectionery  1.2 1.1 0.8 0.8 0.8 0.9 
5 - Mineral products  29.5 31.1 24.0 22.7 25.1 25.6 
27. Mineral fuels, mineral oils and products of their distillation  29.4 31.0 24.0 22.7 25.1 25.6 
6 - Products of the chemical or allied industries  1.0 1.5 1.4 1.1 1.3 1.4 
30. Pharmaceutical products  0.5 0.6 0.6 0.5 0.7 0.5 
7 - Plastics and articles thereof  1.5 1.3 0.9 1.2 1.1 1.0 
8 - Raw hides and skins, leather, furskins and articles  
thereof; saddlery and harness  1.4 1.6 1.8 2.2 2.0 1.6 
41. Raw hides and skins (other than furskins) and leather  1.3 1.5 1.6 2.0 1.8 1.4 
9 - Wood and articles of wood; wood charcoal  1.3 1.2 0.9 0.8 0.9 0.8 
10 - Pulp of wood or of other fibro us cellulosic material;  
paper and paperboard and articles thereof  0.2 0.2 0.2 0.2 0.3 0.3 
11 - Textiles and textile articles  1.7 2.1 1.5 1.6 1.7 1.5 
63. Other made up textile articles; sets; worn clothing and worn 
textile articles; rags  0.3 0.3 0.4 0.6 0.6 0.5 
62. Articles of apparel and clothing accessories, not knitted or 
crocheted  0.4 0.4 0.3 0.3 0.3 0.3 
12 - Footwear, headgear, umbrellas, sun umbrellas,  
walking -sticks, seat -sticks, whips, riding -crops and  
parts thereof; prepared feathers and article s made  
therewith  0.2 0.5 0.4 0.3 0.2 0.1 
13 - Articles of stone, plaster, cement, asbestos, mica  
or similar materials; ceramic products;  
glass and glassware  0.1 0.2 0.2 0.2 0.2 0.2 
14 - Natural or cultured pearls, precious or semi -precious  
stones, precio us metals  0.1 0.4 0.4 0.3 0.5 0.7 
15 - Base metals and articles of base metal  1.0 0.9 0.8 0.8 0.7 0.5 
76. Aluminium and articles thereof  0.1 0.1 0.1 0.2 0.2 0.2 
74. Copper and articles thereof  0.5 0.3 0.3 0.3 0.2 0.2 
16 - Machinery and mechanical appli ances;  
electrical equipment; parts thereof  0.7 1.0 0.7 1.3 1.8 2.0 
85. Electrical machinery and equipment and parts thereof; 
sound recorders and reproducers  0.4 0.4 0.5 1.2 1.6 1.9 
17 - Vehicles, aircraft, vessels and associated  
transport equipment  0.0 0.1 0.3 0.4 0.7 0.5 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments  0.1 0.1 0.2 0.2 0.1 0.1 
20 - Miscellaneous manufactured articles  0.3 0.3 0.2 0.2 0.3 0.2 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.2 0.0 0.0 0.0 0.0 
Note:  The year 2011 is based on the HS07 nomenclature; the years 2012 -2016 are based on the HS12 
nomenclature.  
Source:  WTO Secretariat estimates based on data from the Comtrade database.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 133 - 
  Table A1. 2 Merchandise imports by HS section, 2011 -2016  
 2011  2012  2013  2014  2015  2016  
 (US$ million)  
Imports  12,366  11,555  12,142  12,169  10,291  9,753  
 (% of imports)  
1 - Live animals; animal products  0.5 0.5 0.5 0.6 0.6 0.6 
04. Dairy prod uce; birds' eggs; natural honey; edible 
products of animal origin  0.2 0.2 0.2 0.3 0.3 0.3 
05. Products of animal origin, not elsewhere specified 
or included  0.1 0.1 0.1 0.1 0.2 0.2 
01. Live animals  0.1 0.1 0.1 0.1 0.1 0.1 
02. Meat and edible meat offal  0.0 0.1 0.0 0.0 0.0 0.1 
03. Fish and crustaceans, molluscs and other aquatic 
invertebrates  0.0 0.0 0.0 0.0 0.0 0.0 
2 - Vegetable products  1.2 1.3 1.6 1.1 1.3 1.4 
10. Cereals  0.5 0.6 0.9 0.5 0.4 0.5 
07. Edible vegetables and certain roots and tubers  0.1 0.1 0.1 0.1 0.2 0.2 
11. Products of the milling industry; malt; starches; 
inulin; wheat gluten  0.1 0.1 0.1 0.2 0.2 0.2 
12. Oil seeds and oleaginous fruits; miscellaneous 
grains, seeds and fruit; industrial or medicinal plants  0.3 0.3 0.3 0.2 0.2 0.2 
3 - Animal or vegetable fats and oils  0.2 0.2 0.2 0.2 0.2 0.2 
4 - Prepared foodstuffs; beverages, spirits and vinegar; 
tobacco and manufactured tobacco substitutes  5.8 6.2 5.9 6.6 6.9 7.3 
22. Beverages, spirits and vinegar  1.6 1.7 1.5 1.8 1.9 2.1 
24. Toba cco and manufactured tobacco substitutes  1.4 1.6 1.5 1.6 1.6 1.6 
21. Miscellaneous edible preparations  0.8 0.9 1.0 1.0 1.1 1.2 
19. Preparations of cereals, flour, starch or milk  0.6 0.6 0.6 0.7 0.7 0.7 
5 - Mineral products  14.0 16.7 14.9 16.1 14.3 12.6 
27. Mineral fuels, mineral oils and products of their 
distillation  13.3 16.0 14.3 15.4 13.7 12.0 
25. Salt; sulphur; earths and stone; plastering 
materials, lime and cement  0.6 0.7 0.7 0.7 0.6 0.6 
6 - Products of the chemical or allied industries  12.4 13.1 13.9 14.3 15.8 15.4 
31. Fertilisers  4.5 4.3 4.5 4.6 4.6 4.0 
38. Miscellaneous chemical products  2.5 2.6 3.0 3.2 3.9 3.6 
30. Pharmaceutical products  1.3 1.4 1.5 1.6 2.0 2.4 
33. Essential oils and resinoids; perfumery, cosmetic 
or toilet preparations  1.6 1.9 1.7 1.8 1.6 1.8 
29. Organic chemicals  1.2 1.3 1.6 1.5 1.7 1.5 
7 - Plastics and articles thereof  5.1 4.9 5.2 5.3 6.1 6.2 
39. Plastics and articles thereof  2.8 2.9 3.0 3.2 4.1 4.0 
40. Rubber and articles thereof  2.3 2.0 2.1 2.0 2.0 2.3 
8 - Raw h ides and skins, leather, furskins and articles  
thereof; saddlery and harness  0.3 0.4 0.3 0.4 0.3 0.3 
9 - Wood and articles of wood; wood charcoal  0.1 0.1 0.2 0.2 0.2 0.2 
10 - Pulp of wood or of other fibrous cellulosic material;  
paper and paperboard and articles thereof  2.2 1.9 1.9 2.0 2.4 2.3 
48. Paper and paperboard; articles of paper pulp, of 
paper or of paperboard  2.0 1.7 1.7 1.8 2.2 2.1 
11 - Textiles and textile articles  3.2 3.1 2.9 3.0 3.2 3.2 
61. Articles of apparel and clothing accessories, 
knitted or crocheted  0.6 0.6 0.6 0.6 0.5 0.6 
55. Man -made staple fibres  0.5 0.5 0.5 0.6 0.6 0.6 
12 - Footwear, headgear, umbrellas, sun umbrellas,  
walking -sticks, seat -sticks, whips, riding -crops and  
parts thereof; prepared feathers and articles made  
therew ith 1.0 1.0 1.0 1.1 1.1 1.1 
64. Footwear, gaiters and the like; parts of such 
articles  0.9 0.9 0.9 1.0 1.0 1.0 
13 - Articles of stone, plaster, cement, asbestos, mica  
or similar materials; ceramic products;  
glass and glassware  1.2 1.2 1.3 1.3 1.5 1.5 
69. Ceramic products  0.6 0.6 0.6 0.6 0.7 0.7 
70. Glass and glassware  0.3 0.4 0.4 0.4 0.5 0.5 WT/TPR/S/360 /Rev.1  • Paraguay  
- 134 - 
   2011  2012  2013  2014  2015  2016  
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  0.0 0.0 0.0 0.0 0.0 0.0 
15 - Base metals and articles of base metal  4.5 5.1 5.0 5.7 5.5 5.0 
72. Iron and steel  2.1 2.2 2.4 2.8 2.4 2.0 
73. Articles of iron or steel  1.0 1.3 1.1 1.2 1.1 1.1 
76. Aluminium and articles thereof  0.4 0.7 0.6 0.8 0.9 0.9 
16 - Machinery and mechanical appliances;  
electrical equipment; parts thereof  30.9 28.1 29.0 26.1 24.2 26.8 
85. Electrical machinery and equipment and parts 
thereof; sound recorders and reproducers  16.5 15.2 15.4 13.4 12.7 15.5 
84. Nuclear reactors, boilers, machinery and 
mechanical appliances  14.4 12.9 13.6 12.7 11.5 11.3 
17 - Vehicl es, aircraft, vessels and associated  
transport equipment  10.9 10.0 10.5 10.6 11.1 10.5 
87. Vehicles other than railway or tramway 
rolling -stock, and parts and accessories thereof  10.0 9.2 9.7 10.0 10.3 9.5 
89. Ships, boats and floating structures  0.7 0.6 0.6 0.4 0.6 0.8 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments  1.0 1.1 1.3 1.2 1.3 1.4 
90. Optical, photographic, cinematographic, 
measuring, checking, precision, medical or surgical  
instruments and apparatus  0.8 0.9 1.1 1.0 1.1 1.3 
19 - Arms and ammunition; parts and accessories 
thereof  0.1 0.1 0.1 0.1 0.1 0.1 
20 - Miscellaneous manufactured articles  5.3 4.8 4.1 4.1 3.8 3.7 
95. Toys, games and sports requisites; parts and 
accessories thereof  4.4 3.5 2.8 2.8 2.2 2.0 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.1 0.0 0.0 0.0 0.0 
Note:  The year 2011 is based on the HS07 nomenclature; the years 2012 -2016 are based on the HS12 
nomenclature.  
Source:  WTO Secretariat estim ates based on data from the Comtrade database.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 135 - 
  Table A1. 3 Merchandise exports by trading partner, 2011 -2016  
Description  2011  2012  2013  2014  2015  2016  
 (US$ million)  
Exports  7,776  7,283  9,456  9,636  8,328  8,494  
 (% of exports ) 
America  58.8 61.4 56.1 54.5 55.0 60.7 
United States  1.4 2.1 2.7 2.2 1.8 1.7 
Other America  57.4 59.3 53.4 52.3 53.2 59.0 
Brazil  32.1 39.5 30.1 30.7 31.5 35.4 
Argentina  8.9 7.5 7.3 6.8 6.9 10.7 
Chile 7.0 2.6 5.6 7.0 7.1 6.1 
Uruguay  1.1 1.5 2.0 1.9 1.8 2.5 
Mexico  1.2 1.2 2.9 1.4 1.3 1.3 
Peru 2.8 2.2 2.0 1.3 2.1 1.1 
Bolivia, Plurinational State of  0.7 1.2 0.8 1.1 0.8 0.6 
Venezuela, Bolivarian Republic of  1.4 0.8 0.6 0.4 0.4 0.3 
Ecuador  0.4 0.2 0.2 0.4 0.6 0.3 
Europe  22.7 16.1 18.4 18.0 18.7 16.8 
EU(28)  19.8 14.5 15.0 14.8 17.2 14.0 
Italy 4.3 3.2 3.6 4.0 3.7 3.5 
Germany  7.4 6.0 3.5 1.1 3.5 2.3 
Spain  3.1 2.5 2.3 0.8 1.9 2.1 
Poland  0.1 0.1 0.5 1.3 1.6 1.8 
United Kingdom  0.1 0.1 0.3 0.5 1.2 1.3 
EFTA 0.2 0.1 0.4 0.1 0.1 0.2 
Switzerland  0.2 0.1 0.4 0.1 0.1 0.2 
Other Europe  2.7 1.5 3.0 3.1 1.4 2.6 
Turkey  2.7 1.4 2.9 3.0 1.3 2.5 
Commonwealth of Independent States (CIS)a 5.3 10.0 10.4 11.0 9.3 7.7 
Russian Federation  5.2 9.7 10.0 10.8 9.1 7.6 
Africa  2.9 3.6 3.9 3.3 4.2 2.5 
South Africa  0.1 0.1 0.1 0.0 0.5 1.2 
Egypt  0.5 0.0 0.8 1.1 1.2 0.4 
Tunisia  0.6 0.8 0.6 0.6 0.6 0.3 
Algeria  0.3 0.3 0.9 0.3 0.5 0.2 
Middle East  3.7 3.4 3.3 2.4 3.8 3.2 
Israel  1.9 2.0 1.9 1.4 1.9 1.9 
United Arab Emirates  0.2 1.1 0.9 0.3 0.4 0.3 
Lebanon  0.0 0.2 0.1 0.1 0.2 0.3 
Asia 6.6 5.3 7.9 10.9 9.0 9.1 
China  0.4 0.6 0.6 0.5 0.4 0.2 
Japan  0.7 0.4 0.9 1.1 0.9 0.5 
Other Asia  5.6 4.4 6.4 9.3 7.7 8.4 
India 0.6 0.3 0.6 2.3 2.5 2.3 
Viet Nam  1.0 0.8 0.4 0.7 0.9 1.8 
Bangladesh  0.6 0.6 1.2 1.2 1.1 1.4 
Thailand  0.3 0.2 0.4 1.5 0.3 0.7 
Korea, Republic of  1.4 0.4 0.5 0.6 0.4 0.7 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Memorandum        
Andean Community  4.9 4.3 3.4 3.3 3.6 2.3 
Southern Common Market  43.5 49.3 40.0 39.7 40.6 48.8 
a The Commonwealth of Independent States (CIS ) includ es Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, the Republic of Moldova, the Russian Federation, Tajikistan, Turkmenistan, 
Ukraine, and Uzbekistan.  
Source:  WTO Secretariat estimates based on data from the Comtrade database.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 136 - 
  Table A1. 4 Merchandise imports by trading partner, 2011 -2016  
Description  2011  2012  2013  2014  2015  2016  
 (US$ million)  
Imports  12,366  11,555  12,142  12,169  10,291  9,753  
 (% of imports)  
America  54.1 53.9 51.6 55.9 53.9 52.6 
United States  5.3 8.1 6.5 8.0 7.9 7.2 
Other America  48.8 45.9 45.1 47.9 46.0 45.4 
Brazil  26.4 23.5 26.4 27.8 25.0 24.2 
Argentina  14.1 16.1 13.7 14.0 14.9 14.7 
Chile 1.2 1.3 1.2 1.3 1.6 1.4 
Mexico  1.5 1.5 1.4 1.8 1.5 1.4 
Uruguay  1.6 1.4 1.2 1.1 1.0 1.2 
Panama  0.1 0.1 0.1 0.7 0.8 0.9 
Colombia  0.2 0.2 0.2 0.2 0.2 0.6 
Bolivia, Plurinational State of  0.2 0.3 0.4 0.6 0.4 0.5 
Europe  7.3 7.3 9.3 9.0 9.3 8.9 
EU(28)  6.2 6.6 8.5 8.4 8.5 8.4 
Germany  1.8 1.8 1.9 2.3 2.2 2.3 
France  0.7 0.8 0.9 1.0 1.2 1.2 
Spain  0.7 0.8 0.9 1.0 1.0 1.1 
Netherlands  0.4 0.5 0.8 1.1 1.0 0.9 
Italy 0.6 0.6 0.7 0.7 0.8 0.8 
EFTA 0.8 0.6 0.7 0.2 0.6 0.3 
Switzerland  0.8 0.6 0.6 0.2 0.5 0.3 
Other Europe  0.3 0.2 0.2 0.4 0.2 0.3 
Turkey  0.3 0.2 0.2 0.4 0.2 0.3 
Commonwealth of Independent States 
(CIS)a 0.4 1.6 1.9 1.0 2.3 1.2 
Russian Federation  0.1 1.4 1.8 0.8 2.1 1.0 
Belarus  0.2 0.0 0.1 0.2 0.1 0.2 
Africa  0.2 0.2 0.3 0.3 0.2 0.3 
Morocco  0.1 0.1 0.2 0.2 0.0 0.1 
Zimbabwe  0.0 0.0 0.0 0.0 0.1 0.1 
Middle East  0.2 0.2 0.3 0.2 0.9 0.9 
United Arab  Emirates  0.1 0.0 0.0 0.0 0.2 0.4 
Oman  0.0 0.0 0.0 0.0 0.1 0.2 
Israel  0.1 0.2 0.2 0.0 0.2 0.1 
Asia 37.8 36.3 36.1 33.0 32.8 35.5 
China  29.6 27.6 28.3 25.3 23.5 27.1 
Japan  3.2 2.7 2.3 2.2 2.3 2.5 
Other Asia  5.0 6.0 5.5 5.5 7.0 5.9 
Korea, Republic of  1.8 2.4 2.0 2.2 2.7 2.1 
India 0.6 0.7 0.8 1.0 1.5 1.5 
Hong Kong, China  0.3 0.3 0.3 0.3 0.5 0.5 
Thailand  0.6 0.6 0.6 0.4 0.4 0.4 
Other  0.0 0.5 0.6 0.6 0.6 0.6 
Memorandum        
Andean Community  0.5 0.6 0.6 0.9 0.8 1.2 
Southern Common Market  45.2 42.0 41.3 42.9 41.0 40.0 
a The Commonwealth of Independent States (CIS ) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, the Republic of Moldova, the Russian Federation, Tajikistan, Turkmenistan, 
Ukraine, and Uzbekistan.  
Source:  WTO Secr etariat estimates based on data from the Comtrade database.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 137 - 
  Table A2. 1 Notifications to the WTO, 1  January  2011 to 31  March  2017  
Agreement and 
Article  Requirement  Frequency  Document (most recent 
only if submitted 
regularly)  Date 
Agreement on Trade Facilitation  
Article 15, Section II  Category A commitments  Once only  WT/PCTF/N/PRY/1  25/06/2014  
Agreement on Agriculture  
Articles 10 and 18.2, 
ES:1 Export subsidies  On an annual 
basis G/AG/N/PRY/25  11/08/2016  
G/AG/N/PRY/22  10/02/2015  
G/AG/N/PRY/20  14/12/2012  
G/AG/N/PRY/18  09/06/2011  
Article 18.2, DS:1  Domestic support  On an annual 
basis G/AG/N/PRY/24  11/08/2016  
G/AG/N/PRY/23  04/03/2015  
G/AG/N/PRY/21  09/01/2013  
G/AG/N/PRY/19  05/12/2011  
General Agreement on Trade in Services  
Article III:3  Laws/regulations (transparency; new, or 
any changes to, existing laws, regulations 
or administrative guidelines which affect 
trade in services)  Ad hoc  S/C/N/838  05/11/2015  
S/C/N/837  04/11/2015  
S/C/N/836  05/11/2015  
Article III:4 and/or 
Article IV:2  Enquiry points and contact points  Ad hoc  S/ENQ/78/Rev.16  22/04/2016  
Agreement on Implementation of Article VI of the GATT 1994 (Anti -Dumping Agreement)  
Article 16.4  Anti-dumping actions (preliminary and 
final) Ad hoc  G/ADP/N/293  13/12/2016  
Article 16.4  Anti-dumping actions (semi -annual reports)  Semi-annual  G/ADP/N/294/Add.1  
G/ADP/N/294/PRY  21/04/2017  
10/03/2017  
G/ADP/N/286  15/06/2016  
G/ADP/N/280  18/12/2015  
G/ADP/N/265  12/12/2014  
G/ADP/N/252  16/12/2013  
G/ADP/N/244  13/06/2013  
G/ADP/N/237  20/12/2012  
G/ADP/N/230  14/06/2012  
G/ADP/N/223  21/12/2011  
G/ADP/N/216  29/06/2011  
G/ADP/N/209  05/01/2011  
Anti-Dumping 
Agreement, Article 
16.5; SCM 
Agreement, Article 
25.12  Competent authorities  Ad Hoc  G/ADP/N/14/Add.40 - 
G/SCM/N/18/Add.40  26/10/2015  
GATT 1994  
Article XXVIII:5  Right to modify Schedule XCI  On a triennial 
basis G/MA/309  03/12/2014  
G/MA/247  12/09/2011  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, An nex B  Sanitary/phytosanitary regulations  Ad hoc  G/SPS/N/PRY/23 – 
G/SPS/N/PRY/27  15/07/20111
5/08/2013  
Agreement on Technical Barriers to Trade  
Article 2.10  Technical regulations (urgent)  Ad hoc  G/TBT/N/PRY/45  21/12/2011  
G/TBT/N/PRY/37  21/11/2011  
G/TBT/N/PRY/36  25/10/2011  
Articles 2.10 and 5.7  Technical regulations and conformity 
assessment procedures (urgent)  Ad hoc  G/TBT/N/PRY/35  25/10/2011  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/PRY/86 – 
G/TBT/N/PRY/40  04/02/2016 -
07/12/2011  
Articles 2 .9 and 5.6  Technical regulations and conformity 
assessment procedures  Ad hoc  G/TBT/N/PRY/89  13/12/2016  
G/TBT/N/PRY/88  28/10/2016  
G/TBT/N/PRY/87  15/02/2016  
G/TBT/N/PRY/84  10/08/2015  
G/TBT/N/PRY/83  19/06/2015  
G/TBT/N/PRY/82  19/06/2015  
G/TBT/N/PRY/81  27/03/2015  
G/TBT/N/PRY/34  14/10/2011  
G/TBT/N/PRY/33/Add.1  25/03/2012  
G/TBT/N/PRY/28/Add.1  21/01/2011  
Article 5.6  Conformity assessment procedures  Ad hoc  G/TBT/N/PRY/46  21/12/2011  
G/TBT/N/PRY/32/Add.1  25/03/2011  
Agreement o n Subsidies and Countervailing Measures  
Article 25.11  Countervailing duty actions (taken within 
the preceding six months)  Semi-annual  G/SCM/N/305  15/06/2016  
G/SCM/N/305/Add.1  21/10/2016  
G/SCM/N/298  18/12/2015  
G/SCM/N/298/Add.1  22/04/2016  
G/SCM/N/281  12/12/2014  
G/SCM/N/281/Add.1  24/04/2015  
G/SCM/N/267  16/12/2013  
G/SCM/N/267/Add.1  15/04/2014  
G/SCM/N/259  13/06/2013  WT/TPR/S/360 /Rev.1  • Paraguay  
- 138 - 
  Agreement and 
Article  Requirement  Frequency  Document (most recent 
only if submitted 
regularly)  Date 
G/SCM/N/259/Add.1  18/10/2013  
G/SCM/N/250  20/12/2012  
G/SCM/N/250/Add.1  10/04/2013  
G/SCM/N/242  14/06 /2012  
G/SCM/N/242/Add.1  12/10/2012  
G/SCM/N/235  20/12/2011  
G/SCM/N/235/Add.1/Rev.1  12/10/2012  
G/SCM/N/228  29/06/2011  
G/SCM/N/228/Add.1/Rev.2  26/07/2012  
G/SCM/N/219  05/01/2011  
G/SCM/N/219/Add.1/Rev.2  26/07/2012  
G/SCM/N/212  01/07/2010  
G/SCM/N/212/Add.1/Rev.2  26/07/2012  
Agreement on Import Licensing Procedures  
Article 1.4(a)  Publications  Ad hoc  G/LIC/N/1/PRY/5  18/02/2014  
G/LIC/N/1/PRY/4  18/02/2014  
Article 5.1, 5.2 and 
5.3 Import licensing procedures or changes 
thereto  Ad hoc  G/LIC/N/2/PRY/6  10/08/2016  
G/LIC/N/2/PRY/5  06/07/2015  
G/LIC/N/2/PRY/4  20/01/2015  
G/LIC/N/2/PRY/3  18/02/2014  
G/LIC/N/2/PRY/2  29/11/2013  
G/LIC/N/2/PRY/1  14/07/2011  
Article 7.3  Replies to questionnaire  On an annual 
basis G/LIC/N/3 /PRY/4  05/02/2015  
G/LIC/N/3/PRY/3  15/04/2014  
G/LIC/N/3/PRY/2  29/11/2013  
G/LIC/N/3/PRY/1  05/10/2012  
Article 8.2(b)  Legal texts  Once only/  
Ad hoc  G/LIC/N/1/PRY/7  10/08/2016  
G/LIC/N/1/PRY/6  06/07/2015  
G/LIC/N/1/PRY/3  18/02/2014  
G/LIC/ N/1/PRY/4  18/02/2014  
G/LIC/N/1/PRY/5  18/02/2014  
Source:  WTO Secretariat.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 139 - 
  Table A3. 1 Taxes applicable to imported cargo entering by air  
Air cargo services  Taxes  Legal basis  
General cargo received and 
collected before stor age Fixed fee amounting to 1.3% of the taxable value 
indicated on the customs document.  Decree No.  4.333/15  
Keeping, receiving and 
storing cargo  Percentage of the taxable value according to storage 
time, plus an additional US$1 per m3 or fraction thereof 
occupied:  
Initial period (first 10 days): 1.3%  
Second period (subsequent 12 days): 2.6%  
Third period (30 calendar days or fraction thereof):  4% 
Subsequent period (30 days or fraction thereof): 5%  Decree No.  8.701/12  
Cargo of undetermined 
value (whether or  not in 
storage)  The fee most beneficial to DINAC, either:  
(a) a fixed fee of US$1.30 plus VAT per gross kg or 
fraction thereof (in all cases, this amount is payable in 
advance); or  
(b) 1.30% plus VAT on the taxable value established by 
the customs technic al valuation unit in the detailed 
declaration (import clearance document) processed at 
the customs point where the inward clearance of the 
goods took place.  Decree No.  4.333/15  
Cargo of undetermined 
value in cold storage or 
special cargo  Cargo in cold st orage or identified as special cargo: 
US$1.70 per gross kg or fraction thereof, plus an 
additional US$1 per m3 or fraction thereof occupied.  Decree No.  4.333/15  
Private cargo regime 
(pacotilla )  3% of the taxable value determined by the customs 
authority.  Decree No.  8.701/12  
Private cargo ( pacotilla ) in 
storage  Fixed fee amounting to 1.3% of the taxable value 
indicated on the customs document.  Decree No.  8.701/12  
Source:  Information provided by the National Civil Aviation Directorate (DINAC).  WT/TPR/S/360 /Rev.1  • Paraguay  
- 140 - 
  Table A4. 1 Current MAG programmes, 2016  
Programme/project  Description  
National Biofuels Programme 
(PNBIO)  Seeks to increase the participation of biofuels in Paraguay's energy 
matrix. MAG provides technical assistance to sugar cane produ cers with 
a view to ethanol production.  
Sustainable Rural Development 
Project (PRODERS)  Technical assistance in the areas of planning, production and marketing 
for producers and members of indigenous communities.  
Project for the Integration of Family 
Farming in Value Chains (PPI)  Seeks to ensure the sustainable integration of family farming into value 
chains through representative social organizations, while taking into 
account gender -sensitive and environmental concerns.  
Modernization of Public Agricult ural 
Support Management (PAGRO)  Payments to assist producers in implementing certain techniques: 
liming, subsoiling, green manure, direct sowing, bio -fertilizer, seed 
selection, grain conservation, and citrus tree planting. Action to combat 
leaf-cutter ant s. Introduction of irrigation systems with a view to 
improving soil fertility.  
Programme to Promote Food 
Production through Family Farming 
(PPA)  Seeks to ensure the sustainable integration of family farming into value 
chains through family farming organiz ations.  
Project on Food Security for 
Resource -Poor Farmers (2KR)  Improvement of production in the agricultural, livestock, fishery and 
forestry sectors. Funding of projects in these areas.  
National Livestock Development 
Programme (PRONAFOPE)  Implementati on of livestock production and aquaculture programmes.  
Family Farming Support Directorate 
(DAAF)  Allocation of financial resources to transform family farms into 
competitive and self -sustaining productive units.  
Equipment for Agricultural 
Production in P araguay Project 
(PEPAP)  Modernization of agricultural production.  
Source:  Information provided by MAG.  WT/TPR/S/360 /Rev.1  • Paraguay  
- 141 - 
  Table A4. 2 Level of openness of commercial air routes by air transport agreement, 2017  
Partner  Year of 
signature  Between t erritories of 
the parties  
3rd and 4th freedoms  Between counterparty 
territory and third countries  
5th and 6th freedoms  From 
counterparty 
territory to 
third countries  
7th freedom  Within 
counterparty 
territory  
Cabotage  
Germany  1974 One flight/week  Without r ights Without rights  Without rights  
Saudi 
Arabia  2013 No restrictions (point in 
Dammam, open skies)  5th freedom – subject to 
agreement between the parties 
(point in Dammam, open skies)  No restrictions 
(point in 
Dammam)  Without rights  
Argentina  2006 28 flights/week 
(en route: points in 
Latin America, points in 
Paraguay, points in 
Argentina: Buenos 
Aires, Mendoza)  28 flights/week. Non -regular 
and all -cargo operations are 
authorized on a reciprocal basis 
(en route: other points in Latin 
America, Miami, point s in 
Europe and points in Canada)  Without rights  Without rights  
Australia  2012 With code -sharing 
arrangement only  5th freedom - with code -sharing 
arrangement only  
6th freedom - without rights  Without rights  Without rights  
Austria  2012 No restrictions  5th freedom – subject to 
agreement between the parties  
6th freedom - without rights  Without rights  Without rights  
Belgium  1972 No restrictions  5th freedom - no restrictions  
6th freedom - without rights  Without rights  Without rights  
Bolivia  1958 and 
2010 No restrictions  5th freedom - without rights  
6th freedom - no restrictions  Without rights  Without rights  
Brazil  2015 No restrictions  No restrictions  Without rights  Without rights  
Canada  2012 No restrictions  5th freedom - with code -sharing 
arrangement  
6th freedom - without rights  Without rights  Without rights  
Chile 2005 Open skies  Open skies  Open skies  Open skies  
Colombia  2010 No restrictions  5th freedom – no restrictions on 
American continent, cargo only  
6th freedom – no restrictions  Without rights  Without  rights  
South Korea  2012 No restrictions  5th freedom – no restrictions  
6th freedom - without rights  Without rights  Without rights  
Costa Rica  2001 No restrictions  5th freedom - to be determined 
by agreement between the 
parties  
6th freedom - without rights  Without rights  Without rights  
Cuba 1998 No restrictions subject 
to agreement between 
the parties  Without rights  Without rights  Without rights  
Curaçao  2013  No restrictions  No restrictions  No restrictions, 
cargo only  Without rights  
Denmark, 
Norway, 
Sweden 2013 No restrictions  5th freedom – no restrictions  
6th freedom - without rights  Without rights  Without rights  
Ecuador  1994 Seven flights/week  5th freedom – seven flights/week  
6th freedom - without rights  Without rights  Without rights  
United Arab 
Emirates 2006 Open skies  Open skies  Open skies  Without rights  
Spain  2015 Two flights/week  5th freedom – seven flight s/week  
6th freedom - without rights  Without rights  Without rights  
United 
States  2005 Open skies  Open skies  Open skies  Without rights  
France  2013 Without rights  5th freedom – with code -sharing 
arrangement  
6th freedom - without rights  Without rights  Without rights  
Iceland  2011 No restrictions  No restrictions  No restrictions  No restrictions  
Italy 1985 No restrictions  Without rights  Without right s Without rights  
Jamaica  2011 No restrictions  No restrictions  No restrictions 
for all -cargo 
services  Without rights  
Jordan  2011 No restrictions  5th freedom – no restrictions  
6th freedom - without rights  Without rights  Without rights  
Kuwait  2011 No restr ictions  No restrictions  No restrictions  Without rights  
Luxembourg  2013 No restrictions  No restrictions  7th freedom 
subject to 
agreement 
between the 
parties  Without rights  
Malaysia  2013 No restrictions  No restrictions  Without rights  Without rights  
Mexico  2014 14 flight/week  5th freedom – with 
administrative permit  
6th freedom - without rights  Without rights  Without rights  
New 
Zealand  2012 No restrictions  No restrictions  No restrictions  No restrictions  WT/TPR/S/360 /Rev.1  • Paraguay  
- 142 - 
  Partner  Year of 
signature  Between t erritories of 
the parties  
3rd and 4th freedoms  Between counterparty 
territory and third countries  
5th and 6th freedoms  From 
counterparty 
territory to 
third countries  
7th freedom  Within 
counterparty 
territory  
Cabotage  
Netherlands  2013 14 flights/week  5th freedom - 14 flights/week  
6th freedom - without rights  Without rights  Without rights  
Panama  2005 No restrictions  No restrictions  7th freedom 
limited to 
all-cargo 
services  Without rights  
Peru 2001 Seven flights/week  5th freedom – with 
administrative permit  
6th freedom – without rights  Without rights  Without rights  
Qatar  2011 Open skies  Open skies  Open skies  Open skies  
United 
Kingdom  2012 No restrictions  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Czech 
Republic  2012 No restrictions  No restrictions  Subject to 
agreement 
between the 
parties  Without rights  
Dominican 
Republic  2010  No restrictions  No restrictions  Cargo services 
only Without rights  
Senegal  1988 No restrictions  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Singapore  2011  Open skies  Open skies  Open skies  Open skies  
South Africa  2013 Seven flights/week  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Sudan  2013 No restrictions  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Switzerland  2006 No restrictions  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Chinese 
Taipei  1997 No restrictions  5th freedom - no restrictions  
6th freedom - without rights  Without rights  Without rights  
Turkey  2011 14 flights/week  5th freedom – subject to 
agreement between the parties  
6th freedom – without rights  Without rights  Without rights  
Uruguay  2014 Open skies  Open skies  Open skies  Open skies  
Venezuela  1992 Four flights/week  5th freedom – two flights/week  
6th freedom – without rights  Without righ ts Without rights  
Source:  Information provided by DINAC.  
__________