WT/TPR/M/360  
29 November  2017 
(17-6489) Page: 1/45 
Trade Policy Review Body  
20 and 22 September 2017   
 
  TRADE POLICY REVIEW  
PARAGUAY  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F PARAGUAY  ................................ .. 4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  9 
4  STATEMENT S BY MEMBERS  ................................ ................................ ........................  15 
5  REPLIES BY THE REPRE SENTATIVE OF PARAGUA Y AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  37 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  44 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Paraguay  are reproduced in document WT/TPR/M/ 360/Add.1  and will be available 
online at http://www .wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/360 • Paraguay  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fourth trade policy review (TPR) of Paraguay took place on 20 and 22 September 2017. 
The Chairperson , H.E. Ambassador Juan Carlos Gonzalez (Colombia) welcomed the de legation of 
Paraguay, led by H.E. Ambassador Luis Fernando Ávalos, Vice -Minister for Economic Relations and 
Integration in the Ministry of Foreign Affairs, and the discussant, H.E. Ambassador Héctor 
Casanueva (Chile).  
1.2.  The Chairperson  recalled the purpose o f trade policy reviews and the main procedures for the 
meeting. The report by Paraguay was contained in document WT/TPR/G/360 and that of the WTO 
Secretariat in WT/TPR/S/360.  
1.3.  Written questions fr om the delegations of Argentina; Australia; Brazil; Canada; Chile; 
Colombia; Dominican Republic; European Union; Mexico;  and the United States had been 
submitted within the deadline. Written questions fro m the delegations of Costa Rica;  Ecuador and 
Thailand had been submitted after the deadline.  
1.4.  During the previou s TPR meeting, Members had praised Paraguay for its outstanding 
economic performance. In its report for the current review, the Secretariat noted the continued 
robust economic performance over the period covered, with real GDP growing at an average 
annual rate of 4.7% in 2011 -2016. At the time of the previous review, Members had invited 
Paraguay to diversify its export products and markets to lower its vulnerability to external shocks. 
Members would undoubtedly be interested to learn more about the initiati ves taken by the 
Government of Paraguay to ensure continued economic growth and the strategies aimed at 
diversifying the country's trade in terms of export products and destinations.  
1.5.  At the time of the 2011 review, Paraguay had been commended for the low l evels of tariff 
and other protection and for its efforts to streamline the business environment and facilitate trade. 
On the other hand, several Members had urged Paraguay to relax certain prior registration and 
licensing requirements and to eliminate cons ular fees and the requirement to use customs brokers. 
The 2017 Secretariat report noted that in recent years a number of further trade facilitation 
initiatives had been implemented and that Paraguay had ratified the WTO Agreement on Trade 
Facilitation. In some of their questions concerning this review, Members sought further clarification 
on Paraguay's import and export licensing regimes and wanted to know when the "valuation fee" 
and the reference value used for clothing products would be eliminated.  
1.6.  With respect to Paraguay's intellectual property rights regime, in 2011 Members had urged 
Paraguay to strengthen enforcement and to undertake legislative reforms in the areas of patents 
and geographical indications. According to the 2017 Secretariat report, Pa raguay had enacted a 
series of decrees to implement laws governing patents, copyright and related rights and 
trademarks during the review period, also adopting a new law on geographical indications and 
designations of origin and establishing the National I ntellectual Property Directorate. Several of the 
questions submitted by Members for the current review referred to Paraguay's intellectual property 
regime, and Members would undoubtedly be interested to receive further information concerning 
the implementa tion of these legislative and institutional reforms and the country's intellectual 
property strategy in the course of the meeting.  
1.7.  In the previous review of its trade policies, Paraguay had also been encouraged to improve 
the transparency of its government  procurement regime, to reconsider the preferences granted for 
domestic products, and to envisage joining the WTO Plurilateral Agreement on Government 
Procurement. According to the 2017 Secretariat report, over the review period Paraguay had 
continued to m odernize its legislative framework in order to make government procurement 
procedures more flexible and transparent. Several of the questions submitted by Members for the 
current review sought to obtain further details on the procedures applied.  
1.8.  Another s ubject of interest in the 2011 TPR had been that of Paraguay's incentive schemes to 
attract investment and promote exports, including an analysis of the related costs and benefits. 
Various Members had urged Paraguay to notify these schemes to the WTO. This  continued to be an 
area of interest to Members in the current review, with various questions relating to VAT 
exemptions applied, Paraguay's free zone and maquila regimes, and incentives offered under the WT/TPR/M/360 • Paraguay  
 
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  national automotive policy. Some Members reiterated  a call for Paraguay to notify its incentive 
programmes to the WTO.  
1.9.  With respect to competition policy, in 2011 Members had encouraged Paraguay to adopt 
competition policy legislation to improve business predictability and attract foreign direct 
investment . The 2017 Secretariat report noted the enactment of a competition law in 2013 and the 
issuing of its implementing Regulations. A National Competition Commission was up and running 
and had already analyzed  a number of mergers and concluded other investigat ions. Several 
Members submitted questions concerning competition legislation and its application and would 
undoubtedly welcome additional information on institutional developments in this regard.  
1.10.   During Paraguay's preceding trade policy review, Members had  also suggested that the 
country could benefit from further services liberalization in areas such as transport and 
telecommunications. Several questions from Members in the current review were aimed at 
obtaining further details about policies on services, especially financial, telecommunications, 
energy and tourism services.  
1.11.   Lastly, in the context of the present review, other areas in which Members' questions stated 
an interest in receiving more information were: the new legislation on electronic commerce; 
agriculture; regional and preferential trade agreements; various aspects of Paraguay's investment 
regime; and SPS and TBT issues.  
1.12.   There was certainly a wide range of topics on which to expand in the current review, and the 
Chairperson  looked forward to an  interesting and fruitful exchange of views.  WT/TPR/M/360 • Paraguay  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F PARAGUAY (H.E. AMBAS SADOR 
LUIS FERNANDO ÁVALOS ) 
Opening remarks  
2.1.  First of all, we would like to express special thanks to the delegations of countries that are 
friends of Paraguay for their presence in this room and for their interest in our country. Our thanks 
also go to Ambassador Juan Carlos Gonzalez for chairing this meeting and for his introductory 
remarks, and to the Permanent Representative of Chile, Ambassador Hé ctor Casanueva, who is 
doing us the honour of acting as our discussant.  
2.2.  The interest evidenced by our receiving close to 150 questions reflects, as I have just said, 
growing interest in our country's share of trade. Particular thanks are due to the WTO Sec retariat 
for its comprehensive and excellent report.  
2.3.  The delegation of Paraguay is composed of senior officials of the Ministries of Industry and 
Trade, Finance, and Foreign Affairs, the Central Bank of Paraguay, the National Customs 
Directorate, and, as g oes without saying, skilled personnel from the Permanent Mission of 
Paraguay to the World Trade Organization.  
Introduction, economic environment  
2.4.  I would like to begin my statement by emphasizing that Paraguay experienced profound 
changes during the period under review, recording levels of economic growth and social 
development that trended strongly upwards, as evidenced not only by the economic indicators 
published by the various international organizations and agencies but also by the impact they had 
on pe ople's daily lives.  
2.5.  The fourth WTO trade policy review of Paraguay is an opportunity to take a detailed look at 
the country's trade policies over the past six years, underpinned by Paraguay's National 
Development Plan 2030, whose objectives are to consolid ate the foundations for high, sustainable 
and socially inclusive economic growth. In designing and implementing this Plan, the Paraguayan 
Government focused on three main lines of action: poverty reduction and social development; 
inclusive economic growth;  and the country's presence on the global scene.  
2.6.  World economic developments saw major volatility on financial markets, uncertainty over 
international commodity prices, and the resurgence of protectionist measures. The period also saw 
a slowdown in region al and global economic growth, compounded by serious questioning of free 
trade and multilateralism. Nonetheless, Paraguay's economic performance has been positive, 
underpinned by sound macroeconomic fundamentals, more buoyant domestic demand, conditions 
conducive to external finance and a considerable rise in exports, especially of oilseeds, meat 
products, and a vast supply of clean and renewable electricity. The Paraguayan economy has been 
marked by a high level of openness to trade (72% of GDP) and free m ovement of capital, with the 
country starting to tap the international capital market during the review period, with long -term 
and low -cost issuances that bear witness to investor confidence.  
2.7.  The level of economic activity in Paraguay during the period und er review was influenced by 
the design and implementation of market -oriented economic policies that made for an excellent 
business climate, together with good harvests for the main crops, a steady increase in livestock 
production, the opening of new market s, an expansion of manufacturing and a rise in public and 
private construction, among other factors.  
2.8.  Annual growth in real GDP averaged 4.8% between 2011 and 2016, and in 2013 was the 
second highest in the world, at 14%. The services sector is the chief co mponent of GDP, with a 
43.9% share in 2016, followed by the agricultural sector (agriculture, livestock, forestry and 
fisheries), accounting for 25.2% of GDP, and manufacturing, which represented 10.7%. Paraguay 
is the world's sixth largest producer of soy a bean and by -products, and the 14th largest producer of 
fresh or chilled meat. It is the world's top exporter of clean and renewable electricity, the 
fourth  largest exporter of oilseeds, the seventh largest exporter of frozen beef, and the 
ninth largest e xporter of maize and rice.  WT/TPR/M/360 • Paraguay  
 
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  2.9.  Exports and imports of goods and services accounted for 83.7% of GDP in 2016, and the 
volume of exports has increased in relation to the preceding review period.  
2.10.   Paraguay's situation as a landlocked developing country has histor ically shaped its policies, 
since its geographical location may entail additional costs, affect connectivity and thus constitute a 
drawback as we seek to do business. Our reaction to these circumstances is to work actively on 
integrating into the global ec onomy. We support the adoption and entry into force of the Trade 
Facilitation Agreement, and in parallel we are seeking to develop policies to promote structural 
economic transformation. We are striving to generate greater value added for our production in  
order to mitigate the impact of our export transport costs and are promoting investment in 
infrastructure to increase our connectivity. Our aim is to become a platform for doing business in 
MERCOSUR and Latin America generally.  
2.11.   We are very proud to say th at in recent years Paraguay has become the fastest growing 
economy in MERCOSUR.  
Main economic reforms  
2.12.   I would now like to focus on the key reforms which the National Government adopted in the 
past six -year period and which form part of the aforementioned l ong-term strategy aimed at 
achieving high, sustainable and inclusive growth:  
i. Paraguay introduced the Law on public -private partnership1, which seeks to promote 
investment in public infrastructure and the provision of services through public -private 
partner ship. The Law also promotes investment in the production of goods and the 
provision of public services.  
ii. A new Law on the protection of investment2 was enacted in order to promote investment 
in capital -intensive industries. It protects the remittance of ca pital and profits and 
provides guarantees against administrative and judicial practices that could be deemed 
discriminatory.  
iii. Paraguay introduced domestic legislation on electronic commerce3, whose purpose is to 
regulate trade and procurement carried out b y electronic or technologically equivalent 
means. This legislation confers legal force and validity on contracts entered into remotely 
by electronic means and recognizes the validity of electronic invoicing for accounting and 
tax purposes.  
iv. The Law on micro , small and medium -sized enterprises4 was enacted in order to provide 
a regulatory framework to promote and foster the establishment, development and 
competitiveness of MSMEs, with a view to integrating them into the formal structure for 
producers of goods  and services as well as into international markets.  
v. The Law on the protection of competition5 was enacted to protect and promote free 
market competition and to prohibit and punish abuse of a dominant position and regulate 
mergers. The National Competitio n Commission was created under that Law.  
vi. Paraguay adopted the Law on consumer protection6, which established the Secretariat of 
Consumer and User Protection.  
vii. It also adopted the Law on fiscal responsibility7, which limits the central government 
deficit to 1.5% of GDP and provides that the annual increase in primary current 
                                                
1 Law No. 5102/13 on the promotion of investment in public infrastructure and the expansion and 
upgrading of goods and services provided by the State.  
2 Law No. 5542/15 on investment guarantees, the promo tion of job creation, and economic and social 
development.  
3 Law No. 4868/ 13 on electronic commerce.  
4 Law No. 4457/12 on micro, small and medium -sized enterprises.  
5 Law No. 4956/13 on the protection of competition.  
6 Law No. 4974/13 on the Secretariat o f Consumer and User Protection.  
7 Law No. 5098/13 on fiscal responsibility.  WT/TPR/M/360 • Paraguay  
 
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  expenditure for the public sector may not exceed the year -on-year inflation rate plus 4%. 
As a result the deficits in the overall central government balance have been moderate.  
viii. The Law o n free public access to public information and transparency in government8 was 
enacted in order to promote transparency on the part of the State and guarantee the 
right of access to public information for all by implementing procedures, time -frames, 
deroga tions and penalties.  
ix. The National Intellectual Property Directorate (DINAPI)9 was established as the institution 
responsible for implementing national policy on intellectual property and for the 
administrative enforcement of the rules safeguarding intelle ctual property rights.  
x. Paraguay ratified the WTO Agreement on Trade Facilitation10 and established the National 
Trade Facilitation Committee, which comprises various institutions involved in trade 
operations and representatives of the private sector.  
xi. It also introduced a series of facilitation mechanisms to enhance the business climate and 
boost production and technological development.  
xii. It enacted a Law establishing rules on transparency with respect to joint -stock 
companies, leading to the elimination of p ublic limited companies and thus increasing 
transparency.  
xiii. I would also like to emphasize that since March 2017, Paraguay has been part of the 
Development Centre of the Organisation for Economic Co -operation and Development 
(OECD), an international forum t hat will enable the country to coordinate the design and 
implementation of public policies and good practice to maximize inclusive growth and 
economic and social development, and to receive advice and share experiences via a 
platform for dialogue with OECD  member countries.  
xiv. As part of its work with the OECD, Paraguay's multi -dimensional country and public 
governance reviews have begun. This is aimed at underpinning the design of public 
policies and strategies that promote development in a holistic sense, a nd at improving 
the efficiency and sustainability of government functions. Likewise, Paraguay is 
participating in various OECD initiatives, such as the Global Forum on Transparency and 
Exchange of Information for Tax Purposes  and the Base Erosion and Profi t Shifting 
(BEPS) Project.  
Commitments to the multilateral trading system  
2.13.   During the period under review, Paraguay actively participated in the negotiations taking 
place in the World Trade Organization (WTO), especially those concerning the packages agreed  at 
the Bali (2013) and Nairobi (2015) Ministerial Conferences. It should be noted that Paraguay 
played an active role in the discussions to reach the Agreement on Trade Facilitation and the 
Decision on Export Competition in agriculture.  
2.14.   Paraguay is in fav our of strengthening of the WTO's negotiating pillar and is therefore a 
member of various negotiating groups; it also coordinates the Group of Landlocked Developing 
Countries. We are confident that the Agreement on Trade Facilitation will become a key tool  in 
reducing the logistics costs of international trade, especially the additional costs incurred by 
landlocked developing countries as a result of transit procedures through third countries.  
2.15.   Paraguay attaches considerable importance to the three pillars o f the agriculture 
negotiations (market access, export subsidies and domestic support) in achieving genuine 
liberalization and reform of agricultural markets. It considers it important to secure positive 
outcomes on domestic aid and market access at the for thcoming Ministerial Conference in 
Buenos  Aires.  
                                                
8 Law No. 5282/14 on free public access to public information and transparency in government.  
9 Law No. 4798/12 establishing the National Intellectual Property Directorate (DINAPI ). 
10 Law No. 5564/16 adopting the Protocol amending the Marrakesh  Agreement Establishing the WTO.  WT/TPR/M/360 • Paraguay  
 
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  2.16.   Paraguay is active in discussions on topics relating to current trade developments such as 
electronic commerce, investment facilitation, and support for micro, small and medium -sized 
enterprises. In this reg ard, it has co -sponsored a number of documents and concept notes on 
these issues.  
2.17.   Paraguay also believes that the dispute settlement system  and the Appellate Body in 
particular, should remain in continuous operation. This is the only way to ensure proper application 
of the agreements.  
MERCOSUR  
2.18.   Another significant feature of Paraguay's trade policy is its membership of MERCOSUR, of 
which it is a founder member and which constitutes one of the mainstays of its foreign policy, its 
main regional integration ob jective, and its platform for the negotiation of regional agreements. 
Paraguay has embarked on a process of deeper integration into MERCOSUR and focuses on 
achieving the objectives set out in the Treaty of Asunción.  
2.19.   MERCOSUR remains important as a destina tion and origin of exports and imports and is 
Paraguay's chief trading partner. Between 2014 and 2016 the share of exports to the bloc rose 
from 39.35% to 48.09% of Paraguay's total, while the share of imports fluctuated between 
40.05% and 43.14%.  
2.20.   Paragua y uses the MERCOSUR common external tariff (CET), which constitutes the base 
applied to imports from outside the MERCOSUR area save for case -by-case exceptions authorized 
by the bloc. These exceptions allow Paraguay to apply tariffs that are lower than the  CET to 
imports originating outside the area, thus maintaining the profile of an economy that is open to 
the rest of the world.  
2.21.   It should be noted that, as a member of MERCOSUR, Paraguay jointly negotiates trade 
agreements at both intra - and extra -regiona l levels, including with developed and emerging 
economies.  
2.22.   MERCOSUR and the Pacific Alliance have a mechanism for dialogue under which they 
explore areas of common interest in relation to regional economic integration. Work streams have 
been identified in trade facilitation, customs cooperation, trade promotion, support for SMEs, and 
possible regional value chains.  
Questions raised by Members  
2.23.   Before concluding, I would like to address the questions raised by Members for this review, 
which concerned a varie ty of issues. We welcome the Membership's interest in Paraguay and 
above all our trading partners' expectations of our performance.  
2.24.   In this connection, I would like to make the following points:  
a. The creation of the National Intellectual Property Director ate (DINAPI) gave rise to a 
number of legislative developments that led to greater and more efficient regulation of 
patents, copyright and related rights and trademarks. Protection was enhanced under the 
National Intellectual Property Plan Paraguay 2030, w hich serves as a roadmap to 
strengthen the intellectual property system and make it more effective as a smart tool for 
combating poverty and fostering the country's economic, social and cultural 
development. The Plan also has the overarching objective of c onsolidating the intellectual 
property system – intellectual property being a generator of value – as a component of 
the production sector, science, the arts and technology, thus building awareness of an 
image associated with respect for intellectual prope rty rights. We do nonetheless 
acknowledge that there is still a long way to go.  
b. Paraguay has bound 100% of its tariff lines (all ad valorem ) in the WTO; tariffs are 
applied according to the most -favoured -nation (MFN) principle, and MFN treatment is 
granted  to imports. Work is under way to streamline import, export and marketing 
procedures, pursuant to the commitments made under the Trade Facilitation Agreement. WT/TPR/M/360 • Paraguay  
 
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  In this connection, I would like to emphasize that the National Trade Facilitation 
Committee met for the first time last week. It will operate as a public -private forum 
aimed at implementing measures to help facilitate trade operations, reduce costs, 
increase the country's competitiveness and serve as a space where private -sector 
concerns relating to foreign trade, and transit procedures in particular, can be addressed.  
c. Paraguay's current investment regimes aim to foster innovation and economic 
development, with a focus on successful inclusion and social participation, which will also 
make economic ope rators more competitive, thus enabling them to access international 
markets and, chiefly, to become integrated in regional and global value chains.  
Conclusions  
2.25.   We are convinced that the measures I have just described have put us on the right path to 
making  our economy more competitive and turning international trade into a catalyst for inclusive 
development in Paraguay.  
2.26.   Paraguay hopes that these reforms, along with other changes yet to be implemented, will 
help to promote structural change in its economy by  expanding production, broadening the range 
of exports, generating greater value added for our products, and integrating Paraguayan 
businesses into regional and global value chains.  
2.27.   Accordingly, the National Government's priority is to continue to increas e public investment 
and enhance the business climate to create conditions conducive to innovation and 
entrepreneurship within a market economy framework.  
2.28.   The policy instruments used by Paraguay are designed to generate trade flows governed by 
transparent,  non-discriminatory rules. Paraguay therefore reaffirms its commitment to the 
multilateral trading system and its active participation in the negotiations conducted at the WTO.  
2.29.   We know that we still have important challenges to address. The international e conomic 
system has to lay the foundations for development, particularly in this Organization, where 
progress needs to be made towards real reform of the world trading system, especially in 
agriculture.  
2.30.   Paraguay will continue to move towards deeper regional  integration through MERCOSUR and 
will seek to expand its trade relations with third countries in order to increase its access to new 
markets and pursue its objective of being an economy open to the outside world.  
2.31.   I would like to conclude by reiterating o ur thanks to WTO Members for their interest and 
valuable participation in this fourth review of Paraguay's trade policies. My delegation will be 
happy to respond to each of your comments or questions. Thank you.  WT/TPR/M/360 • Paraguay  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Before I begin,  and I believe all of you will agree, I would like say that our thoughts are with 
Mexico after yesterday's horrendous earthquake, the second to hit the country in three weeks, and 
to express all our solidarity in the face of this renewed tragedy.  
3.2.  I welcom e my Paraguayan friends and am very pleased that they have come to Geneva. I 
have said this to them in Guaraní, which is one Paraguay's two official languages.  
3.3.  It is an honor  for me to serve as discussant in this fourth review of Paraguay's trade policies.  
I thank the Secretariat, the Chairman of the Trade Policy Review Body and the Permanent Mission 
of Paraguay for suggesting that I assume this task, which allows me to deepen my knowledge of 
the country's development process while at the same time endeavor ing to contribute to the 
analysis of its performance by highlighting aspects that are relevant today and for the future.  
3.4.  I am happy to note that "Building the future today" is precisely the motto chosen for its 
official website.  
3.5.  My analysis will focus on three main areas: institutional and socio -economic environment; 
trade policy and commitment to the multilateral trading system; and conclusions and 
recommendations.  
3.6.  I shall base my analysis on the comprehensive reports of the WTO Secretariat and the 
Govern ment of Paraguay, highlighting the features that stood out for me in forming an opinion to 
share with you all, in my personal capacity.  
3.7.  More information – which I will not repeat here – can be gleaned from a full reading of these 
reports. I have also taken  into account a few indicators from relevant sources within the 
international system and recognized think tanks.  
3.8.  I would like to begin by emphasizing some interesting background features about Paraguay, 
which will be useful in appreciating its current situ ation and potential for development.  
3.9.  Paraguay is the eighth largest country in South America, larger than Japan, Germany, Finland 
or Switzerland, to quote but a few examples. It lies at the heart of the continent, midway between 
the Atlantic and Pacific oc eans. Its outlet to the Atlantic is via the Paraguay and Paraná rivers.  
3.10.   In round figures, the country has a population of seven million, 60% of whom live in urban 
areas – as is the trend worldwide – and its capital, Asunción, is one of Latin America's larg er cities, 
with close to two million inhabitants.  
3.11.   This is a major public policy challenge for Paraguay, since it has to address the needs of a 
very big city in terms of infrastructure, food, transport, community services, public security and 
supplies.  
3.12.   According to the Constitution, Paraguay is a multicultural and bilingual country, Spanish and 
Guaraní being the two equally official languages. Guaraní is spoken by 90% of the population, and 
73% speak both official languages. Guaraní is also an official langu age within MERCOSUR.  
3.13.   This is an advantage, because, as we all know, language is not only a way of speaking but 
also a way of knowing and understanding the world and communicating ideas, values and 
interests. It is therefore important to recall that Guaran í has been kept alive in Paraguay through 
the centuries, so that today almost everyone uses it alongside Spanish in everyday life. In my 
opinion, this reality reflects a feature specific to Paraguayans, a form of dual awareness that 
explains many events in  the country's history and political evolution, marked by dramatic events 
and the defense  of its identity at all costs, of which perhaps the most telling example was the war 
in the 19th century, which decimated 50% of the country's inhabitants and 80% of i ts male 
population. Paraguay was nonetheless able to recover and gradually resume the path to 
development halted by the conflict.  WT/TPR/M/360 • Paraguay  
 
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  3.14.   Paraguay is a biodiversity - and environmentally -rich country, which represents a 
development opportunity that should be used to advantage through appropriate public policies. In 
addition to rivers, Paraguay also has wetlands and lakes. It is party to the RAMSAR Convention 
and has listed six wetlands, extending over close to 800,000 hectares, as RAMSAR sites.  
3.15.   It also has the Guar aní Aquifer, a subterranean reservoir and the third largest reserve of 
freshwater in the world, located beneath the surface of Paraguay, Argentina, Brazil and Uruguay, 
which supplies some 200 localities and is protected by an agreement with the other MERCO SUR 
countries.  
3.16.   However, Paraguay's entire environmental potential, which is of ever -increasing present and 
future economic importance, is under threat, and one of the conclusions that may be drawn is that 
an even more aggressive and vigilant institutional stance is needed. It is estimated that Paraguay 
has lost almost 90% of its original forest coverage as a result of the expansion of livestock and 
crop activities.  
3.17.   At the end of this statement, I will highlight some other aspects which seem to me to be 
relevant in looking ahead to the future.  
Institutional and socio -economic environment  
3.18.   Paraguay has experienced macroeconomic stability in recent years; a major effort has been 
made to modernize the State, accompanied by an aggressive policy of openness and int ernational 
integration aimed at creating a favorable  investment climate.  
3.19.   Significant strides have been made in combating legal insecurity and corruption by 
implementing transparency laws, adopting prudent fiscal policies and investing in the 
infrastructur e necessary to boost growth and lower logistics costs.  
3.20.   The Government's commitment to and achievements made on the path of modernization  of 
the country must be acknowledged, and the aforementioned aspects are critical to this task.  
3.21.   Paraguay's sound macroec onomic management over the review period is, in my view, 
worthy of note. The reports indicate that macroeconomic stability continued to underpin growth, 
which is one of the highest in the region and worldwide. Inflation was held down by an 
inflation -target ing scheme implemented by the Central Bank, thus making it easier to access 
international financing at a moderate cost.  
3.22.   Turning to fiscal policy, I should mention the Law on fiscal responsibility, which limits the 
central government deficit and primary cur rent expenditure for the public sector; this enabled the 
Central Government to post an operating surplus during 2011 -2016.  
3.23.   The balance -of-payments current account was also in surplus throughout the review period, 
with the exception of 2012 and 2015.  
3.24.   As we all know, services is the most dynamic and fastest growing sector the world over, so 
it is interesting to note that the increase in foreign direct investment was targeted at this sector in 
particular.  
3.25.   Another noteworthy point is the new legislation enacted  by Paraguay in the following 
trade -related areas: investment, transparency, e -commerce, public -private partnership, 
value  added tax, the maquila regime, protection of competition, government procurement and 
mining. Regarding the mining sector it is also i mportant to note, for its immediate future, the 
discovery of large uranium deposits and of what may be the world's largest titanium  deposit, in 
addition to gold, nickel, cobalt and chromium.  
3.26.   As regards e -commerce, which has a strong impact on economic inte gration and foreign 
trade, especially for MSMEs, Paraguay has adopted a number of measures to regulate and promote 
trade by electronic means under the Law on electronic commerce and the Law on digital signature.  WT/TPR/M/360 • Paraguay  
 
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  3.27.   Paraguay has an open foreign direct investme nt regime, having enacted three new laws: (a) 
the Law on public -private partnership, (b) the Investment Protection Law, and (c) the Law on 
public works involving financing or turnkey contracts.  
3.28.   Along similar lines, in 2017 the MERCOSUR countries signed a P rotocol on intra -MERCOSUR 
cooperation and investment facilitation.  
3.29.   Paraguay is a founding member of MERCOSUR, which accounts for 35% of its foreign trade. 
Brazil is Paraguay's leading market (21%), followed by China. The high concentration of exports in 
just a few markets and products is one of the problems to be overcome by means of long -term 
economic policies providing for incentives to diversify through value -added commodities and 
services.  
3.30.   Institutional development and economic performance have an impa ct on social 
development.  
3.31.   A point worthy of note is that social investment has accounted for close to 57% of total 
central government expenditure in 2017, ensuring financing of the country's key social 
programmes, most of which have seen an increase in cov erage; these include the old -age pension 
scheme, which reportedly numbers 190,000 beneficiaries, and the Tekoporã conditional cash 
transfer programme, which is understood to be available to 150,000 families.  
3.32.   Paraguay has invested a great deal in education over the past 20 years, which has led to 
progress in terms of school enrolment, expanded secondary education coverage, and the 
introduction of compensatory programmes. According to the United Nations Development 
Programme's Human Development Index 2016, th e average number of years of schooling in 
Paraguay is 8.15  years, meaning that the country is still below regional average. According to the 
Center  for Economic Analysis and Dissemination in Paraguay  (CADEP ), expenditure remains 
insufficient to achieve all  the education policy targets, and progress in quantitative terms should 
be matched by better educational quality. All of our countries are concerned by this issue of having 
achieved wide coverage whilst still needing to improve the education provided.  
3.33.   The 2016 Human Development Index (HDI) placed Paraguay in the medium human 
development group, ranking it fourth within the group. We hope that in the coming years the 
benefits of the reforms implemented or under way will bring Paraguay closer to achieving hig h 
human development ranking.  
3.34.   As is the case of many other countries in the region, Paraguay is faced overall with the 
problem of inequality. This means that it is five places lower when its HDI ranking is adjusted for 
inequality. On the other hand, it shou ld be pointed out that the country has moved up four places 
in the gender inequality index, which emphasizes women's empowerment.  
Trade policy and multilateral commitment  
3.35.   In addition to the points made in the Secretariat and Government reports, the enactme nt of 
the Law on the protection of competition and its implementing Regulations is, in our view, one of 
the most noteworthy advances of the review period, bringing the country closer to international 
standards in this area.  
3.36.   It should also be mentioned that  the period under review saw the adoption of various 
regulations to increase the efficiency and transparency of government procurement procedures.  
3.37.   As regards intellectual property, a subject very closely related to innovation and 
capacity -building to add v alue to products, Paraguay has introduced several reforms since the 
previous review. Both reports highlight legislative changes aimed at more effective regulation in a 
number of areas.  
3.38.   Another major development was the creation in 2012 of the National Inte llectual Property 
Directorate, which is responsible for implementing national policy on intellectual property and for 
enforcing the rules protecting intellectual property rights.  WT/TPR/M/360 • Paraguay  
 
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  3.39.   The institutional framework for intellectual property was strongly reinforce d by the 
Paraguay  2030 National Intellectual Property Plan, adopted in May 2017, which aims to strengthen 
the intellectual property system in order to make it more effective and foster the country's 
economic, social and cultural development.  
3.40.   These intelle ctual property developments are undoubtedly a step in the right direction.  
3.41.   It is important that protection of products of the human intellect should serve as a basis for 
encouraging innovation. Innovation is an essential component of the 21st century econ omy, and its 
level of development depends on a number of factors. We can see that the Global Innovation 
Index has given Paraguay fairly similar rankings, although its place in the overall ranking has 
varied according to its position in relation to the othe r countries surveyed. It is currently placed in 
the middle range among countries of the Latin American and Caribbean region.  
3.42.   As regards its commitment to the multilateral trading system, Paraguay is a staunch 
supporter of the system and contributes through  its active participation in the WTO agriculture 
negotiations, particularly those concerning market access. With a view to the Buenos Aires 
Ministerial Conference, Paraguay has put forward and driven the following two proposals: 
(i) establishment of a work  programme for further liberalization of agricultural market access; and 
(ii) elimination of the special agricultural safeguard (SSG) from the Agreement on Agriculture.  
3.43.   In the WTO, Paraguay is an active member of the Cairns Group, the G -20 and the Friends of 
MSMEs. Most notably, it coordinated the Group of Landlocked Developing Countries during the 
negotiation of the Trade Facilitation Agreement, and it upholds the interests of the Group in this 
Organization.  
3.44.   Another point is that Paraguay is seeking to mak e progress in notifying the WTO of the 
sanitary and phytosanitary measures it adopts. It should be emphasized that draft measures were 
notified during the period under review, because the previous review had shown that the vast 
majority of measures were be ing notified after their adoption.  
3.45.   Only five measures were notified during the review period: four pertaining to plant health 
and one to animal health, of which two were notifications of emergency measures and 
three  regular measures.  
A few conclusions and recommendations  
3.46.   The Paraguayan economy is growing, and there are grounds for optimism that this trend will 
continue despite the uncertainties of the global environment. This will be possible to the extent 
that Paraguay continues to strengthen its instituti ons, enhance its business environment with legal 
certainty and predictability, and adjusts productivity and the competitiveness of its production 
system to the new parameters of the world economy, which is strongly focused on knowledge and 
modern technolog ies. 
3.47.   There is potential to be highlighted beyond the opportunities already mentioned.  
3.48.   Paraguay is the leading exporter of electricity on the American continent, which is a critical 
factor in the medium and long term as the world prepares to shift its energ y matrix from fossil 
fuels to clean energy sources.  
3.49.   It is the world's second largest exporter of stevia, fourth largest exporter of soya beans and 
fifth largest exporter of beef.  
3.50.   As regards non -core services, the trade and financial sectors are the most re levant, with an 
estimated contribution of 28% between the two.  
3.51.   In the telecommunications sector, the density levels for fixed telephony and fixed broadband 
access are still among the lowest in Latin America but the level of mobile telephony penetration is  
high. We believe that if the National Telecommunications Plan 2016 -2020 meets its targets, 
progress can be made in terms of connectivity, digital inclusion and regulatory efficiency.  WT/TPR/M/360 • Paraguay  
 
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  3.52.   Paraguay's population is among the youngest in the world, with a high fe rtility rate of 
3.6 children per woman. Its population structure shows that four out of every ten people are under 
15 years of age, and those between the ages of 15 and 29 account for one fourth of the total 
population. This represents considerable potenti al for boosting and ensuring the sustainability of 
the economy, which in turn has an impact on the sustainability of social welfare and pension 
systems – a critical issue for several countries of the region and in the developed world.  
3.53.   The World Economic F orum's Inclusive Growth and Development Report  2017 shows 
Paraguay as one of the top ten performers among the developing countries in terms of the most 
improved five -year trend, and Paraguay ranks 19th among the developing countries in the 
Inclusive Develo pment Index, where it is classified as "Advancing".  
3.54.   I would also highlight as a very positive development the fact that the Paraguay  2030 
Development Plan is 80% in line with the United Nations Sustainable Development Goals, national 
economic policy being geared to consolidating the pace of inclusive economic growth based on 
diversification of production and the active involvement of all sectors of society.  
3.55.   Lastly, I will point out some of the aspects that call for improvement if Paraguay is to take 
advanta ge of its huge potential and keep up the pace of the reforms undertaken, which are 
yielding good results. There are factors that directly impact on growth and stability.  
3.56.   As regards competitiveness, innovation, business dynamism and financial market 
develop ment, Paraguay still lags behind according to the World Economic Forum's comparative 
international indicators.  
3.57.   The same goes for economic freedom according to the Heritage Foundation and the 
World  Bank's Ease of Doing Business ranking.  
3.58.   Transparency Inter national's Corruption  Perceptions Index  2016 does not yet reflect the 
impact of the legislative developments highlighted in this statement.  
3.59.   On the other hand, it is encouraging to note that in terms of ease of doing business 
Paraguay improved its ranking as regards the use and introduction of electronic processing of 
export documents, protection of small investors, cross -border trade, and observance and 
performance of contracts. Its rating nonetheless worsened as regards access to electricity, access 
to credit and tax collection.  
3.60.   Paraguay has a relatively good – albeit insufficient – ranking in terms of its macroeconomic 
environment (60/138) and financial market development (72/138). According to the latest 
information from the Getulio Vargas Foundation, t he country takes first place in the region as 
regards its business climate.  
3.61.   Paraguay became a signatory to the United Nations Convention against Corruption in 
June 2005. According to the World Bank, Paraguay's investment climate will benefit from greater 
transparency and less administrative discretion. I therefore lay renewed emphasis on the Law on 
access to public information of 2014 and the anti -corruption whistleblowing portal. Paraguay's 
acceptance as a member of the OECD Global Forum on Transparency a nd Exchange of Information 
for Tax Purposes is also noteworthy.  
3.62.   As we said before and to conclude this statement, bringing the institutional framework and 
the economy into line with the new global environment, since all of us are already entering the 
fourth industrial revolution , are essential from a forward -looking perspective. In this respect, I 
would like to mention that the latest Global Innovation Index, which focuses on agriculture and 
food systems, shows Paraguay, with its 63.4% of agricultural expor ts, in the group of countries' 
with poor innovation capacity for both conventional and modern biotechnology.  
3.63.   We see scope for qualitative growth there, because beyond the overall score, where 
attention must continue to be paid to the institutional pillar, business sophistication and labour 
market efficiency, the development of the Paraguayan market stands out favourably as regards 
access to credit and creative output.  WT/TPR/M/360 • Paraguay  
 
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  3.64.   In other words, Paraguay is a society geared towards creation, which would suggest that 
with continued institutional improvement and private -sector commitment to achieve greater 
business sophistication, a great deal could be achieved for Paraguay's innovative future and hence 
its sustainable development. Thank you.  
CHAIRPERSON  
3.65.   Thank you, Ambas sador Casanueva, for your comprehensive analysis. It goes without 
saying that I join the other speakers in expressing condolences to and solidarity with Mexico and 
the Caribbean islands in the aftermath of the hurricanes that struck in recent weeks and aga in this 
past week . WT/TPR/M/360 • Paraguay  
 
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  4  STATEMENTS BY MEMBER S 
COLOMBIA  
4.1.  We too would like to join other speakers in expressing words of solidarity, condolence and 
sympathy in the aftermath of what happened in Mexico and Dominica, and to extend wholehearted 
wishes to Puerto Ric o for the welfare of its people.  
4.2.  Colombia and Paraguay enjoy extensive relations and are linked by strong bonds of friendship 
rooted in our common history. Suffice it to recall the decree issued by the Colombian Congress on 
27 July 1870 when Paraguay's sov ereignty was threatened by war: " If, as a result of the war, 
Paraguay were to disappear as a nation, no Paraguayan will be a pariah in America; should this 
occur, merely by stepping onto Colombian soil Paraguayans will automatically enjoy the privileges, 
powers, prerogatives and rights accorded to Colombians. In other words, should they lose 
Paraguayan nationality, they will automatically become Colombian citizens".  
4.3.  As regards the substance of this review, the Paraguayan economy has experienced dynamic 
and stable growth thanks to prudent fiscal policy management and improved management of 
taxation. In the macroeconomic sphere, the Government's endeavours have borne results, which 
are reflected in some of the country's economic indicators, such as: average an nual growth of 
4.6%, an unemployment rate of around 5%, controlled inflation, and a balance -of-payments 
current account in surplus almost every year.  
4.4.  Paraguay has also implemented a number of ambitious reforms to promote economic 
diversification and attra ct investment, by passing new laws to enhance the investment climate, 
such as the Law on public -private partnership, the Investment Protection Law and the Law on 
financed public works. As regards electronic commerce, it has adopted a range of measures to 
regulate and foster e -commerce, such as the Law on digital signature and the Law on electronic 
commerce. With respect to trade facilitation, having ratified the FTA in March 2016 Paraguay has 
introduced improvements in customs procedures and controls, thus making trade transactions 
easier and reinforcing revenue -collection capacity. We are confident that these reforms will 
increase ease of doing business in Paraguay as well as the country's competitiveness, and will be 
reflected in indices such as the World Bank's Doing Business Index, in which Paraguay most 
recently ranked  106th, pointing to the need to pursue and intensify these efforts.  
4.5.  In the trade sphere, Paraguay has an active MERCOSUR agenda, with more than 
15 agreements with various countries of the r egion and worldwide. It also benefits from the 
Generalized System of Preferences. Its key trading partners are MERCOSUR members, accounting 
for around 40% of its imports and exports. Its bilateral trade relations with Colombia are governed 
by the CAN -MERCO SUR Agreement. Bilateral trade amounted to US$22 million worth of goods 
exports from Colombia and US$25 million worth of imports from Paraguay, involving the following 
products in particular: medicines, insecticides and agro -chemicals, hair preparations, a nd 
petroleum oils. Even so, there is considerable scope for expanding trade in products such as 
specialty coffees, cocoa products, animal feed, household goods, and cosmetics.  
4.6.  At the multilateral level, we welcome Paraguay's active contribution towards imp roving the 
operation of the multilateral trading system. Our positions are close on a number of issues and on 
aspects of the agriculture negotiations, as both of us belong to the Cairns Group.  
4.7.  As regards foreign direct investment, Colombia was Paraguay's 1 1th largest investor in terms 
of FDI stock  up to 2015, with a little over US$92 million. There are clearly opportunities for 
increasing bilateral investment in sectors such as engineering and construction services and civil 
works; electricity and telecommu nications infrastructure; agriculture with high potential for the 
processing of plant and animal protein; and waterway logistics.  
4.8.  Four memorandums of understanding were signed on the occasion of the Colombian 
President's visit to Paraguay in April of this year. One point of emphasis is the promotion of 
production integration between the two countries as a driver of strategies to develop a closer trade 
partnership between their industries and thus boost regional and global value chains.  WT/TPR/M/360 • Paraguay  
 
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  4.9.  To conclude, we than k Paraguay for responding to the questions that we submitted for this 
review and wish its delegation every success in this fourth trade policy review. We congratulate 
Ambassador Aguirre and his team at the Permanent Mission in Geneva for their excellent wo rk. 
MEXICO 
4.10.   Before I begin I would like to express, on my delegation's behalf, our heartfelt thanks to 
Ambassador Casanueva, to you, Mr Chairman, and to other colleagues for their expressions of 
solidarity and support for our country.  
4.11.   Paraguay has shown amp le proof of its work for and commitment to this Organization in 
engaging constructively in the negotiation of the Trade Facilitation Agreement and the agriculture 
negotiations, as well as assuming the chairmanship of the Committees on Trade and Development  
and on Sanitary and Phytosanitary Measures, and serving as Vice -Chair of the Committees on 
Market Access and Import Licensing.  
4.12.   As fellow countries, Mexico and Paraguay share common features and a deep commitment 
to maintaining a strong trading partnership , as evidenced by the signing of nine bilateral 
cooperation instruments during President Horacio Cartes' latest visit to Mexico in 2016.  
4.13.   Real GDP experienced a high growth rate of 4.7% between 2011 and 2016, despite a 
drought in 2012 when it shrunk by 1.2 % before soaring to an impressive 14% in 2013.  
4.14.   This was achieved in part by increased domestic consumption and public spending and the 
implementation of some countercyclical fiscal policies. Nonetheless, the country's economic 
stability and growth outlook  are still threatened by the informality that continues to deprive the 
Government of tax revenue and by poor road infrastructure, given that less than 10% of the 
national road network is sealed.  
4.15.   Although the total central government debt -to-GDP ratio is re latively low, the speed at 
which it is rising could represent a problem in the future, having doubled from 11% in 2011 to 
23% in 2016.  
4.16.   Paraguay has become one of the leading exporters of hydroelectric power and is the world's 
sixth largest exporter of soya  beans. On the other hand, in 2016 more than two thirds of its 
exports consisted of plant, food and mineral products, making the country particularly vulnerable 
to a decline in international commodity prices.  
4.17.   My delegation has some concerns pertaining to m arket access:  
i. As regards tariffs, in its replies Paraguay explained to us that for the 80 lines on which 
the applied rate exceeds the bound rate, the latter applies. However, we are concerned 
about the confusion that this may cause for business operators.  
ii. Paraguay has a complex tax system, in that imports are subject to various charges other 
than tariffs, including:  
o a consular fee for endorsing documents that varies depending on the means of 
transport and the type of operation involved;  
o a tax amounting to  7% of the consular fee to finance the Paraguayan Indigenous 
Institute;  
o a valuation tax for the supply of customs services;  
o a tax for the use of the customs computer system; and  
o variable taxes on imports entering by air.  
iii. We also note the introduction of new import licenses for products such as footwear, salt, 
cement and  mobile telephones.  
4.18.   As regards trade facilitation, however, Paraguay made improvements that include the 
following:  WT/TPR/M/360 • Paraguay  
 
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  i. the adoption of a computerized risk management system;  
ii. the implementation  of an authorized economic operator programme; and  
iii. the digitalization of customs documents.  
4.19.   We congratulate Paraguay for implementing important legislative reforms such as the 
following, which will contribute to its institutional consolidation efforts:  
i. Law on electronic commerce;  
ii. Law on micro, small and medium -sized enterprises;  
iii. Law on the protection of competition, and the establishment of the National Competition 
Commission.  
4.20.   Regarding services, we would emphasize significant achievements such as the follo wing:  
i. attraction of foreign direct investment into the tourism sector, where FDI in restaurants 
and hotels has almost tripled;  
ii. in telecommunications, mobile telephony penetration is high, with 105 subscribers per 
100 inhabitants;  
iii. Paraguay has the largest river fleet in the region and ranks third at world level; and  
iv. the country's macroeconomic stability has contributed to a doubling of bank deposits and 
loans over the review period.  
4.21.   Nonetheless, we believe that an important means of bolstering these efforts  would be for 
Paraguay to expand its commitments in services, which are limited to the financial and tourism 
sectors.  
4.22.   I close by thanking Paraguay for its replies to my delegation's questions and wish it every 
success in this review.  
CANADA  
4.23.   I would like t o begin by commending Paraguay on its macroeconomic stability, sound 
monetary policies and impressive commitment to international trade, which have contributed to 
the steady performance of Paraguay 's economy in recent years.  
4.24.   During the period of review, P araguay demonstrated its commitment to international trade 
and the multilateral trading system as an active member of the WTO and by implementing reforms 
domestically to make trade procedures more efficient and transparent. For example, Paraguay 
demonstrat ed leadership as coordinator of the Group of Landlocked Countries during the 
negotiations of the Trade Facilitation Agreement and ratified that agreement in early 2016. 
Paraguay is also a valuable member of the Cairns Group, seeking to further liberalize t rade in 
agricultural products. Domestically, we commend Paraguay on implementing new legislation to 
improve the investment climate, which will help in attracting foreign direct investment, especially 
in the natural resources sector.  
4.25.   As Canada 's Minister of  International Trade has stated many times, "we believe that our 
shared prosperity lies in openness and the pursuit of freer trade between nations ". Paraguay has 
actively pursued global and regional integration and played an active and constructive role in  the 
work of the WTO. We commend Paraguay 's strong commitment to trade integration and support 
for the international trading system. Through its Mercosur membership, Paraguay is engaged in 
ongoing dialogue to deepen the Canada -Mercosur trade and investment  relationship.  
4.26.   More broadly, Canada recognizes Paraguay 's efforts to strengthen its public finances, to 
apply prudent fiscal and sound monetary policies, to reduce the level and volatility of inflation. We 
also commend Paraguay on its National Development Plan 2014 -2030, which encompasses three 
important objectives: poverty reduction and social development, inclusive economic growth, and 
integration into the world. These interlinked objectives positively represent our shared belief that 
trade can foster dev elopment and open markets can lead to inclusive economic prosperity.  
4.27.   Canada is committed to gender equality and women 's economic empowerment and strongly 
believes that women entrepreneurs in developing countries are creating jobs and helping build WT/TPR/M/360 • Paraguay  
 
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  economie s that work for everyone. We applaud Paraguay 's efforts to pursue policies and programs 
that promote economic inclusion and empowerment of women. For example, the steps taken by 
the Ministry for Women in facilitating access to credit for business undertaki ngs; driving strategies 
to give rural women a place in value chains and domestic markets; and providing guidance for 
them to compete in regional and international markets.  
4.28.   Despite these great improvements, I would like to raise three areas of concern where  
Canada would like to see further progress.  
4.29.   First, we would like to draw attention to the overall ease of doing business and the 
enforcement of the rule of law in Paraguay. Canadian businesses find Paraguay 's regulatory 
requirements complex and government approval processes excessively long. Despite the 
Government 's efforts to improve the business environment, the World Bank 's 2017 Doing Business 
report ranks Paraguay 106th among 190 countries. Canada encourages Paraguay to simplify and 
accelerate regulator y requirements, particularly in sectors where Paraguay is keen to attract 
investment. Additionally, Paraguay 's rank of 123rd out of 176 countries in Transparency 
International 's Corruption Perceptions Index underscores the need to reinforce policy measures  to 
combat corruption.   
4.30.   Second, labour informality - accounting for up to 40% of GDP according to some estimates 
– should be addressed. Despite recent reforms introducing personal income tax and new 
agricultural taxes, Paraguay 's large informal economy co ntinues to be a drag on fiscal 
consolidation. We encourage Paraguay to continue with measures towards greater formalization of 
employment.  
4.31.   Third, we would encourage Paraguay to continue implementing measures to diversify its 
economy. Paraguay 's exports are  still dependent on a small number of agricultural products. 
Diversify exports could reduce Paraguay 's vulnerability to inclement weather and commodity price 
shocks. As a measure to help exporters reach foreign markets, we encourage Paraguay to continue 
with implementation of the Trade Facilitation Agreement through the submission of remaining 
notifications under Section II of the Agreement without delay.  
4.32.   Allow  me to conclude by thanking Paraguay for its responses to Canada 's advance written 
questions in th is trade policy review which our colleagues in capital will review with interest. Let 
me also congratulate Paraguay on its implementation of concrete measures that support open 
markets and strengthen international trade.  
AUSTRALIA  
4.33.   Australia 's trade and inv estment relationship with Paraguay is modest, largely reflecting 
one-off deals rather than ongoing supply arrangements. In 2016, total two -was merchandise trade 
totalled A$5.15 million. Australia 's relationship with Paraguay through the WTO and the Cairns 
Group, support agricultural market access liberalization and commitment to a rules -based 
multilateral trading system.  
4.34.   We commend Paraguay for its process of reform leading to strong and sustained growth. 
These reforms are encouraging, particularly for inte rnational investors in Paraguay 's resource, 
agricultural and service sectors.  
4.35.   It is clear that Paraguay has a commitment to trade liberalization and has made efforts to 
open its economy and increase transparency and competitiveness. Paraguay, like Australi a, is a 
vocal advocate for free trade and an active participant in the multilateral trading system 
demonstrated by acceptance of the Trade Facilitation Agreement. We want to work closely with 
Paraguay to support an open international trading system and loo k forward to strengthening our 
relationship with Mercosur.  
4.36.   We note that Paraguay 's import and export markets remain highly concentrated, and also 
note the importance of access to international markets for Paraguay as a landlocked developing 
country. We are  encouraged by the ambitions of Paraguay 's National Development Plan 2030. 
Australia welcomes Paraguay 's advances in diversifying its economy.  WT/TPR/M/360 • Paraguay  
 
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  4.37.   Australia has submitted several written questions as part of this review and we thank 
Paraguay for its responses.  We wish Paraguay well in its Trade Policy Review.  
BRAZ IL 
4.38.   Paraguay 's economy has performed robustly over the last years, despite the global 
economic downturn. Supported by sound fiscal and monetary policies and an overall openness to 
trade, the country mai ntained positive rates of growth and low levels of unemployment during the 
international crisis.  
4.39.   We note as well that trade has contributed to the strong performance of the economy. 
Exports of agriculture goods, mainly meat, soybeans and cereals, continue  to play a significant role 
in supporting economic activity and maintaining the country 's current account surpluses.  
4.40.   Recent measures aiming at improving the business environment and attract investments are 
also worth mentioning. The Law on public -private p artnership, the Investment Protection Law, and 
the Law on public works – all of them approved in the period under review – add to the existing 
rules and provide new opportunities for foreign direct investment.  
4.41.   Still on the regulatory area, Brazil welcomes  the efforts taken to streamline customs 
procedures, including the recent actions in the implementation of the single window for imports. 
Nevertheless, our exporters remain concerned with the time required to process all import 
documents and the impact of consular fees on the costs of their exports.  
4.42.   With regard to multilateral obligations, we encourage Paraguay to continue to attach priority 
to further steps to enhance transparency. The Secretariat points out to outstanding notifications in 
areas such as do mestic support in agriculture, import licensing procedures, customs valuation, 
subsidies, and state trading enterprises.  
4.43.   Brazil and Paraguay are united by strong friendship ties a nd shared values. More than 
300 thousand Brazilians live and work in Paragua y. Together, we built one of the largest hydro 
power plants in the world. Part of the electricity produced by Itaipu is exported to Brazil, 
generating income for Paraguay in the form of compensation payments and royalties.  
4.44.   Brazil remains the main destinati on for Paraguayan exports and is the second largest 
investor in the country. Brazilian exports to Paraguay have increased 26.6% in the first semester 
of this year compared to the first  semester of 2016, reaching US$ 1.4 billion. Im ports from 
Paraguay reache d US$ 688 million, a 5.7% increase in the same period. We trust that the ongoing 
economic recovery in Brazil will open new opportunities for exports from Paraguay.  
4.45.   Sustained economic growth in Paraguay has attracted Brazilian investments. In the last 
three years, more than 80 Brazilian companies have started operations in our neighbor, with total  
investments of around US$ 200 million.  
4.46.   During the visit of President Horacio Cartes to Brazil last month, we took additional steps to 
deepen our economic and trade r elationship. We are currently negotiating an agreement for the 
automotive sector with the objective of further integrating our production systems and expanding 
our trade flows. Both presidents have also expressed their interest in the negotiation of a bila teral 
agreement to avoid double taxation.  
4.47.   Our positive bilateral partnership extends to th e region. As founding m embers of 
MERCOSUR, we are committed to pursue an effective regional economic integration, which will 
bring tangible benefits to our citizens. We are working to eliminate remaining trade barriers and to 
conclude an agreement on government procurement.  
4.48.   Let me conclude  by thanking the Paraguayan delegation for the replies to Brazil 's questions, 
which were forwarded to capital for examination and fo llow-up. We wish Paraguay a most 
successful Trade Policy Review.  WT/TPR/M/360 • Paraguay  
 
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  UNITED  STATES  
4.49.   We would just like to take a moment as we are focused on one of our neighbors in the 
Americas region to note our distress and sympathy for those in other parts of our regi on, notably 
Mexico and Dominica  who are experiencing such severe human suffering as a result of natural 
disasters.  
4.50.   Paraguay is one of the fastest growi ng economies in Latin America. Over the past decade, 
Paraguay 's GDP annual growth averaged 4.9 %, and a remarka ble 5.9 % from 2009 to 2016, 
attributable largely to growth in a gricultural commodity exports. Along with agriculture, the retail 
and construction sectors are the main drivers of Paraguay 's economic growth. Paraguay is among 
the top ten global exporters of soy, beef, organic sugar, and stevi a, a natural sugar substitute. 
This is quite remarkable for an economy of Paraguay 's size.  
4.51.   Paraguay also offers an increasingly attractive envir onment for foreign investment. 
Paraguay has low -cost electricity, low labor costs, less onerous la bor rules, and very low taxes. 
During the past few years, more than one hundred companies have recognized the advantages of 
investing in Paraguay and h ave established factories there  which have  led to increased 
employment and substant ial growth in the manufacturing sector, notably textiles, pharmace uticals, 
and auto parts. More than a dozen U.S. multinational firms have subsidiaries in Paraguay, 
including firms in the computer, agro -industrial, telecommunications, banking,  and other se rvices 
industries.  Some 75 U.S. businesses have agents or representatives in Paraguay, and more than 
6,000 U.S. citizens reside in Paraguay.  
4.52.   Bilateral trade in goods between the United States and Paraguay more than doubled over 
the past decade, reaching a total of US$2.1 billion in 2016. Our bilateral trade in agricultural 
products increased more than fo urfold during the same period. While the United States had a 
US$1.8 billion goods trade surplus with Paraguay in 2016, Paraguay enjoyed a surplus of nearly 
US$65 million in agricultural trade with the United States in 2016.  
4.53.   Since Paragu ay's last TPR in 2011, our two G overnments have continued to d eepen our 
bilateral engagement.  In June 2015, the United States and Paraguay concluded the renegotiation 
of a Memo randum of Understanding on Intellectual Property Rights intended to improve the 
protection and enforcement of intellectu al property rights in Paraguay.  Paraguay was subsequently 
removed from the Office of the U.S. Trade Representative 's Special 301 Watch L ist in recognition 
of Para guay's efforts and commitment. In January 2017, the United States and Paraguay signed a 
Trade and Investment Framework Agreement (TIFA), intended to create a vehicle for 
strengthening U.S. -Paraguayan trade and investment relations  and promoting increased economic 
opportunities for both countries.  The TIFA is awaiting ratif ication by Paraguay 's Congress.  Once 
ratified and in force, the United States looks forward to engaging with Paraguay through this new 
bilateral mechanism.  
4.54.   I wou ld like to take this opportunity to commend Paraguay for its support of and 
commitment to the successful conclusion, ratification, and entry into force of the WTO Agreemen t 
on Trade Facilitation (TFA). As a landlocked country, Paraguay has always recogni zed the 
importance of the TFA. We appreciate Paraguay 's notification of its Category A commitments  and 
we look forward to Paraguay 's Category B and C notifications. We also look forward to continued 
collaboration with Paraguay in the Trade Facilitation Commi ttee. 
4.55.   Paraguay is generally open to trade, with limited non -tariff barriers.  However, there are 
some issues of  concern to the United States. For example, Paraguay does not allow imports of U.S. 
beef, pending the conclusion of a review of the U.S. food saf ety system by Para guayan regulatory 
authorities. The status of this review remains unclear, despite requests from the United States 
over several years for Paraguay to conclude the regulatory review and open its market to U.S. 
beef products. Paraguay requir es non -automatic import licenses on a range of goods such as 
personal hygiene products, cosmetics, perfumes and toiletries, textiles and clothing, shoes, 
insecticides, agrochemicals, soy grains, barbed wire, wire rods, and steel and iron bars.  
4.56.   Although Par aguay has taken important steps to improve the enforcement and protection of 
intellectual proper ty rights, more work is needed.  The United States continues to have concerns 
about widespread piracy and counterfeiting in Paraguay, particularly in the tri -border reg ion with WT/TPR/M/360 • Paraguay  
 
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  Brazil and Argentina. In addition, there are concerns about judicial inefficiency in IPR cases; lack of 
protection against unfair commercial use and unauthorized disclosure of undisclosed test results or 
other data submitted to the Paraguay an government by U.S. agrochemical and pharmaceutical 
companies; the use of unlicensed software by the government; and the theft of pay-tv signals and 
related trafficking of satellite signal decoder devises.  An improved environment for the protection 
and enforcement of intellectual property rights is in Paraguay 's own interest because it will lead to 
an improved environment for foreign investment and innovation, which in turn will spur economic 
growth.  
4.57.   In conclusion, the United States appreciates this oppo rtunity to engage in an open 
discussion of Parag uay's trade regime. We look forward to further cooperation with our 
Paraguayan colleagues, both here at the WTO and in the co ntext of our bilateral dialogue.  We 
thank Paraguay for its responses to our questio ns and we look forward to reviewing the 
government 's answers to our questions and to those of other Members . 
EUROPEAN  UNION  
4.58.   On behalf of the European Union, I would first like to express my sympathy and support for 
the dire moments experienced by people in  Mexico and the Caribbean region.  
4.59.   I would like to welcome Paraguay 's delegation, and especially pay tribute to Ambassador 
Juan Esteban Aguirre Martinez who has been leading the Mission of Paraguay with insight and 
sense of humor . 
4.60.   The EU would like to star t by highlighting some of the positive issues that have emerged 
during the period under review.  
4.61.   First, we congratulate Paraguay 's strong economic performance since its last TPR in 2011. 
Macroeconomic stability and sound public finances supported growth and  held down inflation 
expectations. Paraguay was one of the fastest growing countries in Latin America. Paraguay is a 
landlocked country and trade is an essential component of its economy: it accounted for over 83% 
of GDP in 2016. It is noteworthy that serv ices are the main contributors to the economy by some 
44% of GDP and employing some 60% of the workforce.  
4.62.   Second, we commend the launch in 2014 of the Paraguay 's National Development Plan 2030 
which sets out the Government 's approach, focusing on three ma jor strategic priorities: (i) poverty 
reduction and social development; (ii) inclusive economic growth; and (iii) appropriate integration 
into the world economy. In particular, we support efforts to fight poverty and inequalities. In this 
context, we also welcome Paraguay 's moderate but gradual diversification in bilateral exports away 
from soya beans and soya by -products (from 78% in 2012 to 40% in 2016).  
4.63.   Third, we welcome Paraguay 's progress on intellectual property rights protection and 
enforcement. In t his context, the creation of the National Intellectual Property Directorate 
(DINAPI) in 2013 is a step in the right direction.  
4.64.   Paraguay played a constructive role in the negotiation of the Trade Facilitation Agreement; 
in 2016, it completed the trip by rat ifying it. The EU commends Par aguay in particular for its 
pro-active implementation as it submitted its Category A notification already in 2014 – this is an 
example that we hope other Members to follow soon.  
4.65.   With reference to our bilateral relationship, t he EU was Paraguay 's fourth most important 
trading partner, accounting for 12% of Paraguay 's total trade in 2015 and amounting for 
€1.65  billion.  
4.66.   Paraguay is a member of MERCOSUR - an important example of regional economic 
integration in Latin America. The EU with MERCOSUR is currently in negotiations for a bi -regional 
Association Agreement by which we aim at p romoting regional trade and cooperation 
opportunities. The EU imports from Paraguay are dominated by agricultural products while EU 
exports to Paraguay are dominated by manufactured products, in particular machinery and 
transport equipment. The EU hopes th at our future agreement will help in partly to rebalance this 
and make Paraguay an even more attractive a destination for EU 's Foreign Direct Investment.  WT/TPR/M/360 • Paraguay  
 
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  4.67.   The 1992 Framework Cooperation Agreement is the basis for bilateral cooperation between 
Paraguay and t he EU. For the period 2014 -2020, Paraguay benefits from bilateral assistance for 
education, private sector development, social protection and democracy/institutional strengthening 
worth €168 million under the Development Cooperation Instrument.  
4.68.   Despite al l these positive developments the EU would also like to raise a few challenges, 
some related to the questi ons we have submitted earlier. We thank Paraguay for its timely replies 
received in advance of the meeting in accordance with the alternative timeline s for this review.  
4.69.   First of all, even though Paraguay introduced a Law on access  to public information (Law 
No. 5.282/14) in 2014 and set up the anti -corruption whistleblowing portal for reporting alleged 
acts of corruption, we would like to highlight the  importance for Paraguay to pursue efforts to 
enhance transparency and to fight corruption.  
4.70.   Second, the EU is concerned about Paraguay 's consular stamping requirements which is an 
administrative burden and causes delays for exporters to Paraguay. The EU w ould like to 
encourage the elimination of consular stamping or any kind of consular transaction.  
4.71.   Third, to improve the business climate, the EU reiterates the need to repeal or amend the 
"Representation law " (194/1993) which imposes cumbersome requirement s on exporters 
regarding their commitments to local agents and distributors.  
4.72.   Fourthly, the EU encourages Paraguay to keep up its efforts to modernize its customs 
procedures, and in particular, to simplify import registration and to revise the current impor t 
licensing procedure.  
4.73.   Finally, the EU would recommend Paraguay to explore the idea of becoming a Party of the 
WTO Plurilateral Agreement on Government Procurement.  
4.74.   On behalf of the EU, I look forward to a constructive exchange of views during this review  
and I wish Paraguay 's delegation the utmost success during its Trade Policy Review.  
CHILE  
4.75.   We submitted nine questions for this review and appreciate the replies received.  
4.76.   Diplomatic relations between Chile and Paraguay date back to 1811. Our bilateral 
relationship is marked by a tradition of cooperation, constructive dialogue and understanding, 
which has led to close collaboration and considerable mutual support at bilateral, regional and 
multilateral levels.  
4.77.   Evidence of this was the first meeting of the Chile-Paraguay Binational Council of Ministers, 
held a year ago in Santiago and attended by almost all the Ministers of both countries.  
4.78.   The fifth Chile -Paraguay Round of Consultations took place last month in Santiago with a 
view to boosting political and  economic dialogue. Various aspects relevant to bilateral trade were 
reviewed on that occasion.  
4.79.   Deeper political, economic and physical integration has further consolidated our relationship. 
Jointly with Argentina and Brazil, our two countries have accord ingly given priority to moving 
forward with the Puerto Murtinho -Antofagasta (northern Chile) Bioceanic Corridor.  
4.80.   Connectivity between the Pacific and the Atlantic would benefit both intra -regional and 
regional trade. It should also facilitate customs proce dures by increasing their efficiency as well as 
standardizing and harmonizing inspection and control mechanisms between the countries. This 
should translate the WTO Trade Facilitation Agreement into concrete terms. We take this 
opportunity to point out tha t Paraguay was the second South American country to ratify the 
Agreement, on 1 March 2016.  
4.81.   We also highlight Chile's concession to Paraguay in the form of a 38.6 -hectare bonded 
warehouse and free zone in Antofagasta for goods exported and imported by Parag uay. This WT/TPR/M/360 • Paraguay  
 
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  customs facility is fully available for use. Paraguay in turn established a bonded warehouse and 
free zone in the port of Villeta for Chile.  
4.82.   These facilities are a tangible example of the advantages offered by pragmatic 
rapprochement between two  countries. We would point out that this project comes under the 
objectives and priorities set by the Vienna Programme of Action for Landlocked Developing 
Countries, in particular for those that seek to create the logistical and regulatory conditions to 
ensure traffic continuity for all transit countries, as well as trade and transport facilitation, which is 
also provided for under multilateral and regional agreements.  
4.83.   Economic relations between the two countries are channeled  mainly through the Joint 
Econo mic and Trade Council, which is due to hold its third meeting next October in Asunción. The 
key agreements reached in the Council are: to push forward with a common Pacific Alliance and 
MERCOSUR agenda, to join efforts in boosting bilateral trade, to organ ize exploratory missions to 
Paraguay for Chilean investors, and to build capacity in areas relating to global value chains.  
4.84.   Trade relations between Chile and Paraguay are governed by the Chile -MERCOSUR 
Economic Complementarity Agreement (ACE N°35), in for ce since October 1996. Under this 
Agreement, the entire tariff universe is now duty free, with our intense and successful bilateral 
relationship spanning trade, investment, air and land transport, and services.  
4.85.   In 2016, bilateral trade amounted to US$1,117  million. We know that international trade 
has contracted in recent years and that this has also had an impact on the figures for trade 
between Paraguay and Chile. It is in our interest to revive, restore and expand trade with 
Paraguay.  
4.86.   Chile has become a  supplier of products such as motor vehicles, footwear, medicines, 
copper and wine, whilst Paraguay is a leading exporter of meat and food products generally to 
Chile.  
4.87.   We are working hand -in-hand with Paraguay on agricultural trade reform in the WTO; 
throu gh the Cairns Group and the G -20, we intend to make the issues addressed there a priority in 
the Doha Round. We also share the same views in the Group of Friends of MSMEs.  
4.88.   From the reports submitted, we note that Paraguay improved its macroeconomic indica tors 
over the review period, achieving stability of the economy, an increase in foreign direct investment 
and a current account surplus. These impressive indicators are due to the reforms implemented by 
the Government, with modernization of the public sect or also accounting for greater efficiency and 
transparency.  
4.89.   We wish to highlight the e -commerce reforms which have contributed to modernizing and 
generally increasing trade. We also note the implementation of various technical regulations; in 
that regard,  despite the lack of a centralized agency each of the authorities concerned follows 
procedures within its area of competence and there is good coordination between them.  
4.90.   We welcome Paraguay's acceptance, in June 2016, as a member of the OECD Global Forum 
on Transparency and Exchange of Information for Tax Purposes.  
4.91.   Turning to the notification of sanitary and phytosanitary measures, we urge Paraguay to 
continue submitting them on time.  
4.92.   We nonetheless believe that there is still room for improvement, which might be made in 
areas such as infrastructure, streamlining of procedures, refining of investment and export 
incentives, and in matters involving intellectual property rights. We also believe that international 
public tendering could be further encouraged in specific cases.  
4.93.   In addition to its significant role in the regional and global economy, Paraguay shows a firm 
commitment to the multilateral trading system. We are therefore convinced that it will make an 
important contribution to the success of the nex t Ministerial Conference in Buenos Aires.  
4.94.   Lastly, we wish our trading partner a successful fourth review of its trade policies.  WT/TPR/M/360 • Paraguay  
 
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  DOMINICAN  REPUBLIC  
4.95.   First of all, we would like to express our sympathy to Mexico after the recent tragedy of the 
two earthquakes , and to the Caribbean islands, particularly Dominica, following the disaster that 
struck the country yesterday.  
4.96.   The Dominican Republic has close bonds of friendship with Paraguay. These ties grew 
stronger after the opening of the Embassy of the Dominican Republic in Asunción in 2009 and the 
Embassy of Paraguay in Santo Domingo in 2014, which marked an important revival of relations 
between the two countries.  
4.97.   In 2016, our bilateral trade balance was in favour of Paraguay because, as the Secretariat 
report p oints out, its economy has performed robustly since the previous review in 2011. Real 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 th e main source of exports. The unemployment 
rate remained moderate during the review period, generally fluctuating between 5% and 6%.  
4.98.   We are also struck by the fiscal discipline exercised by Paraguay in implementing a new law 
known as the Law on fiscal resp onsibility of 2013, which sets annual percentage caps on increases 
in expenditure (year -on-year inflation rate plus 4%) as well as limits on the central government 
deficit, which must not exceed 1.5% of GDP. This policy of fiscal consolidation has led to a n 
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.  
4.99.   It should be emphasized that during the review period the balance -of-payments cur rent 
account was 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. Through most of the review period Paraguay added s ubstantially 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.  
4.100.   As regards its trade regime, we congratulate Paraguay for its transparent and  open tariff 
system. The average MFN tariff applied to agricultural products (WTO definition) was 9.9%, and to 
non-agricultural products, 8.2%. The weighted average of applied import duties was 3.2% in 
2017.  
4.101.   Another of Paraguay's major reforms in the cour se of the review 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). Paraguay 
also ratified the WTO Agreem ent on Trade Facilitation on 1 March 2016, and continued its reform 
process with a view to making customs administration more efficient and transparent and 
facilitating trade. These reforms include the adoption of a computerized risk management system, 
the implementation of an authorized economic operator programme, the introduction of the 
express consignment procedure, electronic transmission of air manifests, and the digitalization of 
customs documents.  
4.102.   Lastly, we thank Paraguay for its replies to the que stions submitted by the Dominican 
Republic and trust that it will continue on the path of economic and social progress for its people.  
ARGENTINA  
4.103.   We thank Paraguay for its reports, which enabled us to bring our knowledge of its trade 
policies and practices up to date, and for its replies to our written questions, which will receive our 
closest attention.  
4.104.   Special thanks are due to Ambassador Juan Esteban Aguirre for his unfailing cooperation in 
the ongoing work of the Mission of Argentina in this Organization .  WT/TPR/M/360 • Paraguay  
 
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  4.105.   Argentina has the honour of sharing membership with Paraguay in MERCOSUR, where over 
the review period Paraguay ranked as the fastest growing economy.  
4.106.   Argentina is the second largest destination of Paraguayan exports.  
4.107.   Paraguay has done a remarkable jo b in maintaining its macroeconomic stability and a 
steady rise in GDP. We commend it in particular for achieving real GDP growth averaging 4.7% 
per year between 2011 and 2016.  
4.108.   It has also made appreciable efforts to maintain a moderate rate of unemployment  and 
achieve real growth in financial services and the agricultural sector, as well as a significant 
increase in exports, especially of oilseeds, meat products and electricity.  
4.109.   As far as we are concerned, the measures that Paraguay has implemented to enhan ce the 
investment climate – especially by means of the Law on public -private partnership of 2013 – are 
highly relevant. Other aspects of interest to us are the single window for imports, in operation 
since 2010, the risk -based selection system, formally in troduced in July 2015, the implications of 
the tariff concessions and exceptions granted, and the Law on the protection of competition, 
enacted in 2013.  
4.110.   We emphasize the recent signing of two memorandums of understanding between 
Argentina and Paraguay – the first concerning tax, economic and integration cooperation between 
the Ministries of Finance of the two countries, and the second aimed at strengthening connectivity 
for the supply of internet services via fiber-optic cable from Argentina. We should also  mention 
that the aviation authorities have prepared a draft air services agreement and have agreed to 
increase the frequencies for each party from the former 28 to 42.  
4.111.   We especially underscore Paraguay's commitment, in the WTO framework, in driving 
forwar d issues such as e -commerce, the digital economy, investment facilitation, and micro, small 
and medium -sized enterprises. Also worthy of mention is the Paraguayan authorities' high level of 
commitment regarding the Eleventh WTO Ministerial Conference to be  held in Buenos Aires and 
their readiness to engage in joint work so as to ensure that this meeting delivers positive and 
substantive outcomes.  
4.112.   Lastly, we reiterate our conviction that joint international integration through MERCOSUR 
makes us stronger. We  recall that MERCOSUR's external relations agenda is extremely dynamic, 
with negotiations currently under way with the European Union, the Pacific Alliance countries and, 
among others, Canada, Korea, India and South Africa.  
4.113.   In closing, we reiterate how muc h we appreciate this renewed opportunity to exchange 
viewpoints and comments on the trade policies and practices of Paraguay, and would like to draw 
attention once again to the importance of this exercise in transparency from every point of view. 
We wish t he Paraguayan authorities a successful conclusion to this review.  
COSTA  RICA 
4.114.   Costa Rica is pleased to take part in this trade policy review of Paraguay, which is an 
important South American trading partner for us, and the two countries share common interes ts 
and initiatives.  
4.115.   Costa Rica recognizes the constructive part played by Paraguay in the WTO, particularly in 
agriculture, where both our countries belong to the Cairns Group, and in trade facilitation, where 
Paraguay took a leading role during the negoti ation of the Trade Facilitation Agreement in 
coordinating the Group of Landlocked Developing Countries.  
4.116.   Costa Rica also shares Paraguay's interest in encouraging small and medium -sized firms to 
participate in global trade – an objective that we both promot e as members of the group of Friends 
of Micro, Small and Medium -Sized Enterprises.  WT/TPR/M/360 • Paraguay  
 
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  4.117.   Turning to the trade policy review proper, we underscore Paraguay's macroeconomic 
stability over the review period, marked by dynamic GDP growth, a low rate of unemployment,  an 
increase in international reserves, and prudent fiscal policy management.  
4.118.   Paraguay's external sector has been boosted by this strong economic performance, thanks 
in particular to buoyant domestic economic activity, electricity sales, and the agricultur al sector, 
which continues to account for a large share of Paraguay's foreign trade. Two thirds of Paraguay's 
goods export earnings come from sales of agricultural and food products, especially oilseeds, meat 
and cereals, of which Paraguay is one of the wo rld's leading suppliers. We also note that a high 
percentage of these exports go to MERCOSUR countries, reflecting a certain dependence in terms 
of goods and destination markets; it would therefore be interesting to explore further opportunities 
for divers ifying Paraguay's export supply.  
4.119.   The enactment of legislation in areas such as investment protection, competition policies, 
electronic commerce and intellectual property is another welcome development, insofar as these 
contribute to enhancing Paraguay's i nvestment climate and to fulfilling the objectives set out in the 
Paraguay 2030 National Development Plan (PND 2030).  
4.120.   We take careful note of the fact that the specific goals of the PND 2030 include tangible 
actions such as using and generating renewable energy sources. In this connection, we highlight 
Paraguay's leadership in producing and exporting hydroelectric power and other alternative energy 
sources; on the other hand, we also note that the country's energy policy goals include promoting 
hydrocarbon  production. Could Paraguay explain the objectives pursued in producing fossil fuels 
and how this tallies with the incentives to promote clean and renewable energy?  
4.121.   Lastly, we acknowledge Paraguay's efforts to implement policies aimed at combating 
climate  change as well as those made to increase women's economic empowerment and their 
participation in international trade.  
4.122.   For this trade policy review, Costa Rica submitted a set of questions to Paraguay 
concerning various aspects of its trade policy. We app reciate the attention given to these 
questions, and I will conclude by wishing Paraguay a successful trade policy review.  
4.123.   Tetanguera oñemu sasova oikopora hapichakuerandi  (a phrase in Guaraní that translates 
as "trading peoples are always at peace").  
THAILAND  
4.124.   Paraguay is Thailand 's seventh largest trading partner in South America as bilateral trade 
between the two countries was value at US $78.2 million in 2016. Thailand had a US$20 million  
trade deficit with Paraguay with import of soy bean cakes and leath er amounted to US$55 million 
in 2016.  
4.125.   We congratulate Paraguay 's strong economic performance from 2011 -2016 with growth 
averaging 4.7% as a result of stable macroeconomic environment and sound fiscal policy.  
4.126.   We commend Paraguay 's open investment regime wh ich saw the country passed several 
new laws during the review period to improve investment climate, leading to attractive tax 
incentives and permit the full repatriation of capital and profits.  
4.127.   Thailand also appreciates Paraguay 's continued efforts in its Customs reform process with 
the adoption of a computerized risk management system, the implementation of the approved 
economic operator programme, the express consignment procedure, and the digitalization of 
customs documents.  
4.128.   In this review, Thailand subm itted several questions to Paraguay and appreciates the 
prompt replies provided to our questions, for which we will study carefully with great interest.  
4.129.   Thailand thanks Paraguay for today 's presentation. We appreciate the close cooperation 
with Pa raguay he re in Geneva and wish  Paraguay every success in its fourth Trade Policy Review.  WT/TPR/M/360 • Paraguay  
 
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  ECUADOR  
4.130.   This trade policy review is of considerable interest to Ecuador because of our active trade, 
which is governed by and conducted under Economic Complementarity Agreement  No. 59 between 
the MERCOSUR countries and the CAN.  
4.131.   It is also a happy coincidence that, on this very day, a business round is taking place in 
Asunción between Ecuadorian and Paraguayan entrepreneurs; this will undoubtedly enhance trade 
and investment rela tions between our two countries.  
4.132.   Our country being renowned for its world -class banana production, Ecuador has cooperated 
with Paraguay in promoting banana growing, under agreements aimed at increasing production.  
4.133.   With respect to the Secretariat report, w e note the robust performance of the economy, 
the continued strengthening of the country's public finances, improved management of taxation, 
and a moderate unemployment rate fluctuating between 5% and 6%. It should also be 
emphasized that has Paraguay achi eved its objective of reducing inflation levels, which stood at 
3.9% in 2016, thanks to the implementation of an inflation -targeting scheme.  
4.134.   Further points worthy of note, among others, are Paraguay's share of the global market as 
the world's sixth  largest  producer and fourth largest exporter of soya beans and soya by -products, 
respectively, and as one of the world's leading producers and exporters of electricity; the opening 
of new markets; the expansion of manufacturing; and the rise in construction.  
4.135.   We acknowledge the work being done by the Government of Paraguay to establish rules in 
a number of fields to ensure the sustainability of public finances, by increasing tax collection and 
raising the share of tax revenue in GDP. As regards investment, we note  the enactment of new 
laws to enhance the investment climate, such as the Law on public -private partnership, the 
Investment Protection Law, and Law on the protection of competition. In the intellectual property 
sphere, the creation of the National Intellec tual Property Directorate is worthy of mention.  
4.136.   We also take note of the challenges facing the country in simplifying and streamlining the 
import licensing regime and improving customs management.  
4.137.   We acknowledge Paraguay's active participation in the WTO and its leadership role as 
coordinator of the Group of Landlocked Developing Countries in the negotiation of the Trade 
Facilitation Agreement and its subsequent ratification.  
4.138.   To conclude, we thank the delegation of Paraguay in advance for its answers to ou r 
questions concerning certain aspects of the country's trade policy, which will provide important 
inputs for strengthening bilateral relations in the area of foreign trade.  
SINGAPORE  
4.139.   The Paraguayan economy has demonstrated resilience in the face of a turb ulent regional 
and global environment. This was due in no small part to its strong macroeconomic fundamentals, 
as well as continued openness to trade and investment. Paraguay 's determination to keep its 
economy open despite the headwinds has paid off, with  GDP growth in Paraguay being one of the 
fastest in the Latin American region during the period under review. This is the clearest example of 
how geographical impediments - such as being landlocked – can be overcome, and how one can 
thrive and prosper as l ong as one maintains openness  to trade, investment and globaliz ation.  
4.140.   In many ways, Paraguay has also commenced a transition of its economy to better reflect 
an economy of the future. During the period under review, Paraguay has put in place new laws to 
reflect its desire to keep pace with the changes in the global economy, including the law on e -
commerce, law on MSMEs, law on the protection of investment, as well as the relevant laws, and 
establishment of a national competition commission. We look forward  to the positive impact of 
these new laws on the Paraguayan economy, including in the strengthening of bilateral economic 
relations b etween Singapore and Paraguay.  WT/TPR/M/360 • Paraguay  
 
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  4.141.   At the WTO, Paraguay has been an active and constructive Member and we are 
appreciative of a ll their efforts in advancing the multilateral trading system. We commend 
Paraguay for their leading role in the conclusion of the Trade Facilitation Agreement, and being the 
first MERCOSUR country to ratify the agreement. Paraguay has also been a strong a dvocate for 
Agriculture market access and reform, which Singapore, too, supports. As Paraguay continues in 
its active role within the WTO, we hope that Paraguay will also redouble efforts to fulfil its 
outstanding notifications which are the cornerstone of  WTO transparency efforts. We also 
encourage Paraguay to accept the Protocol of Amendment to the TRIPS Agreement, and to 
consider joining the Government Procurement Agreement (GPA) as well as the Information 
Technology Agreement (ITA).   
4.142.   Finally, we would like to note our appreciation for the positive role played by the Paraguay 
Mission in Geneva, led ably by Ambassador Juan Esteban Aguirre. Singapore looks forward to 
continuing our constructive cooperation with Paraguay to advance the multilateral trading system.  
NEPAL  
4.143.   It is appreciable that Paraguay 's macroeconomic outlook seems encouraging with sustained 
economic growth underpinned by sound economic  fundamentals. It remained successful in 
maintaining annual growth in real GDP of over 4% an average during the review period, featuring 
14% growth in GDP in 2013 and, thus, establishing record as the fastest growing economy in 
Mercosur. The 3 strategic priorities, namely: (i) poverty reduction and social development; 
(ii) inclusive economic growth; and (iii) in tegration into the world economy, set by the National 
Development Plan 2030 are important for sustainable development.  
4.144.   The relations between Nepal and Paraguay have remained cordial and friendly since the 
diplomatic ties between the two countries were esta blished in 2006. There are rooms to enhance 
partnership for trade in goods and services, trade facilitation and other development issues, 
between two countries. As a landlocked country, both countries share some common concerns in 
many international meetin gs and conferences regarding the development challenges of LLDCs.  
4.145.   As the exports and imports of LLDCs are required to transit through at least one coastal 
neighbouring country, the cost of cross border trade for LLDCs gets substantially high which 
prevents  them from effective integration into the global trading system. The data reveal that the 
transportation cost is 50% higher for landlocked countries than coastal countries. Similarly, the 
geographical challenges of LLDCs are often compounded by weak transi t-transport infrastructure, 
inefficient customs operations, and over -dependence on the exports of primary commodities.  
4.146.   Implementation of the priorities set by the Vienna Programme of Action (VPoA), such as 
trade, transit, infrastructure, trade facilitation  and structural economic transformation are 
substantially significant to integrate the LLDCs into the multilateral trading system.  
4.147.   Nepal and Paraguay, along with other Members, could work together, mainly in three 
areas. Firstly, strengthening the Internat ional Think Tank on LLDC, based in Mongolia, to frame 
the right policies and strategies to better integrate LLDCs into the MTS. Secondly, implementing 
the TFA to address both software and hardware part of trade related infrastructures by addressing 
at the border, behind the border and beyond the border issues. Thirdly, working together to 
convert traditional feature and concepts of landlocked country to land linked country through 
physical and digital connectivity at the regional and international level. Ef fective implementation of 
VPoA could be supportive to this end.  
4.148.   Finally, I wish Paraguay a great success in your effort as a Chair of the LLDC and also wish 
a successful Trade Policy Review.  
INDIA  
4.149.   At the outset, I join other delegations in expressing our d eep sympathy to the people in 
the Caribbean and Mexico for the loss and suffering due to the recent natural disasters.  
4.150.   Paraguay is amongst the fastest growing economies in the region and within MERCOSUR. 
During the p eriod under review , between 2011 and 2016, the GDP of Paraguay grew at an average WT/TPR/M/360 • Paraguay  
 
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  rate of 4.7% with a stable macro -economic environment. The economy of Paraguay is expected to 
maintain this economic  growth rate in 2017 and 2018. The key sectors driving the economic 
growth include financial servi ces, general Government , construction and agriculture.  The 
Government of Paraguay has also steadily implemented an agenda of economic reforms in several 
areas including implementing prudent fiscal policy, management on taxation, strengthening public 
financ es and protection of investments etc. We commend the Government of Paraguay for these 
measures and also for Paraguay 's visionary National Development Plan 2030 with the strategic 
priorities of reducing poverty, social development, inclusive economic growth  and integration into 
the world economy.  
4.151.   India and Paraguay share close, co rdial and friendly relations. The trade between both 
countries has continued to grow steadily i n recent years and stood at US$211 million in 2016. 
There have also been regular exch anges of business delegations. There is considerable potential 
for promoting trade and investment between both countries in areas like chemicals, automobiles, 
pharmaceutical products, machinery, edible oils, aluminum , rubber products etc. Indian companies 
are also looking for investing in Paraguay in chemicals, plastic, Information Technology, 
pharmaceuticals and other areas.  
4.152.   For capacity building in human resources India has been regularly offering slots to 
professionals from Paraguay under the India Techni cal Economic C ooperation (ITEC) programme.  
4.153.   To conclude , we look forward to working with the authorities of Paraguay for further 
expanding our trade and inves tment ties for mutual benefit. We wish the delegation of Paraguay a  
productive and successful TPR.  
SRI LANKA  
4.154.   At the outset, I wish to take the opportunity to convey our deepest sympathies to people 
who were affected due to the earthquake in Mexico and  to the people of the Dominica Caribbean 
Region who were affected due to the devastating hurricane.   
4.155.   Let me congratulate the Government of Paraguay for the robust economic performance 
since its last TPR in 2011. It is noteworthy the real gross domestic product has grown at an 
average annual rate of 4.7% during the review period, ensuring a stable macroecon omic 
environment within the country. This healthy economic performance is also reflected in its balance 
of payments current account, in particular the large surpluses on the goods trade balance. The net 
balance of international reserves to GDP ratio furthe r supports this outstanding performance.  
4.156.   My delegation recall s with appreciation the active role pl ayed by Paraguay as a founding 
Member of the WTO, particularly on Agriculture negotiations in the negotiating groups such as the 
Cairns Group and the G -20. R eaffirming Paraguay 's commitment to the multilateral trading 
system, it be came a M ember of the WTO Trade Facilitation Agreement in March 2016.  
4.157.   We also note with great interest that Paraguay has bound 100% of its tariff lines, ensuring 
business predictabil ity at rates that range from 10% to 35%. The most interesting thing is the 
simple average applied MFN tariff in 2017 is only 8.4%. The average MFN tariff applied to 
agricultural products is 9.9%, while fo r the non -agricultural products  it is 8.2%.  
4.158.   The dome stic law in Paraguay for foreign direct investments is highly predictable. It 
guarantees national treatment for foreign investors, the only exception being the land ownership 
for foreigners.  
4.159.   Let me briefly reflect on the bilateral trade and other economic  relations between two 
countries. Although the two way trade between two countries does not demonstrate a persistent 
pattern, Sri Lanka continue s to enjoy trade surplus with Paraguay, with an exception in 2011. Out 
of Sri Lanka 's exports to Paraguay, appro ximately 50% is represented by Rubber articles, followed 
by Activated carbon, Cotton, Tea and Apparel in small quantities.  
4.160.   In concluding, my delegation appreciates Paraguay 's highly valued contribution to the 
multilateral trading system and its active eng agement in the negotiations in the WTO. The dynamic WT/TPR/M/360 • Paraguay  
 
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  role played by Ambassador Juan Esteban Aguirre in proactively engaging in ongoing activities of 
WTO, is highly admirable.  
4.161.   We sincerely wish the delegation of Paraguay a successful deliberation at its 4th  Trade 
Policy Review.  
EL SALVADOR  
4.162.   We note from the Secretariat report that the Paraguayan economy has performed robustly 
since the previous review in 2011. Real GDP grew at an average annual rate of 4.7% during the 
review period, underpinned by a stable ma croeconomic environment which favoured growth and 
held down inflation expectations. The most vigorous economic sectors were financial services, 
construction, general government and the agricultural sector, which is the main source of exports. 
Moreover, Par aguay continued to strengthen its public finances by implementing prudent fiscal 
policies and improving taxation management, and introduced new legislation to lay down rules 
aimed at ensuring the stability and sustainability of public finances.  
4.163.   From the Go vernment report we further note how the design and implementation of 
market -oriented economic policies made for an excellent business climate, together with good 
harvests for the main crops, a steady increase in livestock production, the opening of new 
markets, an expansion of manufacturing and a rise in construction (public and private), among 
other factors. The Paraguay 2030 National Development Plan with its three major strategic 
priorities, namely (i) poverty reduction and social development, (ii) inclu sive economic growth, and 
(iii) appropriate integration into the world economy, focuses the Government's efforts on designing 
and implementing an economic policy aimed at achieving inclusive, environmentally friendly 
growth featuring innovation and technol ogical development. This has enabled the country to 
maintain its sound performance despite the unfavourable global environment that has adversely 
affected most of its neighbours and trading partners.  
4.164.   At the multilateral level, the delegation of Paraguay ha s been active in sponsoring various 
proposals to reduce tariffs, tariff peaks and tariff escalation for agricultural goods, in order to 
encourage and achieve consensus. It has demonstrated its support for the conclusion of the Doha 
Round through various ne gotiating groups, such as the G -20, the Cairns Group and the Group of 
Landlocked Developing Countries. It is also actively involved in new issues, such as e -commerce 
and investment facilitation.  
4.165.   At the bilateral level, precisely one year ago, on 21 October  2016, El Salvador and 
Paraguay signed a memorandum of understanding to establish a mechanism for political 
consultation and bilateral coordination between the two countries, with a view to reinforcing their 
mutual ties at the political, commercial and cul tural levels, facilitating the strengthening of trade 
relations, and intensifying cooperation, especially South -South cooperation.  
4.166.   Trade between El Salvador and Paraguay has remained stable in recent years. According to 
data from the Central Reserve Bank o f El Salvador, El Salvador's exports to Paraguay in the period 
2014-2016 mainly consisted of medicines for human use, fiberglass  products and articles of 
aluminium, while imports from Paraguay over the same period included medicines for human or 
veterinary  use, swimwear of synthetic fibres and footwear.  
4.167.   In light of the foregoing, it only remains for us to congratulate Paraguay for its outstanding 
performance and to wish it every success in this exercise.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.168.   First of all, like everybody in this room, our hearts go to Mexico as well as the Caribbean 
neighbors for the victims of the earthquake.  
4.169.   As we see from the r eports, the G overnment of Paraguay has successfully implemented its 
programme of mark et-oriented economic policies, helping it to become the fastest -growing 
economy in MERCOSUR. In fact, over the last few years, mainly through the government 's prudent 
macroeconomic and fiscal policies, GDP has risen steadily, public finances are restored t o a healthy 
state, and the economic outlook has been stabilized.  WT/TPR/M/360 • Paraguay  
 
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  4.170.   It is important now for Paraguay to continue to develop its regional and bilateral 
cooperative trading relationships, while at the same time participating actively in the regular work 
of the WTO, expanding trade with other Members, and striving to diversify its own economy.  
4.171.   We certainly look forward ourselves to greater economic cooperation with Paraguay in the 
future, especially in the tourism sector. Although the value of two -way trade betw een us at 
present is only some US$47 million per year, we are sure that the multilateral trading mechanism 
that bonds us together through the WTO provides plenty of opportunities for us to develop closer 
trade and economic links.  
4.172.   Indeed, it was encouraging  that in July of this year, President Horacio Manuel Cartes Jara  
paid his third officially visit to the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu, to celebrate the 60th anniversary of friendship between our two governments and people.  
This visit not only strengthened the relationship further but also allowed us to explore the 
possibilities for new business opportunities with Paraguay in the future, which we are sure 
welcomed.  
4.173.   I would like to conclude by wishing Paraguay a most success ful and constructive Trade 
Policy Review.  
GUATEMALA  
4.174.   I would like to express my concern and echo the words of the colleagues who preceded me 
in speaking about the natural disasters that have battered our region, especially Mexico, which 
suffered two extreme ly powerful earthquakes, and about the victims of the disasters in the 
Caribbean, particularly Dominica, with the devastating  damage it is facing at this time.  
4.175.   Relations between Guatemala and Paraguay are based on close ties of friendship, 
cooperation and  convergence, as evidenced by the Tourism Cooperation Agreement signed 
in 2015, under which our countries established strategies to strengthen community tourism as a 
factor of economic development.  
4.176.   It is important to note the robust performance of the Para guayan economy since its 
previous trade policy review. The policy of fiscal consolidation established by the enactment of the 
Law on fiscal responsibility in 2013 has led to an improvement in tax collection.  
4.177.   As regards intellectual property, Paraguay has m ade a number of changes to its legislation 
concerning patents, trademarks, copyright and related rights and has created the National 
Intellectual Property Directorate (DINAPI), which is actively engaged in taking preventive 
measures through its Directorate -General of Enforcement to punish counterfeiting and piracy.  
4.178.   Turning to today's review of Paraguay's trade policies, we note that the review period saw 
the enactment of the Law on the protection of competition and its implementing Regulations, as 
well as significant structural reforms that have contributed to economic growth by enhancing 
fluidity and efficiency in trade with third countries.  
4.179.   We hope to continue strengthening our important ties with Paraguay and wish its 
delegation a successful conclusion to its country's trade policy review.  
PANAMA  
4.180.   As did other delegations before me, I would first of all like to express our condolences and 
sympathy to the countries and above all to the victims of the recent series of natural disasters in 
the region.  
4.181.   Panama  commends Paraguay for its economic performance during the period under review. 
The Paraguayan economy has proved resilient in the face of the international fluctuations in food 
and raw material prices, recording sustained growth and moderate inflation ove r the past five 
years, all of which have made it one of the region's leaders in macroeconomic development in 
recent years.  WT/TPR/M/360 • Paraguay  
 
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  4.182.   Trade between Paraguay and Panama has increased significantly over the past few years, 
Panama being a major purchaser of medicines a nd machinery in Paraguay; Paraguay, for its part, 
is an important partner and buyer from our Colón free zone.  
4.183.   We also emphasize Panama's foreign direct investment in Paraguay, where Panama comes 
fifth worldwide and second in the Latin American region in t erms of the amounts invested in 
Paraguay these past few years.  
4.184.   We underscore Paraguay's importance as a regional MERCOSUR partner, particularly in 
agricultural markets, where Paraguay is the fourth largest producer of soya beans and comes sixth 
as regards bovine meat.  
4.185.   Paraguay is a committed member of this Organization and others in Geneva, as evidenced 
by the work done by Ambassador Aguirre and his entire team, particularly in the negotiations and 
discussions on agriculture. It plays a leading role in vari ous groups, such as Group of Landlocked 
Developing Countries. It has driven issues critical to this Group, for example electronic commerce 
as a development tool, and has pushed forward proposals and actively participated in the 
preparations for MC11.  
4.186.   We we lcome Paraguay's recent initiatives, which include the development of infrastructure 
to link countries in the region. Paraguay and the region already have infrastructure works such as 
the continent's two largest dam schemes that supply electricity to Argen tina and Brazil. There is 
also the Government's 2030 plan for the country, which provides a roadmap for stability and a 
clear strategy to ensure that trade becomes a tool for development in the years to come.  
4.187.   Although macroeconomic stability and the countr y's institutional strategies are taking 
Paraguay forward on the path to development, major challenges still need to be addressed. These 
include reducing extreme poverty and inequality, whose indicators are high in relation to the 
country's southern neighbo urs. Paraguay must also continue diversifying its economy and exports 
beyond primary food commodities and aim to build an economy based on value -added chains for 
such products, thus benefiting other economic and social sectors.  
4.188.   Before concluding, we would  like to highlight the significant steps that Paraguay has taken 
in recent years towards a more open and inclusive economy. Sound management of the national 
treasury has led to fiscal surpluses in recent years, along with robust economic growth. It only 
remains for us to wish the delegation of Paraguay a successful review.  
HONDURAS  
4.189.   As other Members have already done, Honduras expresses solidarity with the people who 
are suffering the consequences of the recent natural disasters. Our thoughts and prayers are  with 
them.  
4.190.   The Government and Secretariat reports both show that the Paraguayan economy 
performed robustly during the period under review and that real GDP grew at an average annual 
rate of 4.7% between 2011 and 2016, underpinned by a stable macroeconomic  environment which 
favoured growth and held down inflation expectations.  
4.191.   We also note that the unemployment rate remained moderate during the review period, 
generally fluctuating between 5% and 6%, and that Paraguay's balance -of-payments current 
account wa s in surplus every year with the exception of 2012 and 2015.  
4.192.   Through most of the review period Paraguay added substantially to its stock of 
international reserves, and at the end of 2016, the net balance amounted to US$7,144  million, or 
the equivalent of 26% of GDP.  
4.193.   We further note that the services sector as a whole is still the main component of GDP, as 
illustrated by the fact that in 2016 it generated 55.4% of current gross value added, and that 
Paraguay is one of the world's leading producers and expo rters of hydroelectric power.  WT/TPR/M/360 • Paraguay  
 
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  4.194.   Agriculture and livestock are important activities for Paraguay. This has enabled it to 
become the world's sixth largest producer and fourth largest exporter of soya beans and soya 
by-products, in addition to being a major pro ducer and exporter of beef.  
4.195.   We underscore Paraguay's trade strategy, framed by the guidelines of its National 
Development Plan (PND) 2014 -2030, which is influenced by the country's participation in 
MERCOSUR and is based on key pillars such as the country's  traditional exports of agricultural, 
livestock and forestry products; the export of hydroelectric power to neighbouring countries; and 
commercial intermediation.  
4.196.   We further note that the review period saw the enactment of the Law on the protection of 
competition and its implementing Regulations in 2013, as well as the establishment of the National 
Competition Commission. As regards intellectual property rights, Paraguay made a number of 
changes to the laws governing patents, copyright and related rights, and trademarks; it also 
created the National Intellectual Property Directorate (DINAPI).  
4.197.   It is relevant to mention that the reforms undertaken included the adoption of a 
computerized risk management system, the implementation of an authorized economic oper ator 
programme, the introduction of the express consignment procedure, electronic transmission of air 
manifests, and the digitalization of customs documents, as well as the Law on electronic 
commerce, which contains provisions to protect consumers or users  by laying down obligations 
and responsibilities for suppliers of goods and services and for intermediaries.  
4.198.   Honduras congratulates the Republic of Paraguay for its substantial efforts and progress 
over the review period and wishes it every success.  
PAKIS TAN 
4.199.   Like others, we want to express our sympathy and condolences to Mexico and other 
countries of that region which have been adversely affected by the natural disasters recently.  
4.200.   Pakistan commends Paraguay on its economic performance. Since the last revie w of 
Paraguay in 2011, the country 's economy has performed very well. Real gross domestic product 
(GDP) grew at an average annual rate of 4.7% between 2011 and 2016. The most vibrant 
economic sectors during 2011 -2016 were financial services, construction, general government and 
the agricultural sector, which is also the main source of exports. The unemployment rate remained 
moderate during the review period, generally fluctuating between 5% and 6%.  
4.201.   Paraguay continued to implement prudent fiscal policies and  improve its management of 
taxation. New legislation was introduced, establishing rules aimed at ensuring the stability and 
sustainability of public finances. This policy of fiscal consolidation has led to an improvement in tax 
collection and an increase i n the share of tax revenue in GDP.  
4.202.   During the review period, Paraguay 's balance of payments current account has been in 
surplus every year with the exception of 2012 and 2015. Exports and imports of g oods and 
non-factor services amounted to the equivalent  of 83.7% of GDP in 2016. The structure of 
Paraguay 's merchandise exports remained stable during 2011 -2016, with main export items 
consisting of chemical products, leather articles, and textiles and clothing and imports were 
machinery and transport equipme nt, chemical products and mineral products.  
4.203.   Pakistan appreciates that 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 borde r 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 
further enhance the investment climate: The Law on public -private partnership of 20 13, the 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  practices that may be deemed 
discriminatory, and provides for fiscal incentives for up to 20 years.  WT/TPR/M/360 • Paraguay  
 
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  4.204.   We have keenly observed that Paraguay 's intellectual property legislation underwent a 
number of changes during the review period involving the decrees impl ementing the laws 
governing patents, copyright and related rights, and trademarks. The National Intellectual Property 
Directorate (DINAPI) was created, partly for the purpose of improving the enforcement of 
intellectual property rights. Another change cons isted 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 year periods.  
4.205.   Pakistan has noted that services are making headway in Paraguay. Financial services are 
considerably liberalized, however with some limitations. 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 compa ny to be able to obtain authorization to provide insurance services, it must be legally 
established in Paraguay as a public limited company and exclusively devoted to providing 
insurance. On the other hand, 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. In the telecommunications sector a number of 
new rules have been approved since the last  review in connection with the procedure for obtaining 
licenses  and authorizations for the supply of Internet access and data transmission services, 
satellite transmission of occasional signals and cable service. The requirements for obtaining 
licenses  and authorizations are the same for domestic and foreign companies. Airlines may be up 
to 100% foreign -owned. Paraguay is also one of the world 's leading producers and exporters of 
hydro -electric energy. We feel that liberal policies will enhance productivity  even further.  
4.206.   Here in Geneva, we wish to commend the active role of Paraguay in the work of the WTO, 
particularly in the negotiating groups such as the Cairns Group and the G -20 in the realm of 
agriculture.  
4.207.   In the end, we want to wish Paraguay a very suc cessful and fruitful Trade Policy Review.  
JAPAN  
4.208.   Like other speakers, Japan would like to extend its condolences and sympathy to Mexico 
which is now suffering from the natural disasters. My condolences also go to the Caribbean region 
which has also suffered  from the national disasters.  
4.209.   Although Paraguay and Japan are geographically distant from each other, we have 
developed a long friendly relationship. As is still fresh in our memory, last year, we had the 80th 
Anniversary of the Japanese Immigration in Par aguay. At this occasion, many Paraguayan and 
Japanese people celebrated this Anniversary and everlasting friendly relationship.  
4.210.   Japan will make continuous efforts to maintain and further develop the strong ties between 
us. 
4.211.   According to the Secretariat repo rt, since the last Trade Policy Review in 2011, the 
country 's economy has performed robustly. GDP grew at an average annual rate of 4.7 %. 
Inflation rate has been stabilized at less than 5%, thanks to the ambitious Inflation targeting 
policy by the Central  Bank Paraguay (BCP). Exchange rate has also been stable.  
4.212.   Japan hopes Paraguay will maintain such economic stability.  
4.213.   In terms of investment regime, Japan commends the country 's continuous efforts on 
improving investment environment as the driving force of  economic growth. In addition to the 
aforementioned macroeconomic stability, its geographic location surrounded by the large 
consuming areas in South America and the huge young population are now attracting foreign 
direct investment.  
4.214.   Moreover, its economic  policies, such as low income tax rate, incentive regimes including 
the "Maquila Regime " and supply of cheap and abundant electric power, contribute to the economy 
of Paraguay. We commend those investment policies. Also, the appointment of technocrats to 
ministers has also increased the credibility of the government 's economic policy management.  WT/TPR/M/360 • Paraguay  
 
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  4.215.   However, we are aware that there is room for improvement in the Paraguayan economy. 
In particular, the stability of electricity supply, further progress of transpor tation infrastructure, 
the expansion of investment in education and public health are areas where Japan urges 
Paraguayan Government to make further efforts.  
4.216.   In conclusion, I would like to express our strong wish to continue cooperat ion between 
Paraguay and  Japan. We wish Paraguay a successful and productive TPR.  
PERU  
4.217.   We join those who have expressed solidarity with Mexico and the other countries of the 
region affected by the recent natural disasters.  
4.218.   Peru welcomes Paraguay's excellent economic performance d uring the review period, in 
particular as regards its annual growth rates, its exports of clean energy and the important role of 
trade in the country's economy. We also commend Paraguay for its stable public finances, legal 
developments with respect to pub lic and private investment, social protection programmes, and 
the promotion of MSME integration. Thanks to Ambassador Casanueva's statement, we are pleased 
to note the Paraguayan economy's considerable potential for diversification, a challenge that we 
share along with several other countries in the region.  
4.219.   Trade relations between Peru and Paraguay are conducted within a special legal 
framework, Economic Complementarity Agreement No. 58, concluded under the LAIA, which also 
comprises the other MERCOSUR memb ers, and thanks to which many tariffs have been removed 
and economic cooperation has been encouraged. Although this Agreement has led to a significant 
increase in trade between Peru and MERCOSUR as a whole, we can see that much remains to be 
done in develo ping our trade relationship with Paraguay, which still shows a major 
balance -of-trade surplus in favour of the latter.  
4.220.   Although we did not submit any questions for this review, we have highlighted the points 
made in the Secretariat report concerning the i mport licensing system for certain products, the 
imposition of charges other than the tariff, and the application of some tariffs in excess of the 
bound levels.  
4.221.   We would also like to take this opportunity to acknowledge the important work being done 
by the  delegation of Paraguay in this Organization, playing an active role in promoting higher 
levels of trade liberalization, putting forward its own concrete proposals and submissions, and 
giving prompt consideration to the initiatives of other Members.  
4.222.   To con clude, my delegation wishes Paraguay all the very best in pursuing its course of 
economic and trade development, for which it can count on Peru as a partner, and a successful 
fourth trade policy review.  
INDONESIA  
4.223.   Indonesia applauds Paraguay for the robust performance of its economy, as underpinned, 
among others, by a stable macroeconomic environment, by low inflation expectations, and through 
the implementation of prudent fiscal policies.  
4.224.   Paraguay is an important trade partner of Indonesia. In the last five  years, in the period 
between 2012 and  2016, Paraguay and Indonesia have been enjoying a good trading relationship. 
Indonesian exports value to Paraguay has been experiencing a positive average yearly growth 
compared to the negative values accruing to the other three MERCOSUR economies. And amongst 
MERCOSUR economies, Indonesian -Paraguay bilateral trade value experienced the largest average 
growth of 68.9% – a significant growth level compared to that accruing to other MERCOSUR 
trading partners – which are recorded to accrue at a level below 5% or even at a negative digit.  
4.225.   But on top of the above -mentioned growth of bilateral trade, Indonesia wishes to highlight 
that Paraguay has been capitalizing more from this fruitful trade ties. Over the same period of 
2012 to 2016, Paraguay 's exports into Indonesia experienced a staggering average yearly growth 
of 199.4%.  WT/TPR/M/360 • Paraguay  
 
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  4.226.   Indonesia would surely want  to balance this export performance. Apart from tobacco, 
Indonesia wishes to diversify our exports of automotive parts and a ccessories – which have been 
amongst the main products Indonesia exports to Paraguay.  
4.227.   In light of Paraguay 's new "national automotive policy " (the PAN) introduced in 2012, and 
in light of the fact that the most recent notification submitted by Paraguay to the Committee of 
Subsidies and Countervailing  Measure was made in 2010, Indonesia urges Paraguay to notify the 
WTO on its incentives programmes under the national automotive policy.  
URUGUAY  
4.228.   Uruguay extends a most cordial welcome to the delegation of Paragu ay in this important 
forum within the multilateral system. Our country maintains friendly and constructive relations 
with Paraguay in the various spheres covered by our bilateral relations, which include not only 
policy, the economy and trade, but also coo peration and culture.  
4.229.   Political and trade relations between Uruguay and Paraguay have grown stronger since the 
previous review of Paraguay's trade policies in 2011. In April and June 2015, the President of 
Uruguay, Mr Tabaré Vázquez, and the President of P araguay, Mr Horacio Cartes, met in the course 
of official visits. Both reaffirmed their commitment to the adoption at the Common Market Council 
meeting in July 2015 of a decision aimed at preparing a plan of action to achieve MERCOSUR's 
goals and further d evelop the free trade zone. They also reiterated their undertaking to continue 
advocating for a successful outcome of the negotiations on the signing of a partnership agreement 
between MERCOSUR and the European Union.  
4.230.   There is a significant amount of bilat eral trade between Uruguay and Paraguay, with 
Paraguay ranking 11th in 2016 as a destination of Uruguayan exports, which amounted to 
US$223  million in that year. In 2014 -2016, Uruguay's main export products were tobacco, 
pharmaceuticals, and paper and pape rboard. In that same period, imports from Paraguay 
consisted mainly of cereals, products of the food industry, and tobacco.  
4.231.   Uruguay would briefly like to mention its interest in having a bilateral meeting with the 
Paraguayan delegation to discuss the appli cation of non -automatic licences for cement imports, 
which are facing difficulties when it comes to successfully completing the export process.  
4.232.   Uruguay commends Paraguay for its ongoing work in the WTO and the Goods Council in 
particular, its work relatin g to e -commerce, and the proposals put forward in the Committee on 
Agriculture, the Cairns Group and the group of Friends of MSMEs.  
4.233.   Uruguay wishes Paraguay a very successful fourth trade policy review.  
H.E.  AMBASSADOR  LUIS  FERNANDO  ÁVALOS  (HEAD  OF DELEGAT ION) 
4.234.   This is simply to express thanks for all the statements, comments and observations, which 
we will, of course, need to take into account. I would kindly ask the WTO Secretariat to remedy an 
omission, due to my workload and perhaps a little added pressu re, by including a mention of 
Paraguay's solidarity with the Mexican people struck by this devastating earthquake, so that this is 
recorded in the minutes.  WT/TPR/M/360 • Paraguay  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF PARAGUAY  AND ADDITIONAL C OMMENTS  
H.E.  AMBASSADOR  LUIS  FERNANDO  ÁVALOS 
Opening remarks  
5.1.  Good morning to you all. I would like to extend the Paraguayan Government's renewed 
thanks to Ambassador Juan Carlos González for conducting this meeting.  
5.2.  I am also grateful to Ambassador Héctor Casanueva for acting as the discussant in  this 
review and for his valuable and insightful presentation, which covered a number of aspects relating 
not only to the Paraguayan economy but also to the country's history and culture.  
5.3.  My thanks go to Members that have expressed interest by offering the ir comments last 
Wednesday and submitting advance questions, which have all been answered, including those that 
arrived after the scheduled deadline.  
5.4.  It has been an honour for me to spend two days with WTO Members reflecting and sharing 
points of view on t he trade policies implemented by Paraguay over the past six years.  
Recognition of the reforms implemented  
5.5.  I reiterate that Paraguay undertook major trade policy reforms during the period under 
review in order to consolidate the foundations for high, sust ainable and socially inclusive growth. I 
would like to point out that we have achieved tangible results, whilst recognizing that there is still 
much to be done. We appreciate the comments received during this review, because they will be 
very useful in mee ting the challenges we have set ourselves for the medium and long term.  
5.6.  We would like to take this excellent opportunity to clarify a few points that we had no time to 
address on the first day.  
5.7.  We will focus mainly on areas highlighted by Members, and if y ou will allow me, Mr  Chairman, 
I will now give the floor to the members of my delegation, starting with the Vice -Minister for Trade 
in the Ministry of Industry and Trade, Mr Oscar Stark.  
Diversification, export supply and export destinations  
5.8.  Although Par aguay faces challenges in terms of export supply and diversification of its export 
markets, the Government encourages policies to address these issues by establishing 
public -private sectoral roundtables that link and promote export competitiveness and 
diversification.  
5.9.  Acting through the Ministry of Industry and Trade, Paraguay has developed a long -term 
Industrial Development Plan (PDI). The PDI is a management tool aimed at promoting the 
development of value chains as well as industrial clusters and sector s with clear comparative 
advantages and an export -oriented approach, through capital and knowledge accumulation, 
continuous improvement of the business climate and an investment attraction process.  
5.10.   Paraguay has made major strides in promoting the use of re newable energy, in particular 
under Law No. 2748/05 on the promotion of biofuels and its implementing Regulations, whose 
objective is to establish and drive forward programmes that encourage firms and industries to set 
up in the country's new poles of deve lopment under a production chain and cluster approach. 
Industrial production and agricultural raw materials, as well as the domestic use of biofuels, have 
thus been declared of national interest.  
5.11.   There has also been a drive to promote institutional develop ment through the establishment 
of the Observatory for Renewable Energy and the creation of renewable energy directorates in the 
binational hydroelectric enterprises (Itaipú and Yacyretá), the National Electricity Authority (ANDE) 
and the National Institute  of Technology, Standardization and Metrology (INTN). In addition, we 
should mention the enactment of Law No. 5183/14 on incentives for the import of electric vehicles 
and the installation of recharge stations for electric vehicles.  WT/TPR/M/360 • Paraguay  
 
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  5.12.   The import licences int roduced by Paraguay seek to improve product quality control, 
compliance with technical regulations aimed at preventing misleading practices, and the protection 
of human health or safety, as well as that of animal or plant life or health. It is important to  
emphasize that only a dozen products are subject to licensing in Paraguay.  
5.13.   In most cases these are automatic licences, which are processed and granted within an 
average of one to five days. There are also non -automatic licences, which are granted within a n 
average of one to ten days.  
5.14.   All import licensing procedures are carried out electronically for trade facilitation purposes. 
The licensing requirements are available on the web and have been notified to the WTO.  
Notifications  
5.15.   As regards the notification o bligation under the various Agreements, I would like to report 
that this year saw the submission of a series of notifications under the Agreements on Technical 
Barriers to Trade, Subsidies and Countervailing Measures, Anti -Dumping, Import Licensing, and 
Sanitary and Phytosanitary Measures. I would also point out that we are working on all the 
notifications outstanding for this year.  
5.16.   Regarding the question on fossil fuel production, these products are no longer exploited but 
there are viable technical and e conomic expectations concerning natural gas extraction; this would 
make it possible to refine, transport, store and market this fuel. In accordance with the relevant 
legislation, exploitation will be contingent upon environmental protection and impact.  
5.17.   Lastly, I am grateful for the offer made by the Government of Japan to work on 
strengthening services, specifically in the tourism sector. We will be in touch shortly to address the 
subject. Thank you.  
5.18.   I now give the floor to the Director of Integration in th e Ministry of Finance, Mr  José Cuevas 
Sanchez.  
5.19.   I would like to refer specifically to comments on the increase in the level of Paraguay's 
public debt, which in fact grew by only 9.3% of GDP in the five -year period 2012 -2017, well below 
the 13.8% rate in the  rest of the region.  
5.20.   Paraguay's debt -to-GDP ratio is 23.8%, the lowest in Latin America and the Caribbean and 
far below the regional average of 58%. Furthermore, the World Bank points out that the national 
debt, in relation to Paraguay's rate of economic growth and tax structure, is sustainable as long as 
it remains under 45% of GDP.  
5.21.   The report published by the Inter -American Development Bank (IADB), entitled "Routes to 
Growth in a New Trade World ", places Paraguay among the countries that do not require a ny 
increase in tax rates to meet the commitments undertaken.  
5.22.   Likewise, the latest international bond issue consolidated Paraguay's position as an 
economically stable and financially sustainable country, as demand largely outstripped available 
supply and wa s also reflected in the 6.1% paid interest rate, below the average for 30 -year bonds 
issued by countries with the same credit rating (BB), which stood at 6.29%.  
5.23.   Lastly, it should be emphasized that at the end of the period, the capital and interest would 
represent no more than 1.4% of GDP at the most and less than 11% of tax revenue; the weight of 
the latest bond issue for an amount of US$1,000,000 will be only 0.8% of GDP in the year 2044, 
when the capital falls due.  
Domestic tariffs exceeding the bound levels  
5.24.   Paraguay has bound all of its tariff lines ad valorem , with a ceiling rate of 35%, and remains 
committed to applying these levels at the highest to imports in accordance with the 
most-favoured -nation principle.  WT/TPR/M/360 • Paraguay  
 
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  5.25.   In most cases, the MERCOSUR common ex ternal tariff is the same as the domestic tariff, 
and Decree No. 6655/16 guarantees that the bound rate is the maximum level applied to each 
tariff line; its application is guaranteed by the presentation of a certificate of origin.  
5.26.   On the other hand, it s hould be pointed out that Paraguay trades with countries all over the 
world, some of which are not WTO Members and to which Paraguay may apply tariffs above the 
bound levels.  
5.27.   I now give the floor to the Director of Customs Procedures in the National Custom s 
Directorate, Mr Américo Pereira Rodi.  
5.28.   Positive comments were made in this room on Wednesday about some of the numerous 
processes under way in the National Customs Directorate. I would like to offer some further 
information in that Paraguay has made signi ficant headway in using technology to fulfil its 
international commitments regarding trade facilitation, security and the efficiency of tax collection.  
5.29.   One aspect worthy of mention in that regard is the strengthening of the single window for 
imports for th e electronic processing of documents required for goods entering the country, 
including electronic payment of fees and taxes.  
5.30.   I should also mention the entry into operation of the computerized system for receiving 
advance information on air freight, based on IATA standards, which has substantially reduced the 
time needed for clearance. Another stage of the system is currently being completed for the 
purposes of river and land transport operations.  
5.31.   Likewise, work is under way to complete the automation of th e risk management system at 
Customs, identifying operations that present some type of risk. As the situation stands, the 
number of physical inspections were reduced from 84% in 2014 to 30% in 2016.  
5.32.   The authorized economic operator system for streamlining p rocedures is also in operation. 
We have started the authorized economic operator migration process provided for under the WTO 
Trade Facilitation Agreement, which, in addition to streamlining, includes the security component 
based on the WCO's Framework of Standards to Secure and Facilitate Global Trade.  
5.33.   Further major strides have been made in the digital management of customs procedures. 
The express consignment procedure is entirely electronic, that is, without any hard copies. By the 
end of this year, cust oms processing by means of digital signature will be extended as a 
mandatory requirement to all customs regimes, in line with measures to protect the environment 
and to ensure greater integrity of information.  
H.E. Ambassador Luis Fernando Ávalos  
5.34.   Mr Chairm an, there is not enough time to address all the questions raised by Members, but 
in recognition of the interest they have shown, I would like to highlight a few of the actions 
currently being or to be implemented in areas in which interest has been voiced in this room.  
5.35.   The outstanding notifications under the Trade Facilitation Agreement, that is, Categories B 
and C measures, to which frequent reference was made on Wednesday, are due to be submitted 
shortly, before the end of this year.  
5.36.   I should also like to  express appreciation for the interest shown in education and innovation 
and briefly mention the fact that, for the first time in 150 years, Paraguay has incorporated a 
series of measures under the "Don Carlos Antonio López" (BECAL) National Postgraduate M aster's 
and Doctoral Programme, for an amount of US$71 million, aimed at teachers and university 
graduates engaged in specialized studies abroad, with an emphasis on science and technology.  
5.37.   Moreover, the National Council for Science and Technology (CONACYT ) has set up the 
National Research Incentive Programme (PRONII), whose objective is, inter alia , to strengthen, 
consolidate and expand the country's scientific community. In 2015, the Ministry of Education and 
Science and the OECD also signed an agreement with a view to Paraguay's participation in the 
Pisa for Development programme.  WT/TPR/M/360 • Paraguay  
 
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  5.38.   As regards poverty reduction and inequality, I would briefly emphasize that this is one of the 
three pillars of the National Development Plan 2030, which details all aspects of the issue and sets 
tangible goals for specifically attending to vulnerable groups; these goals are consistent with the 
Sustainable Development Goals.  
5.39.   Unfortunately, there is not enough time to deal with all the areas mentioned. Should there 
be any specific  questions that were not answered above – I can inform Members that we are in the 
process of consulting with the competent authorities regarding the issue of sanitary requirements 
for the importation of meat – replies will be provided promptly. I can also inform the 
European  Union that its additional written question received yesterday will be answered shortly.  
Conclusions  
5.40.   We are greatly encouraged by the fact that Members have acknowledged our efforts and we 
agree that there are major challenges and opport unities ahead of us. We know that we have 
achieved significant progress, which is helping us to promote structural changes to the economy, 
expand production, increase export supply, generate greater value added for our products, and 
integrate our enterpris es in regional and global value chains.  
5.41.   It has also been heartening to hear positive comments from the States represented by the 
delegates who are here today regarding Paraguay and its WTO commitments. On behalf of my 
country, I reiterate our determination  to continue contributing actively and constructively to a 
stronger multilateral trading system.  
5.42.   To conclude this fourth review of its trade policies, Paraguay wishes to renew its 
commitment to open and inclusive trade, which we regard as a means of raisin g standards of 
living, ensuring full employment and a large and steadily growing volume of real income, as stated 
in the preamble to the Agreement establishing this Organization. Likewise, we express renewed 
confidence in the multilateral trading system; w e need it to be strong, transparent and predictable, 
with clear rules and without distortions undermining the competitiveness of economies and 
especially the least developed economies.  
5.43.   Our next challenge is the Buenos Aires Ministerial Conference, where, a gain, we will have to 
be creative and pragmatic if we are to demonstrate once more that, despite our differences, the 
WTO can deliver outcomes favourable to all. Thank you.  
DISCUSSANT  
5.44.   Having listened last Wednesday to the statements made by the Vice -Minist er and the 
27 Missions that took the floor, and looked at the questions raised and answers given during the 
review, I congratulate Paraguay on the well -deserved compliments it has received.  
5.45.   This fourth review of Paraguay's trade policies has given us a bet ter insight into the 
country's trade policy developments since the preceding review. The reports submitted and the 
statements made by the delegation and the Missions have also enabled us to immerse ourselves 
more fully in Paraguay's reality in terms of its  institutional dimension, socio -economic situation, 
development trends, and the opportunities and challenges ahead.  
5.46.   My impression is that Wednesday's discussions were fruitful, not only in highlighting 
Paraguay's sound economic and trade performance over the review period, but also in encouraging 
the country to take some of its improvements forward in the future.  
5.47.   It could be said that the fruitful day spent on Wednesday fulfilled the objective for which this 
mechanism was created, because it gives Members  a transparent and enlightening view of one of 
their peers.  
5.48.   When one of us – Paraguay in this case – decides to undergo a comprehensive review of its 
economy and trade policies, it contributes to strengthening the multilateral system.  WT/TPR/M/360 • Paraguay  
 
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  5.49.   The Organization gai ns in cohesion and solidarity, because each of the Members that took 
the floor to ask questions or offer comments and suggestions did so in the best interest of the 
country reviewed and the system as a whole.  
5.50.   For its part, the country under review hears th e different perspectives from which its 
situation is viewed and is rewarded by an objective and cooperative analysis of its strengths, 
shortcomings and opportunities.  
5.51.   In my opinion, this system of periodic review is one of the fundamental pillars of the WT O. 
And since a Member's trade policy is not conducted in a vacuum but reflects a series of 
institutional, historical and contextual factors, as well as the country's aspirations and day -to-day 
practices, it is not limited to figures and regulatory framewor ks, which are of course very 
important, but it provides a comprehensive insight into a country's actual circumstances. We can 
see this from the reports and from the statements made by the authorities and the other 
Members.  
5.52.   I wish to express my appreciation  for the statements made a little while ago by the 
delegation of Paraguay, which gave us extensive and substantial replies to some of the questions 
and comments from Members. I also welcome the new background information that the delegation 
has just provid ed. My thanks go to the Vice -Minister for the useful additional details received 
concerning the reforms, public debt, social policies, customs procedures, intellectual property 
rights, environmental issues, and certain trade policy measures that have been of concern to 
Members.  
5.53.   Overall, the delegations have remarked positively on the progress achieved, the reforms 
and programmes instituted by the Government, the latter's commitment to the multilateral 
system, and the country's wellbeing. Some of the featur es highlighted were: (i) Paraguay' 
favourable macroeconomic data; (ii) its leading exports of clean and renewable energy and its 
agricultural exports; (iii) its situation as a landlocked country working on its economic integration; 
(iv) its efforts to impr ove connectivity; (v) its role in MERCOSUR; (vi) its valuable contribution to 
negotiating groups in the WTO, such as the Cairns Group and the G -20; (vii) its strategy to 
combat poverty and social inequalities under the Paraguay 2030 Development Plan; (viii ) its 
commitment to women's empowerment; and (ix) its leadership and engagement with respect to 
trade facilitation, a feature almost unanimously singled out by Members as clear proof of the 
country's commitment to the multilateral system.  
5.54.   I could go on lis ting topics but have limited myself to a selection of the comments offered.  
5.55.   There were also concerns and requests for clarification in areas of particular interest to 
some Members, such as: (i) continuing to implement reforms in order to diversify exports ; 
(ii) improving infrastructure; (iii) limiting the introduction of import licences; (iv) adopting stronger 
intellectual property legislation in order to combat piracy; (v) bringing informal labour under 
control; and (vi) making further progress in overcom ing corrupt practices and fostering 
institutional and cultural transparency as a basis for social coexistence.  
5.56.   An indication of Paraguay's commitment to and concern about social issues and its efforts to 
improve matters is the forthcoming organization in A sunción of the Ministerial Meeting on social 
protection, entitled "Towards Inclusive Social Protection Systems in Latin America and the 
Caribbean" and held under the auspices of the OECD Regional Programme for Latin America and 
the Caribbean. The agenda wi ll be centered  on adapting the region's social protection systems to 
the new challenges of globalization as well as the issues of ageing and digitalization that are 
re-shaping the world of work and challenging the traditional social policy model.  
5.57.   As we hav e seen, Paraguay is committed to rules -based free trade, and I am sure that it will 
continue addressing both the existing challenges and any new ones that lie ahead in order to 
advance on its path to development.  
5.58.   I am confident that all the reforms introd uced during the review period will continue to 
strengthen Paraguay's institutional framework, its economy and its social and environmental 
development. I have no doubt that when the time comes for the fifth review of its trade policies, WT/TPR/M/360 • Paraguay  
 
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  we will see further  progress in the country's circumstances, along with positive performance 
indicators.  
5.59.   Mr Chairman, Vice -Ministers, members of the Paraguayan delegation, it only remains for me 
to encourage the country to maintain its constructive spirit and its contributio n and inputs to this 
Organization.  
5.60.   Che aguijevete ndéve11 (Thank you very much).  
EUROPEAN  UNION  
5.61.   Let me first thank  the delegation of Paraguay for the comprehensive overview presented 
last Wednesday  as well as this morning  of the main developments occurred d uring the review 
period.  
5.62.   The EU is pleased to note that this review has been very useful for better understanding the 
trade policy of Paraguay and we hope  that Paraguay will duly take into account some of the few 
challenges highlighted by Members.  
5.63.   The EU  also very much  appreciates the timely replies provided to the EU questions  in 
advance of this meeting . We have  submitted as already noted one follow -up question regarding 
the "Representation " Law 194/1993 and we hope to receive the reply in due course.  
5.64.   In conclusion, the EU thanks the delegation of Paraguay for its very constructive 
participation in this exercise.  
UNITED  STATES  
5.65.   The United States would like to thank the delegation of Paraguay for answers to our 
previously submitted written questions, and to s incerely express our appreciation for the 
constructive work that went into the TPR process and to overall preparation by everyone, including 
the Secretariat, for this Trade Policy Review. Thank you as well to the Honourable Minister Avalos 
for his statemen t this morning addressing issues raised on day one of the TPR and Ambassador 
Casanueva for his very capable insights as discussant.  
5.66.   The United States very much appreciates its relationship with Paraguay in trade and 
beyond, and we place great importance on  our collaboration with Ambassador Aguirre and his 
team here at the WTO. We have been following with very great interest news of economic growth, 
reform, and challenges faced in the country and we applaud efforts to improve education and 
innovation, the bu siness environment and investment climate, improve transparency, and reduce 
inefficiencies in bureaucracy. The United States is enthusiastic about a number of cooperative 
efforts to protect sustainable development, increase security, and develop commercial  and cultural 
connections.  
5.67.   We have submitted also three follow -up questions through the Secretariat this morning; 
those questions concern tariff line situations where the applied rate exceeds Paraguay 's bound 
rate, the VAT exemp tion, and intellectual prope rty in the volume of copyright registration cases. 
We look forward to receiving answers to those questions in due course.  
5.68.   We note with particular interest certain issues raised in this morning 's statements.  
5.69.   We would respectfully urge the Government of Para guay to address outstanding WTO 
notifications here at the WTO, and has mentioned on day one of the Review, to conclude its 
regulatory review of the U.S. food safety system and to further work on enforcement and 
protection of intellectual property rights. I n addition, we would encourage the Government to 
continue improving  its transportation infrastructure, diversifying exports, and thoughtfully 
attracting increased foreign investment.  
                                                
11 Text in Guaraní as it is pronounced.  WT/TPR/M/360 • Paraguay  
 
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  5.70.   The United States looks forward to continued active cooperation with Para guay as a valued 
partner her e in Geneva and elsewhere, and trust that everyone holds the TPR as a valuable 
exercise.  
5.71.   Please accept our best regards and our wish for safe travels to those returning to capital.  
H.E.  AMBASSADOR  LUIS  FERNANDO  ÁVALOS  (HEAD  OF DELEGATION)  
5.72.   As regards the very few statements delivered today, namely those of the European Union 
and the United States, I reiterate our particular interest in the issues raised for consideration. Our 
country regards both the European Union and the United  States as very important partners and 
allies with whom we pursue our agenda in a very special way through mixed commissions and 
periodic meetings, in the case of the United States, even through special agreements such as the 
memorandum of understanding on  intellectual property, with which we are rigorously complying so 
as to focus a little more on developing this area at the bilateral level, both with the 
European  Union and with the United States. We do, however, take note of their comments on this 
second day. 
5.73.   It only remains for me to thank the delegations whose presence has borne witness to their 
interest in the conduct of our economy and trade as well as our compliance with the WTO rules. 
Many thanks to each of these countries for their questions and par ticipation in this fourth review, 
to the WTO Secretariat for preparing this meeting with considerable care and attention to detail, to 
you, Mr  Chairman, to our discussant, the Ambassador of Chile, and lastly to our Permanent Mission 
here in Geneva for its support in cutting our task to the minimum. Please allow me a few more 
words of thanks to the delegation that accompanied us, made up of representatives of Paraguayan 
government institutions and other entities, such as the Ministry of Industry and Trade, t he Ministry 
of Finance, the Directorate -General of Customs, the Central Bank of Paraguay, and to other bodies 
for their active cooperation, within their respective spheres of competence, in preparing the replies 
to Members' questions.  
5.74.   We are very satisfied  with this review. The burden is certainly a heavy one but at the same 
time it represents an opportunity, since it prompts us to commit to forging ahead on this upward 
economic and social path, which will undoubtedly make us even more successful in running  our 
country, so many grateful thanks to all.  
5.75.   Thank you.  WT/TPR/M/360 • Paraguay  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This fourth Trade Policy Review has provided us with the opportunity to deepen our 
understanding of Paraguay 's trade and investment policies, and in particular , of the several 
reforms and changes introduced since the last Review in 2011. I would like to thank the 
Paraguayan delegation led by Ambassador Luis Fernando Ávalos, Vice -Minister of Foreign Affairs 
and Integration, for their constructive engagement throu ghout this exercise. I would also like to 
thank our discussant, Ambassador Héctor Casanueva of Chile, for his interesting a nd 
thought -provoking remarks, as well as the 27 delegations which have taken the floor the first day, 
for their active participation in this review.  
6.2.  Paraguay was commended for its commitment to trade liberalization and for achieving 
sustained growth during the review period, with real GDP expanding at an annual average rate of 
4.7% between 2011 and 2017, while maintaining a relatively l ow level of inflation, a current 
account surplus and a high level of foreign exchange reserves. Members also praised Paraguay for 
the fiscal rule implemented under its Fiscal Responsibility Law of 2013 and encouraged it to 
continue on this path in order to  consolidate sustainable growth. Members were also appreciative 
of Paraguay 's National Development Plan 2030, which aims at poverty alleviation, social 
development and economic growth, and integration into the world economy. Members highlighted 
that Paragu ay is among the world 's ten largest exporters of soybeans, meat and electrical power. 
However, they also noted that trade continues to be concentrated in a few trading partners and 
products, and encouraged Paraguay to continue to seek the diversification o f its export base to 
mitigate vulnerabilities to potential external shocks.  
6.3.  Members acknowledged Paraguay 's strong commitment to the multilateral trading system 
and its active participation in the WTO. In particular, they praised its leadership as coordina tor of 
the Group of Landlocked Countries and its valuable contribution to the negotiation of the Trade 
Facilitation Agreement and to the Negotiations on Agriculture. While been commended for having 
ratified the Trade Facilitation Agreement in March 2016, P araguay was invited to submit its list of 
pending commitments under the agreement. I have taken note of Paraguay 's commitment to 
submit them by the end of the year. Paraguay was also invited to accept the Protocol of 
Amendment to the TRIPS Agreement. Some Members also encouraged Paraguay to put up to date 
its notifications in areas such as domestic support in agriculture, import licensing, and customs 
valuation. I have also taken note of Paraguay 's commitment to update its notifications. With 
respect to reg ional integration and trade agreements, some Members highlighted Paraguay 's 
participation in MERCOSUR through which it is currently holding trade negotiations with a number 
of trading partners.  
6.4.  Regarding trade facilitation, Members noted the progress made by Paraguay with respect to 
the adoption of a risk management system, the introduction of an Approved Economic Operator 
programme and the digitalization of customs documents. They expressed interest to further their 
information about other measures Paragua y intends to take to facilitate trade, including the use of 
digital certificates of origin and the use of the Single Window for imports. Several Members 
commended Paraguay for the adoption of its recent E -commerce Law.  
6.5.  Members expressed their appreciation  for the recent measures adopted by Paraguay aimed at 
improving the business environment and attracting investment, in particular the Law on Public -
Private Partnership, the Investment Protection Law, and the Law on Public Works, which were seen 
as providin g new opportunities for foreign direct investment. Appreciation was also expressed with 
respect to the new Law on Small and Medium Enterprises and regarding Paraguay 's acceptance to 
the OECD 's Global Forum on Transparency and Exchange of Information for Ta x Purposes. 
However, some Members were of the view that further regulatory reforms would improve 
Paraguay 's business environment and help address informality.  
6.6.  Members appreciated that Paraguay has an open trade regime with a relatively low applied 
average MFN tariff of 8.4% in 2017. Nevertheless, some Members expressed concern with respect 
to the fact that for some 80 tariff lines the applied rate exceeded the bound rate. Paraguay has 
explained in the course of this TPR that in accordance with national legi slation, the WTO bound 
rate is applied in these cases.  WT/TPR/M/360 • Paraguay  
 
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  6.7.  Paraguay was commended for making limited use of non -tariff measures. Members noted, 
however, that there were certain areas where improvements could be made, including with respect 
to some SPS restric tions and the use of non -automatic import licences for certain products, such 
as textiles and clothing, footwear, cement, agrochemicals and cell phones. Some Members 
expressed concerns over the use of reference values for imports of clothing products and 
requested information on plans to eliminate them. Paraguay replied that this was a temporary, 
precautionary measure. Some Members also expressed concern about the use of other duties and 
charges on imports, in particular of consular fees.  
6.8.  Members commended Paraguay for having implemented competition policy legislation and 
having created a competition authority. They raised questions on a number of issues related to the 
new legislation, including its scope and application, the review of mergers and acquisitio ns and its 
relationship with MERCOSUR legislation on the area.  
6.9.  Noting that Paraguay maintains several incentives programmes, including a National 
Automotive Programme, some Members enquired about the reasons for not notifying them to the 
WTO. Paraguay has  explained that it had recently updated its subsidies notification and that it 
considered that the incentives it grants are not subsidies in the terms established in the Subsidies 
and Countervailing Measures Agreement. Members acknowledged the changes intr oduced by 
Paraguay to its legislation on government procurement to enhance transparency. Some Members 
encouraged Paraguay to make more use of international tendering procedures; others invited it to 
become a party to the GPA.  
6.10.   Members commended Paraguay fo r the improvement achieved in the enforcement and 
protection of intellectual property rights (IPRs) since the last review, mainly through the 
introduction of legislation, the creation of the Intellectual Property National Office (DINAPI) and 
the introducti on of a National Intellectual Property Plan. However, some Members were of the view 
that more work is needed to tackle remaining enforcement concerns, including with respect to the 
protection of patents, copyright and trademarks, as well as of undisclosed test results or other 
data. In this respect, Paraguay acknowledged that further efforts were required and expressed 
hopes that the strengthening of the intellectual property system would become a tool to promote 
economic development.  
6.11.   Members noted Paraguay 's role as a major producer and exporter of electricity. In this 
respect, Paraguay was praised for being at the forefront of the production and exportation of 
renewable energy. Members commended Paraguay for maintaining an open services regime, with 
virtua lly no restrictions on foreign investment. They raised specific questions regarding: cross -
border trade in services, including in insurance services; national treatment for foreign banks; the 
supervision, regulation and resilience of the financial system; market access in 
telecommunications; access for foreign broadband service suppliers; and incentives granted to the 
tourism sector, among others.  
6.12.   Paraguay has provided answers to the more than 150 advance written questions raised by 
Members. This TPR will b e successfully concluded once Paraguay has replied to all outstanding 
questions that emerged during the meeting in a month 's time. I believe Members will feel 
encouraged by the reforms undertaken, the good results achieved and the action plans outlined in 
Paraguay 's presentation to deal with the remaining challenges. I hope that the discussion held 
during this review will prove useful to Paraguay in the continued implementation of economic and 
trade reforms and in its pursuit of policies to achieve sustaina ble growth and increase 
competitiveness.  
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