WORLD TRADE  
ORGANIZATION   
WT/TPR/M/245 
25 May 2011 
 (11-2590) 
Trade Policy Review Body 
27 and 29 April 2011  
 
 
 
TRADE POLICY REVIEW 
 
PARAGUAY 
 
Minutes of Meeting 
 
Chairperson:  H.E. Mr Mario Matus (Chile) 
 
   Page 
 
I. 
INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II.  OPENING STATEMENT BY THE REPR ESENTATIVE OF PARAGUAY 5  
III.  STATEMENT BY THE DISCUSSANT 7  
IV.  STATEMENTS BY MEMBERS 11  
V.  REPLIES BY THE REPRESENTATIVE  OF PARAGUAY AND ADDITIONAL 
COMMENTS 28 
VI.  CONCLUDING REMARKS BY THE CHAIRPERSON 32  
 
 
Note:   Advance written questions by WTO Member s and the replies provided by the Government of 
Paraguay are reproduced in document WT/TPR/M /245/Add.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/245 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The third Trade Policy Review of Paraguay was held on 27 and 29 April 2011.  The 
Chairperson, H.E. Mr Mario Matus (Chile), we lcomed the delegation of Paraguay, headed by 
Ambassador Manuel María Cáceres, Vice-Minister for Economic Relations and Integration at the 
Ministry of Foreign Affairs, and the discu ssant, H.E. Mr Fernando de Mateo (Mexico). 
2. The Chairperson recalled the purpose of Trade Po licy Reviews and the main elements of the 
procedures for the meeting.  The report by the G overnment of Paraguay was contained in document 
WT/TPR/G/245 and that of the WTO Secretariat in document WT/TPR/S/245. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance of the meeting and had been forwarded to th e delegation of Paraguay:  El Salvador;  Mexico;  
United States;  Colombia;  Canada;  Hong Kong, Chin a;  Chile;  India;  Japan;  and the European 
Union.  The delegation of Ecuador had submitted written questions after the two-week deadline. 
4. The Chairman said that he had carefully considered the reports prepared for the meeting by 
Paraguay and the Secretariat.  Paraguay's present Trade Policy Review provided an opportunity to 
discuss certain aspects of the country's trade policy that  were of interest to all the Members, including 
first and foremost, free trade.  The high degree of openness of Paraguay's trade regime was a reminder 
of the advantages of free trade as a motor for developm ent.  In the case of Paraguay, that was reflected 
in the country's heavy dependence on foreign tr ade (98 per cent of GDP), its scarce recourse to 
non-tariff measures, its relatively low MFN tariff (under 10 per cent), and its trade facilitation 
measures such as the streamlining of customs pr ocedures and the setting up of single windows for 
exports and imports.  All of those things had en abled Paraguay to double its per capita GDP between 
2004 and 2010, with a two-digit GDP growth rate and significant foreign trade expansion.  Bearing in 
mind the importance of the services sector for the Paraguayan economy and the progress achieved in market access in certain subsectors, it would be useful to know how Paraguay planned to deepen the 
opening up process and consolid ate it at multilateral level. 
5. A second systemic issue was transparency and accountability, two concepts which had 
become cornerstones of the multilateral trading system.  In Paraguay's case, that was evidenced by the 
country's efforts to comply with its multilatera l commitments, including measures to improve its 
notification system and introduce necessary institutiona l reforms, for example in the area of technical 
regulations.  The Chairman wished to commend Pa raguay for having adopted the same responsible 
approach in the area of fiscal consolidation and public debt reduction during the period under review. 
6. A third systemic issue was intellectual property, which was one of the three substantive pillars 
of the WTO and remained a source of considerab le discussion among Members, particularly with 
regard to compliance.  Thus, in Paraguay's case, al though efforts had certainly been made to improve 
intellectual property right enforcement, it continued to  be an area in which much remained to be done.  
In that connection, the Paraguayan authorities themse lves mentioned in their report that a draft decree 
containing the implementing regulations for the Pate nts Law was in the process of being approved.  
It would be interesting to receive further informatio n on the changes provided for in that draft, and on 
where matters stood as regards the process of adopting the draft law on geographical indications.  The large number of questions raised regarding inte llectual property testified to Members' interest in 
the subject. 
7. The fourth systemic issue was incentives.  N on-distorting stimulus packages were among the 
tools available at the WTO, particularly for de veloping country Members.  Paraguay maintained a 
number of incentive schemes, including special export regimes such as in-bond processing ( maquila ) 
and free zones, concerning which Members had requested  further information.  It would be interesting 
to know whether there had been any cost-benefit analysis for such pr ogrammes, particularly in view WT/TPR/M/245 
Page 4  
 
  of their apparently limited use.  It would also help  to have further information on the new draft law on 
industrial policy, which appeared to envisage a new system of incentives. 
8. The fifth systemic issue concerned developm ent facilitators.  Reducing discrimination and 
increasing predictability were important elements in supporting sustainable development processes.  
It was therefore worth highlighting the reform s that Paraguay had made to its government 
procurement system with a view to improving its efficiency and transpar ency, although certain 
elements of the system had been used to favour do mestic production.  Apparently, the factors that 
limited the country's development were its landlocke d status, its lack of a modern and equitable tax 
system and its lack of a competition policy.  In  the case of competition, the announced preliminary 
draft law to fill the regulatory gap in that area was a welcome development.  WT/TPR/M/245 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF PARAGUAY 
9. Paraguay views this Trade Policy Review as an opportunity to inform you all of the progress 
we have made in the implementation of the polic ies introduced by the Government of President 
Fernando Lugo, in particular with regard to the integration and consistenc y of our foreign trade 
policy. 
10. Paraguay's current dynamism stems mainly from three factors:  an unprecedented increase in 
agricultural output, buoyant domestic demand a nd a favourable international environment. 
11. This process has taken place in the context of fiscal policy stability, improved taxation 
structure and administration, sound monetary policy,  the considerable accumulation of international 
reserves, an increase in per capita GDP and financial system solvency, all factors which have 
contributed to the country's steady growth wh ile reducing poverty and improving the general 
well-being of the population.  This enables us to lo ok forward to an optimistic future, one of sustained 
economic growth with social inclusion. 
12. In the period under review, the Paraguayan economy enjoyed an upswing, with real GDP 
growing by an average of 4.9 per cent per year.  In 2009, however, a severe drought, combined with 
the world economic crisis, caused the economy to cont ract, bringing this growth cycle to a halt.  
Paraguay recovered rapidly from this situation in 2010, with record GDP growth of 15.3 per cent.  
This growth rate is the best economic performance r ecorded in the historical statistical series that 
began in 1950. 
13. With regard to public finances, in the pe riod under review, the G overnment generated a 
primary surplus averaging around 2 per cent by implementing prudent fiscal policies and improving 
the structure and administration of taxation.  This enabled it to increase public spending significantly 
in response to the economic crisis in 2009. 
14. As far as monetary policy is concerned, domestic macroeconomic developments were 
underpinned by the expansionary measures applie d by the Central Bank of Paraguay (BCP) in 
response to the threat of financial turbulence.  Such measures also boosted economic recovery as from 
the third quarter of 2009.  International reserve levels rose significantly, from US$604 million at the 
end of 2002 to around US$4,300 million at the end of  2010.  Total public debt has been shrinking 
since 2003 and by the end of 2010 accounted for around 13 per cent of GDP.  In this favourable 
context, per capita GDP also increased, doublin g from US$1,272 to US$2,733 in the period 
2005-2010. 
15. Paraguay's foreign trade was also strengthened by this economic growth thanks to the good 
performance of the agricultural sector, the favourable  international environment and the development 
of dynamic industrial sectors that have boosted the export of non-traditional goods.  The same trend 
was seen in trade in services, which grew mainly in the financial, tourism and transport sectors.  
Investment also showed positive signs.  Foreign Dir ect Investment (FDI) flows increased considerably 
in the period under review.  In 2010, FDI was eight times higher than in 2005 and currently stands at 
1.5 per cent of GDP. 
16. Paraguay's economy is one of the most open in the region to trade and investment, as shown 
by the high share of exports and imports in re lation to GDP.  This being the case, Paraguay's 
economic policy has always been geared to wards strengthening trade and investment. 
17. Paraguay considers it vital to respect freedom of tr ansit in international trade.  In this regard, 
the facilitation and streamlining of trade compensate to  some extent for the additional costs we face as 
a developing landlocked country integrating itself into world trade. WT/TPR/M/245 
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  18. The Government of Paraguay believes in free in ternational trade and the need for multilateral 
trade rules as a framework  for the generation and development of  productive activities.  It therefore 
continues to deepen its integration into MERCOSU R and to participate actively in WTO negotiations, 
advocating the fair and equitable participation of the developing and least developed countries in 
international trade and investment. 
19. The Government attaches great importance to agriculture and to the three pillars of the 
multilateral agricultural negotiations and views these elements as fundamental to achieving the true 
liberalization and reform of the world agricultural market.  While it is important not to neglect the 
Rounds' development agenda issues, Paraguay consid ers progress in opening up the agricultural sector 
to truly competitive conditions as the basis for the success of the Doha Round, in the belief that a 
multilateral framework of freer, more balanced and e quitable trade will help to ensure a fairer world 
for our citizens and, in particular, the most needy sectors of society. 
20. Economic growth with social inclusion is th e principle guiding the Government's economic 
policy.  To this end it has drawn up strategi c objectives and plans aimed at boosting economic 
development.  Efforts are focused on three main de velopment pillars:  raising productivity, promoting 
equity and strengthening State institutions. 
21. One of Paraguay's main objectives is to combat  poverty and inequality.  The Administration 
is therefore committed to carrying out structural reform aimed at generating investment and employment opportunities.  Paraguay is aware that the benefits of open trad e, economic integration 
and growth must extend to the whole of society, without exception. 
22. We believe in the effectiveness of the policies we  apply and in the need for a freer and fairer 
multilateral system, one free of obstacles and di stortion, which benefits all members of the 
international community.  If we manage to conclu de the Doha Round in the terms in which the 
Development Agenda was devised, we will be in a position to benefit from trade, and will pass these 
benefits on to our citizens.  WT/TPR/M/245 
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  III. STATEMENT BY THE DISCUSSANT, H.E. MR FERNANDO DE MATEO 
(MEXICO) 
23. I would like to congratulate the Government  of Paraguay on having avoided the use of 
protectionist policies during the massive global recessi on, despite the significant drop in the country's 
real GDP, which fell by 3.2 per cent in 2009.  Its use of fiscal and monetary policy as a way out of 
this serious slump was entirely appropriate.  Such incentives contributed to a GDP increase of 
15.3 per cent in 2010, the highest ever recorded.  Paraguay has also avoide d applying protectionist 
policies, despite real exchange rate appreciati on of more than 20 per cent in recent years. 
24. The dose of fiscal and monetary medicine administered by the Government was, however, 
perhaps higher than necessary, causing inflation to shoot up by 7.2 per cent in 2010, with inflationary 
increases that were particularly marked in the second half of the year.  The Government estimates that 
inflation in 2011 will be sli ghtly lower than in 2010. 
25. Nevertheless, it is clear that these monetary a nd fiscal measures are not the only reason for the 
sharp rise in GDP and inflation.  The sudden increase  in external demand for Paraguayan exports - in 
particular soya and meat - played a significant role, firstly by increasing aggregate demand and 
secondly due to the absence of a monetary sterilization policy for foreign exchange entering the 
Central Bank's coffers.  I should just like to ment ion one point:  paragraph 8 in Chapter I of the 
Secretariat Report states that net exports of goods and services contributed negatively to GDP due to 
"strong import growth".  Here, a distinction must be made between the definition of "net exports" 
used by the Secretariat, i.e. the current account ba lance (total exports less total imports), and "net 
exports" meaning total exports less  imports used to produce the exports.  With a definition such as 
this, exports contributed very positively to GDP growth. 
26. All in all, Paraguay's good economic performance meant that per capita GDP doubled 
between 2004 and 2010, growing by an impressive 7 per cent a year and reaching US$4,900 in terms 
of purchasing power.  While congratulating the Pa raguayan Government on this performance, a note 
of caution should also be sounded, as care must be take n to contain inflationary pressures.  Inflation is 
the worst poor man's tax, and income distribution is very unequal in Paraguay, with a Gini coefficient 
above 0.5 per cent (with zero being perfect distri bution of income and 1 a total concentration). 
27. In this respect, although the fiscal reform must be applauded, having increased government 
revenue in absolute terms and as a percentage of GDP (despite remaining one of the lowest in the 
region), the Paraguayan Congress has not managed to approve the natural persons' income tax, and 
tax revenue continues to be exces sively dependent on VAT and import tariffs.  This has a direct 
impact on the redistribution of income, in a country where poverty levels continue to be high despite 
the Government's intensive efforts to reduce them.  Efforts to increase taxes on agricultural activities, 
which have benefited most from the export boom, have  also failed;  this would give the Government 
more capacity to tackle problems associated w ith extreme poverty through transfer programmes for 
low-income households.  Such transfers would be conditional upon the youngest dependants attending 
school and the family undergoing regular medical checks.  This type of anti-poverty scheme has been 
very successful in a number of Latin American countries. 
28. Despite the Government's efforts to improve the business environment, Paraguay continues to 
occupy a low position in the World Bank ranking, alt hough it rates well in attracting foreign investors.  
The Secretariat Report notes that the State owns all underground deposits.  This is common in most 
Latin American countries, including Mexico, and can  be traced back to the Spanish colonial era. 
29. The year 2010 saw explosive growth in foreign trade.  Exports shot up by 37 per cent and 
imports by 40 per cent.  Paraguay is one of th e most foreign trade-dependent countries in Latin 
America.  Its total trade in goods and services accounts for almost 100 per cent of GDP. WT/TPR/M/245 
Page 8  
 
  30. While Paraguay has made substantial progress regarding trade facilitation measures, as a 
landlocked country attention is drawn to the fact that it maintains a series of restrictions on the 
provision of transport services.  According to th e Secretariat Report, extra costs for transport 
amounted to around 4 per cent of GDP and almost 7 pe r cent of the value of recorded exports.  River 
transport in particular - more than 70 per cent of Pa raguay's foreign trade is transported by river - is 
subject to a number of measures that restrict compet ition, both between Para guayan nationals and, in 
particular, with foreign suppliers.  Fewer restricti ons seem to be imposed on air services, which may 
explain why 10 per cent of the country's exports, in  value terms, are transported by air, despite 
accounting for only 0.2 per cent in terms of volume.  It would therefore seem appropriate to liberalize 
both international and cabotage river transport services. 
31. As far as services are concerned, Paraguay is generally open to foreign competition, 
especially with regard to establishment, i.e. s upply mode 3.  Its WTO commitments, however, are 
limited to certain financial and tourism services.  Moreover, the State monopoly in the area of telecommunications is a significant factor inhibiting both national and internatio nal competition.  As a 
result, the country has one of the lowest numbers of fixed telephones per 100 inhabitants in 
Latin America.  In fact, the market was not opened up for the provision of broadband until very 
recently, which meant that Paraguay lagged  way behind in access to Internet services. 
32. It is hoped that world commodity prices will remain high over the next few years, as this 
would help Paraguay in its devel opment efforts;  however, the fact that Paraguay's exports are 
dependent on a small number of pr oducts and, to a lesser extent, a sm all number of markets, renders 
the country extremely vulnerable to any external shock, as seen during the 2008-2009 crisis.  One of 
the Government's priorities should be to implement measures to diversify both products and markets.  
The greater the number of export products and expor t markets, the less volatile a country's economic 
development will be. 
33. While Paraguay's main export markets are on th e American continent, with most exports 
destined for the country's ME RCOSUR partners, imports into  Paraguay from other American 
countries have decreased considerably in the last si x years and now account for only one half of total 
imports, down from two thirds.  Ch ina and other Asian countries have  become Paraguay's foremost 
suppliers, accounting for more than a third of tota l imports.  The same trend has been seen in a 
number of other Latin American countries, where th e comparative advantages in respect of various 
finished goods, whether end products or inputs, ar e being transferred to Asia.  The full picture, 
however, will only become clear when the WTO, in cooperation with other organizations, presents us 
with trade figures in terms of value added,  and not in gross terms as it has until now. 
34. The average protection of 8.5 per cent applie d by Paraguay to non-agricultural products in 
2009 is higher than the median of the WTO Member ship as a whole.  In this respect Paraguay ranks 
72
nd, with the EU countries taken as a single unit in the ranking.  However, as far as agricultural 
products are concerned, Paraguay ranks 35th, with an average tariff of 10 per cent.  While this 
highlights the urgent need for the Membership to c onclude the agricultural negotiations with a view to 
the liberalization of the agricultural sector, Paragua y's average tariff will possibly fall a number of 
places in the ranking once it adopts the MERCOSUR common external tariff on 31 December this year. 
35. It would, however, be unfair not to mention that  the average tariff weighted by the value of 
imports from outside the MERCOSUR area was 2. 8 per cent.  This results partly from the 
implementation of various industr ial promotion programmes, from free zones to in-bond processing.  WT/TPR/M/245 
 Page 9 
 
 
  36. At the beginning of my statement I congratul ated Paraguay on having avoided applying 
protectionist measures in response to the recent worl d crisis.  I reiterate my  congratulations, even 
though there have been some slippages, such as the introduction of new requirements on registration 
and prior licensing for imports of clothing and certa in meat products, and th e continued and renewed 
use of measures restricting exports of certain raw materials such as wood, copper, tin and aluminium. 
37. Some of the questions put forward by Members within the context of this TPR concern these 
new registration and import licensing requirements.  Ot her questions are related to the application of 
the MERCOSUR common external tariff, customs procedures and clearance, transparency in the 
preparation and notification of technical regulat ions and standards, and equivalence and risk 
assessment.  In this respect, it is important that Pa raguay report on the steps it is taking to improve its 
mechanism for notifying standards to the WTO, which would help to provide specific information on 
internal processes as regards the preparation and implementation of TBT regulations and sanitary and phytosanitary measures.  Some Members' questions also touched on Paraguay's regimes in respect of 
export subsidies, competition, govern ment procurement and intellectua l property rights, as well as its 
policies relating to the manufacturing sector and services. 
38. With regard to government procurement, it shou ld be noted that in Paraguay procurement is 
used as an instrument to protect domestic production.  Only large projects are subject to international 
tenders.  In fact, international competitive biddin g accounts for barely 0.8 per cent of all competitive 
bidding processes.  Nevertheless, out of a market of approximately US$1,500 million a year, two fifths of this amount have been  awarded to international bidders. 
39. In the area of trade facilitati on, it must be recognized that the Government of Paraguay has 
made intensive efforts to streamline customs administ ration and facilitate trade, in particular through 
advanced mechanisms such as the Single Window fo r Imports and Exports, the automation of customs 
clearance and the establishment of the SOFIA system, and the use of risk management systems, which 
have, amongst other things, reduced the average dur ation of customs clearance procedures.  Some 
procedures, however, still seem complex, such as the mandatory use of customs agents.  It has also 
been noted that despite the introduction of trad e facilitation measures, the percentage of import 
operations subject to checks, whether documentary or  physical, continues to be high:  more than 
70 per cent of operations are subject to documentary checks, i.e. the red channel, while only one tenth 
of total imports pass through the green channel, r eceiving immediate clearance.   We are aware that 
this takes place in a context where trading and ope rating costs for companies depend considerably on 
the efficiency and length of clearance procedures and that this has become a key factor inhibiting the 
competitiveness of companies in some developing countries. 
40. It is also noted that Paraguay implements various fiscal incentive programmes to attract 
investment and promote exports, such as the free zone and maquila  regimes.  In the case of free zones 
and maquila , the profits deriving from the activities under these programmes are subject to 
preferential tax rates of 0.5 and 1.0 per cent respec tively.  With regard to the special automotive 
regime, Paraguay has established requirements such as the gradual incorporation of domestic inputs 
and components.  As a general matter, it is im portant to notify these incentive programmes to the 
WTO or explain why they are not being notified. 
41. As regards competition policy, it is considered  vital that Paraguay approve the preliminary 
draft law on competition policy, which is currently be ing reviewed by Congress, in order to provide 
certainty to economic operators and attract more foreign investment. 
42. It is noted that the area of intellectual property right protection continues to require further 
attention, despite the intensive efforts already ma de to improve enforcement, including institutional 
strengthening and enhanced crimin al penalties and border controls. WT/TPR/M/245 
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  43. In conclusion, although I have highlighted a numb er of areas that could be improved, it must 
be acknowledged that Paraguay sta nds out as being an open economy, one whose continuous efforts 
and concrete actions to make itself more co mpetitive, reduce poverty and improve the general 
well-being of its population are evident and highly commendable.  WT/TPR/M/245 
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  IV. STATEMENTS BY MEMBERS 
EL SALVADOR 
 
44. We note with satisfaction that since Paraguay's last review in 2005, the country's trade and 
investment regime has opened up in a way that refl ects economic recovery derived for the most part 
from agricultural production accompanied by so und macroeconomic fundamentals, favourable 
external financing conditions and strong export earnings, most notably from soya and beef.  
According to the Secretariat Report, the country  enjoys a more favourable economic environment 
than during the period prior to the present review. 
45. We note that improvements continue to be made  in the area of trade facilitation and that 
customs procedures have been streamlined, mainly by setting up single windows for imports and 
exports.  This is of particular  importance given that Paraguay is  a small country with limited 
resources.  Having introduced similar windows, El Sa lvador recognizes the considerable effort that 
this involves. 
46. We also note that Paraguay has made efforts to  strengthen its institutional capacity for foreign 
trade, for instance by establishing a body responsib le for ensuring compliance with commitments to 
notify technical regulations.  In this context,  we commend Paraguay's ongoing efforts to improve 
transparency, in particular since the creation of the National Information and Notification System, the 
responsibilities of which include the notification of technical regulations, standards and conformity 
assessment procedures. 
47. In light of the above, and with a view to increasing productivity and strengthening foreign 
investment, the Government of Paraguay establis hed a specialized agency for the promotion of 
investment and exports, REDIEX, within the fra mework of the Economic and Social Strategic 
Plan 2008-2013. 
48. In the multilateral sphere, Paraguay and El Salva dor are united by similar interests.  We are 
both small economies characterized by a number of factors that hinder our integration into 
international trade.  In the context of the Doha Round, we are members of groups such as the Small 
Vulnerable Economies, which promote the establishm ent of flexibilities in various negotiating areas.  
At bilateral level, El Salvador maintains very im portant friendly ties with Paraguay.  As far as our 
trade relations are concerned, Sa lvadoran exports for the 2010 financ ial year were up 15 per cent from 
2009 and were concentrated in sectors such as metalw orking - in which they most notably consisted 
of a wide range of agricultural tools - plastic furn iture and medicines.  El Salvador's imports from 
Paraguay consisted mainly of chemical industr y products, paper and pape rboard products, and 
textiles, with clothing and paper and paperboard being the most dynamic sectors.  71 per cent of 
imports from Paraguay were products such as medicines for human use. 
49. In addition to the above, we consider Paraguay to be a high-potential market for Salvadoran 
exports such as food and non-food agro-industrial pr oducts, food and beverages, tobacco and tobacco 
substitutes, products of the chemical industry, pape r and paperboard products  and wood pulp, and we 
hope that there will soon be a more intense flow of  trade in these products between the two countries. 
50. Within the multilateral framework, Paraguay h as shown clear signs of its support for the 
multilateral trading system and has been particular ly constructive in vari ous committees and groups, 
while maintaining an appropriate balance with its tr ade and systemic interests.  As the Vice-Minister 
very clearly said, Paraguay and El Salvador agree that the work carried out at the WTO is vital to 
ensuring that our countries really take advantage of  the benefits of trade, which continues to be a 
fundamental tool for the development of our populations. WT/TPR/M/245 
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  51. On this occasion, we would like to highlight th e very important role played by the delegation 
of Paraguay in the regular session of the TRI PS Council, currently chaired by the Paraguayan 
ambassador.  In this context, Members have said th at they would like the normal work framework to 
continue to include workshops and open discussions  on topics of interest to the Membership as a 
whole, including intellectual property and public hea lth, technology transfer, and issues relating to 
experience sharing and capacity building in areas such as cooperation and technical assistance. 
UNITED STATES 
 
52. The United States continues to commend the G overnment of Paraguay for its commitment to 
reform.  The Government reports that its commi tment was validated economically in 2010 by an 
increase of 14.5 per cent in real GDP over 2009.  Pa raguay has reason to state proudly that this growth 
was not only "the highest rate in the region" but also set "a new record in the country's economic history".  The Government further reports that total imports rose by 45 per cent in 2010 over 2009.  We appreciate and applaud Paraguay's resolve to resi st erecting import barriers, and take special note 
of the Government's acknowledgement that "hi gher purchases of capital goods are a positive sign for 
economic growth as they will strengthen agricultura l infrastructure and hence the competitiveness of 
the productive sector".  This is a positive exampl e of how trade fosters development and how open 
markets can lead to economic prosperity.  Imports  of capital goods can be critical to the growth 
necessary for developing countries to compete in the global market place. 
53. Paraguay's trade with the United States has incr eased during the last seven years, after a 
steady decline over several years due to a long-term  recession of the Paraguayan economy.  Our total 
two-way trade with Paraguay increased by about 32 per cent in 2010 over 2009.  More than a dozen 
US multinational firms have subsidiaries in Paraguay, including firms in the computer, 
agro-industrial, telecom, banking, and other services industries.  Some 75 US businesses have agents 
or representatives in Paraguay, and more than  3,000 US citizens reside in your country. 
54. Since Paraguay's last TPR, our two governments have continued to deepen our dialogue, a 
dialogue that encompasses a wide range of issues, in cluding the adequate and effective protection of 
intellectual property rights and hemispheric efforts to  ensure sustainable development.  Our exchanges 
in various fora complement our cooperation here  at the WTO as well as our constructive engagement 
with other countries in our hemisphere.  Our dial ogue with Paraguay is underpinned by trade and 
investment linkages that remain strong, despite fl uctuations in recent years.  We hope that this 
dialogue, started by our two Presidents in 2003, w ill help continue to ex pand the economic linkages 
between our countries. 
55. The United States and Paraguay exchanged ideas on a number of bilateral issues of mutual 
interest during an October 2010 United States-Pa raguay Joint Commission on Trade and Investment 
meeting in Asunción.  We discussed ongoing work  under a bilateral Memo randum of Understanding 
(MOU) on intellectual property rights issues wh ich enumerates Paraguayan commitments to 
implement institutional and legal reforms and to st rengthen intellectual property rights enforcement 
and prosecution.  The current MOU will remain in e ffect through the end of 2011.  Both sides also 
discussed joint work in creating opportunities fo r small and medium-sized enterprises in the 
United States and Paraguay. 
56. The United States is pleased to note that Para guay's main objectives in the Doha Round are to 
gain "effective access" to the markets of both developing and de veloped countries.  We understand 
how, as a landlocked country with limited exports , Paraguay would consider  the Doha Round as one 
of the critical "pillars of economic recovery and poverty reduction in deve loping countries".  The 
United States welcomes Paraguay as an important pa rtner and stakeholder in the DDA negotiations on 
trade facilitation, and we remain hopeful that  Paraguay's commitment will help advance the 
Doha Round negotiations to a successful conclusion.  We look forward to our continuing work with  WT/TPR/M/245 
 Page 13 
 
 
  Paraguay to achieve an ambitious, balanced, and comprehensive Doha Agreement that results in 
meaningful new trade flows in industrial goods, ser vices, and agriculture and benefits all Members. 
57. Today, I would like to highlight several aspects of Paraguay's trade policy – areas where 
further progress could bring significant gains, both to Paraguay and to its tradi ng partners.  We raised 
some of these issues during Paraguay's 2005 Trade Policy Review, and we would like to take this 
opportunity today to review a few issues of current concern to the United States. 
58. Non-tariff barriers:  A number of new procedures and requirements imposed by the 
Government of Paraguay in 2 009 could make importation of pr oducts more difficult.  Since 
March 2009, the Government of Paraguay has requi red non-automatic import licences on a number of 
items, and obtaining a licence is slow, taking up to 30 days for goods that require a health 
certification.  Once issued, the certificates are valid for only 30 days. 
59. Customs procedures:  Paraguay requires specifi c documentation for exports - such as the 
commercial receipt, certificate of origin, and cargo manifest - to be certified by the Paraguayan consulate in the country of origin.  The United Stat es urges Paraguay to eliminate these requirements.  
Furthermore, Paraguay frequently makes changes in  its customs procedures, making it difficult for 
exporters to ensure that they are following the mo st current procedures.  The consequences of these 
changes can result in delayed shipments leading to  unexpected costs.  Other customs procedures of 
concern include a 2009 resolution that restricted the ports of entry for numerous goods.  And Paraguay's mandatory requirement that all compan ies operating in the country must acquire the 
services of a customs broker can add significant and unnecessary costs. 
60. Government procurement:  During Paraguay' s 2005 TPR, the United States commended the 
Government for enacting a new government procurem ent law to make the procurement process more 
transparent.  At that time, we urged the Government  to safeguard and to build on the impressive gains 
it made to decrease the costs of publicly procured goods and services as a result of its transparency 
improvements. 
61. Today, however, the situation has deteriorated  as a result of the Government's effort to 
encourage local production.  In March 2009, Paraguay, which is not a signatory to the 
WTO Agreement on Government Procurement, change d its procurement rules.  The Government of 
Paraguay gives preference to a locally produced good  even if it is up to 70 per cent more expensive 
than the imported good.  Importers of foreign goods can participate in these procurements only where 
locally manufactured products and service providers are unavailable or the Government fails to award 
a contract to a domestic supplier.  We urge the G overnment of Paraguay to re-evaluate the cost to its 
economy of these changes to its procurement rules.  We also urge the Government of Paraguay to 
reassess the benefits of GPA accession and, as a fi rst step, to become an observer to the GPA. 
62. SPS concerns:  In May 2007, the World Organi zation for Animal Health (OIE) Scientific 
Commission formally classified the United States as a controlled risk country for BSE.  The controlled risk classification recognizes that US regulatory controls are effective and that US fresh 
beef and beef products from cattle of all ages can be safely traded due to our interlocking safeguards.  
This provides strong support from an internationa lly recognized, standard-setting body that the 
science-based mitigation measures in place in the United States effec tively protect animal health and 
food safety.  Based on the OIE classification of US BSE risk status and current safeguards, we look forward to knowing Paraguay's plans for granting full market access for US beef and beef products in 
line with the international, standard-setting body. 
63. Intellectual property protection:  The United St ates continues to monitor implementation of 
the Memorandum of Understanding between the United States and Paraguay pertaining to IPR 
protection and enforcement, which was revised  in 2009 and will remain in effect through WT/TPR/M/245 
Page 14  
 
  December 2011.  While Paraguay has made impr ovements by increasing enforcement efforts, 
permanently establishing a specialized technical  unit responsible for intellectual property 
enforcement, and has recently issued guidelines for clarifying and streamlining procedures for 
administrative IPR litigation, concerns remain becau se of porous borders, ineffective prosecution of 
IPR violators, and court sentences that are insuffi cient to deter infringement .  Although a new penal 
code which became effective in 2009 increases penalties for IPR violations, prosecution of IPR 
offenders remains weak, and there are few convicti ons.  Concerns also remain about inadequate 
protection against unfair commercial use of undisclo sed test or other data generated to obtain 
marketing approval for pharmaceutical products as well as agricultural chemicals, and the 
shortcomings in Paraguay's patent regime.  We l ook forward to Paraguay's update of its efforts to 
ensure adequate and effective protec tion of intellectual property rights. 
64. It is clear to us, that while Paraguay has made  progress with regard to trade liberalization and 
internal market reform, there is more to be done, especially in the areas I have just discussed.  We 
urge the Government also to re-examine its maquila  incentives and trade-related investment measures 
in light of its obligations under the WTO Agreements that address these programmes. 
CANADA 
 
65. Economic and trade relations between Canada and Paraguay are very positive and are 
intensifying.  In 2010, bilateral trade in goods between our countries amounted to C$25.7 million.  
Relations between Canada and Para guay have become even stronger as a result of the creation of the 
Paraguay-Canada Chamber of Commerce in February  2010, which clearly reflects the fact that 
Canadian companies are taking ever greater advantage of the economic opportunities that Paraguay 
offers.  Canada is very much interested in strengt hening its relations with Pa raguay, in particular by 
promoting dialogue between the par ties within the MERCOSUR framework. 
66. Canada and Paraguay share a common view with respect to the importance that development 
tools, such as the Aid-for-Trade agenda, can play in strengthening  domestic competitiveness.  Canada 
contributes to the Inter-American Development Bank's Aid for Trade Strategic Fund, which was 
instituted in 2009 to help countries in the Americ as benefit from liberalized trade and increased 
market access by using grant resources to overcom e supply-side constraints.  Bilaterally, Canada 
delivers programming in Paraguay through the Ca nada Fund for Local Initiatives, which funds 
grassroots development initiatives in the areas of governance, human rights and gender equality.  Canada's International Developm ent Research Centre (IDRC) also supports projects in Paraguay 
through its "Think Tank Initiative".  Two Paraguayan institutions are among the 28 selected to receive 
long-term funding and bolster independent policy anal ysis in the country.  Canada's Departments of 
Environment and Human Resources Development al so spearhead bilateral environment and labour 
programming in Paraguay. 
67. Canada would like to take this opportunity to  congratulate the Paraguayan Government on the 
importance it has attached to achieving its econom ic development objectives, and the vehicle by 
which it is positioning itself to achieve those objectiv es – that being, an international trade strategy 
which promotes trade diversification of both its export base and priority markets as a means to 
accelerate Paraguay's stable integration into the glob al economy.  Canada believes that bilateral and 
regional trade initiatives complement and support multilateral trade liberalization efforts – these 
approaches are not mutually exclusive.  Conseque ntly, we are pleased to see that, as a member of 
MERCOSUR, Paraguay has signed framework agreemen ts to formally initiative preferential trade 
negotiations with various count ries outside of the region. 
68.
 The Secretariat Report highlights a number of positive developments related to Paraguay's 
efforts to reform its economy, including the stabiliz ation of public finances.  We note that Paraguay's 
economy enjoyed sustained growth during most of th e period under review, thanks largely to dynamic  WT/TPR/M/245 
 Page 15 
 
 
  agricultural production, a vital sector of Paraguay's ec onomy.  This is even more impressive against 
the backdrop of the formidable challenges f aced by the Paraguayan economy during the global 
economic downturn – challenges which Paragua y was able to expeditiously overcome. 
69. Moreover, Canada commends Para guay for implementing a number of measures since its last 
Review to streamline and modernize its trade regime, including efforts to simplify customs 
procedures and facilitate trade.  Also, as noted in the Secretariat Report, Paraguay has taken steps to 
build its institutional capacity for foreign trade, for example, through the establishment of a body 
responsible for ensuring compliance with commitments  to notify technical regulations.  Paraguay is 
open to foreign investment, its legislation guaran tees equal treatment fo r foreign and Paraguayan 
investors, and we are pleased that Paraguay belongs to several international arbitration mechanisms 
for the settlement of investment-related disputes.  Canada notes Paraguay's active engagement in the 
Doha Development negotiations and, in particular, its efforts to incr ease liberalization in agricultural 
trade.  Particularly at this critical juncture  in the Doha Round, Canada encourages Paraguay's 
sustained efforts across all areas of the negotiations. 
70. While Canada applauds Paraguay for its ongoing reform efforts, there are areas of Paraguay's 
trade policy where Canada harbours some concerns and believes that improveme nts can be made.  For 
instance, as highlighted in the Secretariat Report, further progress still has to be made in both tax 
reform and in broadening the tax base, reducing the gap betw een bound and applied tariffs, and 
opening up its market for government procurement.  Further liberalization in the area of services is 
also welcomed.  In conclusion, Canada would like to express its support for Paraguay's economic 
diversification and growth achieved since the last Review in 2005. 
HONG KONG, CHINA 
 
71. Paraguay is one of Hong Kong, China's valued trading partners in South America.  We are 
encouraged by our harmonious bilateral trad e relations.  Merchandise trade between the 
two economies totalled US$315 million in 2010, signify ing an average annual growth of 13 per cent 
since 2004.  Total trade volume recorded a more-tha n-double growth last year, and there are certainly 
plenty of opportunities for further growth. 
72. Turning to some specific aspects covered in the reports, firstly on tariffs, we note that 
Paraguay maintains a simple tariff structure and has slightly reduced its average applied MFN tariff 
rate since the last review.  However, there is, in  general, a significant gap between Paraguay's average 
applied rate at 8.5 per cent and the bound rate at 32. 4 per cent.  Besides, still over one fifth of these 
lines are subject to peaks in excess of 15 per cent.   While we commend Paraguay for its efforts in 
bringing down its tariffs, we would encourage it to reduce the gap between its bound and applied rates 
in order to enhance the certainty of its trade regime. 
73. In addition, we note from the Secretariat Re port that Paraguay imposes a number of fees and 
charges on imports, such as valuation fees, consular fees, and some other related duties.  We invite 
Paraguay to accelerate its trade liberalization efforts by reducing or eliminatin g such additional fees 
and charges. 
74. We note that agriculture accounts for almost 20 per cent of Paraguay's GDP.  We appreciate 
Paraguay's strong commitment to seeking greater liberalization of agricultural trade in the DDA negotiations.  We also commend its agricultural trade regime, with a relatively low level of 
domestic support, its zero export subsidies to agricu ltural products, and the abolition of export taxes 
on such products.  We would encourage Paraguay to further improve its agricultural regime by 
reducing the gap between bound and applied rates for agricultural products alongside those for other 
products. WT/TPR/M/245 
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  75. We note that Services is the largest sector in Paraguay's economy, as they account for more 
than half of its GDP.  Paraguay's commitments in Services in the Uruguay Round were free of horizontal limitation and MFN exemp tions, which is encouraging.  However, in terms of specific 
commitments, Paraguay has so far only committed in sectors related to certain financial services and tourism services.  We think there is still a signifi cant scope for Paraguay to consider taking a more 
aggressive approach in services liberalization and ma king new commitments that can better reflect the 
role and importance of the services sector in its economy. 
76. We commend Paraguay for its latest trade f acilitation measures, including the implementation 
of a single window for exports since 2006, and the same for imports last year.  These measures have 
greatly streamlined customs formalities, and reduced  the processing time required for trade in goods.  
We welcome these arrangements, and hope that Para guay will consider relaxi ng its various importer 
registration requirements and further st reamlining the relevant procedures. 
77. We also fully share the view of Paraguay that  there should not be any backsliding from the 
level of ambition inherent in Article V of the GA TT 1994 on freedom of transit in the ongoing Trade 
Facilitation negotiations.  Indeed, the same call should extend to 
Articles VIII  and X of the 
GATT 1994.  We look forward to working together with Paraguay and other Members to improve the 
existing obligations covered in the relevant Artic les of GATT, in order to further expedite the 
movement, release and clearance of goods. 
78. Regarding customs valuation, as noted in the Secretariat Report, Paraguay continues to use 
"reference values" on several occasions and for sev eral products.  We are c oncerned about Paraguay's 
apparently selective application of the practice to clothing imports from Asia.  We ask Paraguay to 
eliminate any of these discriminatory practices. 
79. We note that during the Review period some  import prohibition and licensing requirements 
have been introduced to fulfil various policy object ives.  We would encourage Paraguay to refrain 
from pursuing these prohibitions and restrictions, and from pursuing pr otectionist considerations in 
this respect. 
80. In addition, we welcome Paraguay's efforts in  improving its compliance with the various 
notification requirements under the TBT and SPS Agre ements.  The establis hment of the National 
Information Notification System is helpful in coordinating the work of government agencies in 
connection with the formulation of technical regulati ons and standards.  That said, we are aware that 
some of the notified measures have already been a dopted at the time when these notifications reached 
Members.  In addition, Paraguay has not signed up to any mutual recognition agreement, and seems 
not to accept as equivalent the technical regulations adopted or the testing carried out by its trading 
partners.  To facilitate the flow of international trade, we would encourage Paraguay to notify the 
WTO of its latest TBT and SPS measures in a timely manner, and to engage further in activities for development of mutual recognition agreements. 
BRAZIL 
 
81. Like most countries around the world, Paraguay was severely affected by the global crisis 
triggered in September 2008.  By the end of 2010 , however, economic activity had already rebounded 
and GDP was growing in excess of 14 per cent yearly, outperforming most forecasts.  For the current year, the IMF estimates a healthy 5.6 per cent GDP expansion.  Paraguay's swift recovery is a clear signal of its great potential and of the Government 's consistent efforts to  improve macroeconomic 
management. 
82. As the Secretariat correctly points out in pa ge 111 of its report, "Paraguay has abundant 
hydroelectric resources, being one of the world's la rgest generators of electricity per capita and a  WT/TPR/M/245 
 Page 17 
 
 
  major exporter".  The bi-national Itaipú hydroelect ric power station is one of the most important 
infrastructure assets for both of our countries.  Insp ired by the success of Itaipú, Brazil attaches great 
importance to future joint projects in the area of in frastructure, including (i) a second bridge across the 
Paraná River;  (ii) the bridge across the Para guay River connecting Porto Murtinho in Brazil to 
Carmelo Peralta in Paraguay;  ( iii) the Paraguay-Paraná waterway;  and (iv) the multiuse pipeline 
from Asunción to the port of Paranaguá. 
83. In addition to these key joint projects, bilate ral economic cooperation is largely diversified 
and continues to increase.  This is reflected in Br azil's role, not only in trade but also as the second 
largest source of FDI in Para guay's economy after the United States.  Our economic partnership 
transcends the bilateral sphere.  This partners hip is active and intense both in the MERCOSUR 
process and in the broader integration in South America.  Through MERCOSUR Brazil has been able 
to further support Paraguay's deve lopment strategy.  For instance, almost 50 per cent of Brazil's 
US$70 million last year to FOCEM - the MERCOSUR Structural Convergence Fund - is earmarked for the construction of the Itaipú-Villa Hayes system , an initiative that will enable Paraguay to more 
effectively convert its huge hydroelectri c resources into economic competitiveness. 
84. Finally, at the multilateral level, Brazil and Paraguay have likewise found grounds for intense 
cooperation.  Despite the challenges currently faced  by the DDA negotiations, we cannot fail to praise 
Paraguay's role as an active and constructive Member  of the WTO, including in the context of the 
G-20, over the last eight years. 
85. I could not conclude Brazil's statement without  congratulating our Paraguayan friends on the 
200
th anniversary of the country's independence, to be celebrated next month. 
GUATEMALA 
 
86. Due to its geographical location, Paraguay is k nown as the heart of America.  At the same 
time, it is a particularly interesting country.  I w ill begin with a few general facts.  Paraguay is a 
landlocked country, but has two major rivers, the Pa raguay and the Paraná, wh ich provide the country 
with enormous hydroelectric potential.  It has two large dams, one of which is  the massive Itaipú dam, 
the second biggest in the world and, according to the Secretariat Report, the largest producer of 
energy worldwide.  Paraguay also stands out in the fields of culture and sport.  And lastly, it is the 
only country in the world where you can eat a non-liquid soup:  the famous "sopa paraguaya". 
87. In relation to the TPR reports, my delegation wishes to highlight the considerable efforts 
made by Paraguay to reform and liberalize its economic and trade re gimes.  We draw particular 
attention to the fact that, since its last TPR, Pa raguay has continued to adopt measures to streamline 
and modernize its trade regime.  These efforts ha ve helped to simplify customs procedures and 
facilitate trade. 
88. Equally significant are the efforts made to st rengthen the notification process for technical 
and sanitary regulations.  We praise the work of th e National Information and Notification System in 
this respect, and encourage it to continue worki ng to ensure transparency  and the exchange of 
information with WTO Members. 
89. We also recognize that in Paraguay agriculture and livestock are economic sectors with 
considerable potential.  This is reflected by the f act that Paraguay is the fourth largest producer of 
soya and the ninth largest world exporter of beef.  However, as well as having this successful 
traditional agricultural economy, it is commendable that  Paraguay has made the diversification of its 
export base the objective and central focus of its me dium-term trade strategy.  We encourage it to 
continue in this direction. WT/TPR/M/245 
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  90. As for the challenges facing Paraguay, I believe that two should be highlighted.  First, the 
adoption of legislation on competition policy and the establishment of institutions to implement that 
legislation.  The adoption of a competition sy stem would be an important catalyst in the 
Paraguayan market and would prevent competition fro m being distorted or impeded by abuse of a 
dominant position or any other form of concentration.  The preliminary draft law prepared by the 
Ministry of Industry and Trade seems to be aimed in this direction and we therefore hope that this and 
other initiatives and projects currently being deve loped in Paraguay will lead to the efficient 
allocation of resources and, as a result, boost Paraguay's national welfare. 
91. Secondly, it has come to our attention that in Paraguay some benefits are contingent on the 
use of domestic capital goods or the involvement of  Paraguayan consultants.  In this respect, we 
believe that there is still room fo r Paraguay to further the opening and development of the government 
procurement market and we urge the country to work towards that end. 
92. Lastly, I would like to highlight Paraguay's activ e participation in all WTO spheres, its firm 
commitment to the multilateral trading system and its efforts to promote trade liberalization. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 
93. Paraguay's overall economic performance since its previous Review in 2005 has certainly 
been impressive, and we are pleased to see that it has also managed to establish such an open trade 
and investment regime over the past five years.  Average applied tariffs of 8.5 per cent are relatively 
low and Paraguay has little recourse to non-tariff m easures.  Paraguay also continues to introduce 
measures designed to facilitate trade, with the resu lt that customs procedures have been streamlined, 
mainly through the setting up of single windows for imports and exports alike.  We were not 
surprised, therefore, to learn that Paraguay's economy enjoyed sustained growth for most of the period under review, and that GDP increased annually  at an average rate of close to 5 per cent 
between 2004 and 2008. 
94. We are also pleased to see that Paraguay's foreign trade grew rapidly over the 
period 2004-2010, reaching 98 per cent of GDP, whic h reflects the high degree of openness of the 
country's economy.  The measures taken by Paraguay to deal with economic cr isis in 2009 have also 
proven to be very effective. 
95. In 2010, the economy experienced a notable r ecovery sustained by the increase in global 
prices of raw materials and by the implementation of expansionary fiscal and monetary policies.  As a 
result of continuous economic growth, Paraguay's per capita GDP has doubled over the period under 
review, reaching US$2,248 in 2009.  Real GDP growth for 2010 is expected to come in finally at 9 to 
10 per cent. 
96. As a long-time ally of Paraguay, we are very excited to see the tremendous progress and 
achievement the Government and pe ople of Paraguay have striven to  obtain in developing its trade 
and economy.  We would definitely like to stre ngthen our cooperation with Paraguay in order to 
further promote its economic growth  and prosperity.  In addition, on the multilateral trade front, we 
appreciate the active and constructive role that the Mission of Paraguay played here in Geneva in the 
WTO work during the DDA negotiations under the lead ership of Ambassador Federico González. 
COLOMBIA 
 
97. This Review is taking place at a critical time for this Organization.  We therefore consider it 
essential to highlight the important role played by the Trade Policy Review Mechanism, namely 
permitting a greater understanding of Members' trade policies and practices and an assessment of their 
impact on the functioning of the multilateral trad ing system.  Thus, after congratulating the  WT/TPR/M/245 
 Page 19 
 
 
  Paraguayan authorities on their economic manage ment during the recent financial and economic 
crisis, whereby they succeeded in preserving growth  and stability without establishing protectionist 
measures, it falls to us to point out the challeng es faced by Paraguay, as a member of the multilateral 
system. 
98. Paraguay is characterized by a high shar e of agriculture and services in GDP and 
employment.  In contrast, the manufacturing sector remains relatively small, with low productivity 
and competitiveness.  The Paraguayan economy shows a significant degree of openness. 
99. Since its last Review in 2005, Paraguay has continued to adopt measures designed to 
streamline and modernize its trade regime .  The Secretariat Report highlights, inter alia , its efforts to 
simplify customs formalities and facilitate trade, as well as its progress as regards the notification of 
technical regulations. 
100. Paraguay needs sufficient resources to continue on the path of growth.  In the light of primary 
commodity price instability and the country's maxi mum borrowing capacity, the idea is to achieve a 
stable increase in private invest ment, productivity and competitiveness. 
101. There is therefore a need for Paraguay to develo p its infrastructure and its services sector and 
afford greater security to investors.  The tools availa ble to Paraguay to achieve th is task, in the light of 
its current state of market openness, include enhan ced compliance with the multilateral trading system 
and a strengthening of its market openness policy under the WTO. 
102. According to the WTO Secretariat, Paraguay could envisage the following measures:  
increase access to its markets while seeking to bind its applied tariffs;  establish mechanisms to notify 
WTO Members of draft SPS regulations and laws and afford them the opportunity to submit 
comments;  enhance IP enforcement and combat  counterfeiting and piracy;  and make new and 
improved services commitments, including new sector s and eliminating scheduled restrictions. 
103. With regard to trade relations between Pa raguay and Colombia, as at 31 December 2010 
Colombia's trade balance with Paraguay posted a deficit of US $14.6 million, with imports of 
US$24.9 million (up 26 per cent from the previous year) and exports of US$10.3 million (up 
48 per cent from the previous year). 
104. The increase in our bilateral trade can probably be attributed to the Economic 
Complementarity Agreement concluded in 2004 with in the framework of the LAIA.  In compliance 
with the tariff reduction programme provided for in  this Agreement, Colombia has liberalized 
35 per cent of the tariff lines corresponding to the products it imports from Paraguay, while Paraguay 
has liberalized 15 per cent of the tariff lines corr esponding to its imports from Colombia.  We hope 
that this trend continues and that our trade relations will develop yet further. 
105. Reciprocal foreign direct investment between the two countries is not particularly significant.  
Paraguay's stock of investment in Colombia in  2010 represented 0.037 per cent of total foreign 
investment in our country.  Our stock of inv estment in Paraguay represented 0.6 per cent of 
Colombian foreign direct investment worldwide.  Im proving the situation is a challenge to which we 
must rise. 
106. As far as tourism is concerned, 2010 saw a 43 per cent increase over 2009 in Paraguayan 
tourists entering Colombia and a 23 per cent incr ease in Colombian tourists entering Paraguay.  
We trust that this trend will continue. 
107. To sum up, I should like to recall the words of  President Lugo when he announced that his 
country had achieved economic growth of 14.5 per cent in 2010:  "Today, Paraguay is the champion WT/TPR/M/245 
Page 20  
 
  of economic growth in the Americas and the world!".   Colombia feels that it is essential for Paraguay 
to develop a deeper relationship with the multilate ral trading system if such growth is to be 
maintained. 
CHILE 
 
108. At multilateral level, Chile, like Paraguay, has hi gh hopes of the WTO and, in particular, of 
the outcome of the Doha Round.  Chile and Para guay have convergent positions in many areas, 
notably agriculture, with both countries being members of the G-20 and Cairns Group. 
109. As noted in the respective Reports, our countries have signed several agreements at bilateral 
level that illustrate their intense and successful bila teral relationship spanning trade, investment, air 
and land transport, and services. 
110. Within the framework of the Administrative Commission of Economic Complementarity 
Agreement No. 35 entered into by Chile and ME RCOSUR, in May 2009 our two countries signed the 
53
rd Additional Protocol, establishing an Agreement on Trade in Services.  The process of approval of 
this Protocol by Chile is at an advanced stage. 
111. Reciprocal trade has grown significantly in recent years.  From 2006 to 2010, exports from 
Paraguay to Chile grew by 238 per cent, i.e. increased 3.5 times, from US$169 million in 2006 to 
US$598 million in 2010, which is the highest export value in the history of our bilateral trade.  
In turn, Chilean exports to Paraguay in the same  period grew 128 per cent, i.e. more than doubled, 
reaching US$550 million in 2010, in comparison with  US$241 million in 2006.  According to these 
figures, bilateral trade reached US$1.148 m illion in 2010 with a surplus for Paraguay of 
US$47 million.  Paraguay's main export products ar e bovine meat, pellets and maize, while Chile 
exports copper, beverages, medicines and lubricants. 
112. Direct investment between the two countries has increased.  Paraguayan direct investment in 
Chile of US$618 million, linked to trade and services, was recorded from 1994 to 2008.  In turn, Chilean direct investment in Paraguay in th e period 1994 to 2009 totalled US$121 million in 
15 projects mainly in the industry and services sectors. 
113. As far as this Trade Policy Review is concerned, Chile is pleased to note Paraguay's 
impressive achievements over the last few years.  A particularly successful year was 2010 when, according to the IMF, the Paraguayan economy grew 15.27  per cent, a figure far higher than that of all 
the other countries in the region and one of the highest in the world, exceeded only by Qatar. 
114. The progress made by Paraguay in facilitating tr ade transactions should be noted, for example 
the streamlining of customs procedures and setting-up  of single windows.  Nevertheless, we believe 
that there is still room for improvement.  The World Bank report Doing Business 2011  reveals 
setbacks in certain areas. 
115. The authorities of the country under review have recognized that the business environment 
can be improved to make Paraguay a more sought-after  destination for investors.  Of particular note 
amongst the measures currently being implemente d is the promulgation and implementation of 
regulations ensuring free competition among enterprises. 
INDIA 
 
116. It is heartening to note that Paraguay's economy enjoyed sustained growth during most of the 
period under review, chiefly driven by dynamic perfo rmance in agricultural production.  On 16 April, 
in a statement to the IMF on behalf of Argentin a, Bolivia, Chile, Paraguay, Peru and Uruguay,  WT/TPR/M/245 
 Page 21 
 
 
  Central Bank of Chile President José de Gregorio noted that "Paraguay's real GDP growth reached 
15.3 per cent in 2010, by far the best economic performance since records began in 1950 and one of the highest growth rates in the world.  The economy grew at a faster pace than originally envisaged 
thanks to an excellent agricultural production cycl e and strong exports that had a positive impact on 
aggregate demand, which is characterized by high levels of consumpt ion and investment.  
The projections for 2011 are promising since good weather conditions, rising commodity prices and 
improved productivity are expected to boos t agricultural output to record levels". 
117. The Secretariat Report has indicated many solid achievements of the Paraguayan trade 
regime.  Let me highlight a few of these.  Paraguay has continued to apply measures to facilitate trade, 
with the result that customs procedures have b een streamlined, mainly by setting up single windows 
for imports and exports.  Paraguay has maintained a solid record of notifications to the WTO over the 
review period, with only a few outstanding.  Paragua y has continued to adopt measures to streamline 
and modernize its trade regime.  These efforts have  led to the simplification of customs procedures 
and trade facilitation.  After setting up a Single Window for Exports in July 2010, Paraguay also 
introduced a Single Window for Imports, enabling electronic clearance of all overseas buying and 
selling operations. 
118. Another feather in Paraguay's cap has been that its trade grew rapidly over the period 
2004-2010, reaching 98 per cent of GDP, which reflects the high degree of openness of the country's economy.  However, this also underlines the implications for the vulnerability of the country's economy in the light of the recent WTO Report whic h has forecast a slowdown in global trade in 
2011.  It would be interesting to h ear from the delegation of Paraguay what steps it proposes to take to 
continue this upward trend in its trade pe rformance in the outlook forecast by the WTO. 
119. India and Paraguay enjoy friendly relations a nd these have continued to acquire greater 
economic content and interaction in recent times.  Paraguay has opened a resident embassy in Delhi 
and also appointed an Honorary C onsul in Chennai;  we consider  these to be positive developments 
which will help in further strengt hening our bilateral relations. 
120. The Framework Agreement between India and ME RCOSUR was signed in Asunción in 2003.  
Since then, India's relations with MERCOSUR and its  members have gained strength.  We consider 
that there is still tremendous potential to tap.  Indi a's exports to Paraguay si nce 2005 have more than 
tripled, reaching US$65 million.  On the other ha nd, Paraguay's exports to India during the same 
period have shot up by 18 times from just US$4 mi llion to US$72 million.  Thus, the overall trade 
balance is in favour of Paraguay.  India's exports  to Paraguay include chemicals, pharmaceuticals, 
tractors, two wheelers, LCVs and utility vehicles and textiles, while imports mainly comprise soya oil. 
JAPAN 
 
121. I would like to begin with Paraguay's econo mic policy and environment.  The GDP of 
Paraguay developed with an annual average of  5 per cent from 2004 to 2008.  Although it was 
affected by a severe drought and the global economic crisis in 2009, it recovere d in 2010 thanks to the 
implementation of expansionary fiscal and monetary policies and to the increase in the global prices 
of raw materials.  As a result, the GDP per capita  almost doubled during the review period.  At the 
same time, Paraguay recorded a fiscal surplus at the central level, even with a public spending 
increase in response to the global financial crisis, due  to its tax reforms to reduce its fiscal deficit.  
Japan welcomes these recent good macroeconomic performances and e xpects Paraguay to continue its 
sound and robust macroeconomic policies. 
122. 
With regard to its trade and investment polic ies, we have three comments.  Firstly, Japan 
highly appreciates the simplification of custom s procedures, including the newly introduced WT/TPR/M/245 
Page 22  
 
  Single Window for Imports (VUI).  Together with  the already operating Single Window for Exports 
(VUE), all major trade-related pr ocedures have been modernized. 
123. Secondly, in the area of notifications to the WTO, we commend the remarkable improvement 
made by the Government of Paraguay.  According to  the Secretariat Report, after the establishment of 
the National Information and Notification System , Paraguay notified all the proposed technical 
regulations which were deemed to affect trade.  As for the sanitary and phytosanitary measures, we 
have learned that efforts are being made to notify draft measures and to process comments and 
remarks.  Japan encourages Paraguay to continue  to implement measures ensuring transparency 
through timely and appropriate notifications to the WTO. 
124. Thirdly, with regard to the protection of intellectual property, Japan notes that the 
Government of Paraguay has implem ented policies towards the further establishment of IP legislation 
and has enhanced enforcement by , for example, introducing more stringent penalties against 
counterfeiting and setting up a Special Technical Un it under the Ministry of Industry and Trade.  
However, we understand that the distribution of pira ted products is still preval ent and this is a matter 
of serious concern.  Therefore, Japan encourag es Paraguay to continue its efforts towards more 
effective enforcement to protect intellectual property and would like to hear whether its recent efforts 
have brought any early results. 
EUROPEAN UNION 
 
125. The importance of EU trade relations with Paraguay was emphasized during the recent visit 
of the EU Trade Commissioner Karel De Gucht to Paraguay in February 2011.  Paraguay is also a 
member, and currently has the presidency, of MERCOS UR and, as such, is a constituent part of an 
important "region-to-region" trading partner fo r the EU.  The EU-MERCOSUR negotiations were 
relaunched in 2010 and the next round of the negotiations will ta ke place in Asunción next week. 
126. The EU is Paraguay's fourth most important tr ading partner (with a value of trade in 2010 of 
more than €757 million) after two of its MERCOSU R partners, namely Brazil and Argentina, and 
after the United States.  The main EU imports from Paraguay are agricultural products and raw 
materials (92 per cent).  The EU mainly exports manufactured products to Paraguay (85 per cent of 
total exports) and in particular machinery, trans port equipment and chemical s.  Paraguay is also 
attractive as a destination of EU FDI, also havi ng regard to the access to other MERCOSUR markets. 
127. Thanks to careful macroeconomic policies, Paraguay has weathered the global economic 
crisis better than many other countries.  The 20 10 growth, an impressive 15.3 per cent, was the 
highest in Latin America and the third best in the world.  Paraguay also stabilized its public finances 
thanks to fiscal reforms.  This growth is the result of dynamism in all the sectors of the economy, in particular record exports of soybeans and meat, plus  a high level of activity in the construction sector.  
However, poverty and inequality levels remain high and one of Paraguay's major challenges will be to 
ensure that the whole of society, especially th e poorest segments, benefits from economic growth. 
128. The EU shares the WTO Secretariat's findings  that Paraguay has an open trade and 
investment regime, and that it has continued to ad opt measures to streamline and modernize its trade 
regime.  I applaud Paraguay's continuing adherence to a liberal and rules-based trading regime.  
A recent highlight is the introduction by Paragua y of new simplified custom procedures and the 
setting up of single windows for exports and for impor ts, enabling electronic clearance of all overseas 
buying and selling operations.  Trade facilitation 'p ar excellence' is of major importance to the 
Paraguay economy and it will come as no surprise that the European Union is currently financing a 
project with the Ministry of Industry and Trade,  supporting in particular the single window for 
exports.  WT/TPR/M/245 
 Page 23 
 
 
  129. The EU also recognizes the fact that trade policy is a priority component in Paraguay's 
Economic and Social Strategic Plan (2008-2013), wh ich prioritizes the promotion and diversification 
of exports.  The EU also welcomes that trade policy has been linked with social development policies.  
The importance of linking trade with sustaina ble domestic policies, and in particular 
employment-related policies and core labour standards, is of major significance for promoting 
inclusive and sustained growth. 
130. Regarding the main institutional developmen ts, we welcome the establishment of the 
investment and export promotion agency "REDIE X", the creation of the body responsible for 
ensuring compliance with TBT notification comm itments, and the establishment of the National 
Information and Notification System, SNIN.  Again, this was made possible by a project financed by 
the European Union. 
131. As regards the areas wh ere there is room for improvement,  there is the fight against illegal 
trade in pirated goods in the tri-border area between  Paraguay, Argentina and Brazil and the respect of 
intellectual property rights in general.  While the EU acknowledges certain progress in Paraguay in 
terms of creating new legislation and of fighting against piracy and counterfeiting, we still have 
concerns as regards border control and deficienci es in the implementation and the enforcement of 
certain intellectual property rights.  In particular, the issue of the absence of patent grants, especially 
for pharmaceuticals, remains to be solved.  For several years and due to the lack of relevant 
legislation, no patents have been granted in th e country and 800 applications are still pending.  
Protection of confidential test data is also a matter of concern, as well as the absence of specific 
legislation on Geographical Indications.  The rece nt creation of a Geographical Indications Section 
within the IPR Directorate-General should be suppor ted with the corresponding legislation.  The EU 
stands ready to further cooperate with Paraguay in dealing with these issues. 
132. The Secretariat Report also states that th e services sector accounts for 51 per cent of 
Paraguay's GDP.  The EU regrets that Paraguay has ma de virtually no efforts to liberalize its services 
sector and would therefore like to stress the efficien cy gains that come out of liberalization in areas 
such as transportation, financial services as well as telecommunications. 
133. The EU recognizes that Paraguay has made c onsiderable progress in the regulatory and 
institutional aspects of government procurement and that it has improved the procedures for purchasing and for dispute settlement.  However, ther e is a need for further improvement in market 
openness and transparency to facilitate international competitive bidding.  The EU is pleased to note a 
number of steps Paraguay has taken since the second Review.  The overall objective remains to 
facilitate trade, increase investments and strengthen administrative capacity. 
ECUADOR 
 
134. In spite of the downturn recorded in 2009, th e Paraguayan economy has seen a growth rate of 
around 5 per cent in recent years.  This strong growth  can be attributed to the consolidation of public 
finances, an appropriate monetary policy stance and high global raw material prices.  Nevertheless, as 
is the case for other countries in the region, pov erty and inequality are ongoing challenges for 
Paraguay and greater efforts are required to tackle these issues. 
135. We have noted with interest that the deve lopment objectives of the present Government - 
which attach particular importance to internationa l trade - are set out in the Economic and Social 
Strategic Plan (2008-2013), which in turn is comp lemented by the proposals contained in the Social 
Development Policies (PSD 2020), the strategic ob jective of which is to promote and develop 
conditions permitting inclusive, su stained growth.  Ecuador shares the view of the Paraguayan 
Government as regards the importance of planning and wishes to undersco re its relevance as a tool for 
achieving development objectives. WT/TPR/M/245 
Page 24  
 
  136. With regard to Paraguay's trade regime, the implementation of trade facilitation and 
institutional capacity-building measures is worthy of special mention.  Paraguay's international trade, 
which represents 98 per cent of GDP according to the Secretariat Report, is one of the driving forces 
of the economy.  However, exports comprise main ly agricultural products and are destined for a 
limited number of markets, which makes the ec onomy more vulnerable to fluctuations in the 
international markets and forces our countries to cons tantly strive to diversify our export destinations 
and exportable supply and to increase the share of manufactured goods. 
137. Relations between Ecuador and Paraguay are fri endly and cooperative in many areas.  With 
regard to trade, it is still in its early stages as fa r as goods and services are concerned.  One reason for 
this is the lack of logistics chains to facilitate trade flows and limited awareness on both sides of the 
potential of our respective markets.  It was preci sely on the occasion of President Lugo's recent visit 
to Ecuador that the need to in crease trade between the two countri es was discussed.  To this end, 
various measures were analysed, including the deve lopment of existing regional integration systems 
and the commitment to set up the Ecuadorian-Pa raguayan Bi-national Chamber of Commerce.  
We trust that these measures will lead to a strengthening of trade relations in the short term. 
ARGENTINA 
 
138. Paraguay is a traditional and strategic trading partner of Argentina.  There has been an 
ongoing consolidation of trade relations between ou r countries, in particular since the creation of 
MERCOSUR in 1991.  MERCOSUR is the destination of 48.4 per cent of Paraguayan exports.  As a 
full member of this trade block, Paraguay has contributed to the strengthening of the MERCOSUR 
integration process in all our areas of action - not only economic and commercial, but also political.  
Currently, and as a result of this process, many Argentine enterprises are investing in Paraguay, 
thereby expanding our trade relations.  At the same time, Paraguayan enterprises are seeking to invest 
in neighbouring markets. 
139. Paraguay is also an active member of the LAIA , the headquarters of which are in Montevideo, 
and has signed a series of partial scope agreem ents with all LAIA members, as well as Economic 
Complementarity Agreements (ECAs). 
140. In 2010, Paraguay's GDP increased by 14.5 per cent, one of the highest economic growth 
rates in the world.  This is largely explained by the 47 per cent growth in agriculture, the country's main export sector. 
141. In this connection, worthy of special mention is the extraordinary increase in meat and grain 
exports, which have benefited fro m the major recent developments in Paraguay's phytosanitary, 
genetic and sanitary control systems.  We should al so like to draw attention to the efforts of the 
Paraguayan authorities to secure the status of f oot-and-mouth disease-free country where vaccination 
is practised, as well as to the cooperation and tech nical assistance work undertaken in this field at 
regional level. 
142. The remarkable way in which Paraguay has deve loped and stimulated the agricultural sector 
is proof of the importance of the international ag ricultural markets to developing countries with a 
competitive agricultural production sector. 
143. As the Secretariat Report points out, since its last Review, Paraguay has continued to take 
measures to streamline and modernize its trade regi me.  Chapter III of the Report, which provides a 
detailed description of Paraguay's trade policy, stat es that Paraguay has an open trade policy, with 
high shares for imports and exports in the composition of its GDP.  WT/TPR/M/245 
 Page 25 
 
 
  144. Proof of the trade facilitation efforts of the Paraguayan authorities lies in the creation of a 
Single Window for Exports in July 2010 and the launch of a Single Window for Imports. 
145. With regard to economic policy, Argentina wishes to point out the emphasis placed by the 
Paraguayan Government on formalizing the vari ous sectors of its economy, encouraging the 
development of different productive sector s and improving income distribution. 
146. In view of the foregoing, Argentina hereby c onveys its best wishes to Paraguay and hopes 
that it will continue to transform its economy and that, in the context of MERCOSUR, trade conditions continue to be equally  conducive to greater internati onal integration for the Paraguayan 
economy. 
147. At the multilateral level and in particular in  the context of the Doha Round negotiations, 
Argentina and Paraguay share common aspirations , notably with regard to the agricultural 
negotiations where we are working towards reforming agricultural trade, with a view to achieving a 
reduction in subsidies and freer and more transparent market access. 
BARBADOS 
 148. We congratulate Paraguay on its important achievements since it s last review, which have 
generally reflected a steady trade and economic performance, particularly notable against the 
backdrop of the recent global crisis and recession.   We acknowledge the rapid and able manner in 
which the Paraguayan authorities addressed the impact s of the crisis, largely as a result of sound 
macroeconomic policies, fa vourable external financing conditions  and robust export revenue earnings.  
We note that strong economic growth was recorded th roughout most of the review period, with a high 
point in 2010, resulted in a doubling of per capita GDP within this time-frame. 
149. This success has been underp inned by a number of reforms including economic reform 
programmes geared towards infrastructural developm ent and fiscal reform, the latter contributing to 
six years of fiscal surplus between 2004 and 2009.  Although it has been suggested that the growth rate is expected to slow down slightly in 2011, positive indicators are nevertheless suggested for the 
short to medium term. 
150. The importance of foreign trade to Paraguay may be underscored in its GDP-to-trade ratio, 
which over the period 2004-2010 reached 98 per cen t of GDP.  The reports before us and the 
Vice-Minister's statement this morning also conf irm the significance of MERCOSUR and the role of 
regional trade as an important platform in Paragua y's trade policy.  MERCOSUR's - and by extension 
Paraguay's - participation in a number of regiona l and extra-regional agre ements should facilitate, 
especially in the latter case, the diversification of trading partners. 
151. Within the review period, other noteworthy trad e measures include steps taken to streamline 
customs procedures, develop the legal and policy fra mework for government procurement, as well as 
enhance the notification of technical regulations.  Efforts regarding the enforcement of intellectual 
property rights are ongoing and have been recognized by the Government  as an area in need of further 
strengthening. 
152. In spite of its accomplishments, Paraguay still faces a number of economic and social 
challenges, which highlight its complexity as a la ndlocked country and small, vulnerable economy.  
Like Paraguay, Barbados considers that target ed and sustained assistance through international 
cooperation mechanisms like Aid for Trade can provi de greater opportunities for countries like ours to 
participate in the international trading system. WT/TPR/M/245 
Page 26  
 
  153. We appreciate the active role that Ambassador González and his team in Geneva play in the 
Doha Round negotiations.  For our delegations, the importance of fulfilling the development 
dimension of the Doha Round re mains fundamental, and we look forward to continuing our 
collaboration with Paraguay to secure this objective. 
MOROCCO 
 
154. It is a great pleasure for Morocco to participat e today in the third Review of Paraguay's trade 
policies and practices, during which WTO Member countries will have the opportunity to find out 
about the progress made by this country at the institutional, economic, financial and commercial 
levels. 
155. Several years ago, Paraguay introduced a series of bold and ongoing reforms to reflect the 
trend in international trade relations, to adapt itsel f to new requirements and to meet the challenges of 
modernity.  The data on the country's economy show  that the prospects are reassuring despite the 
current turbulence of the global ec onomic environment.  The GDP and inflation growth rates recorded 
in 2010 are testimony to its vitality and adaptability. 
156. The expansion of the Paraguayan economy is also the fruit of targeted reforms in the areas of 
FDI, the business climate and monetary, budgetary and fiscal policies, together with the identification 
of centres of growth to ensu re its economic development. 
157. Along the same lines, these advances serve as  an effective and ambitious means of 
establishing the mechanisms for an economy that  is modern, open and competitive.  Morocco 
welcomes the measures taken by the Paraguayan Gove rnment to make the institutional and regulatory 
environment more favourable to trade development. 
158. My delegation wishes to congratulate Paraguay on the considerable efforts it has made since 
its last Trade Policy Review to pursue its economic  liberalization policy, introducing macro-economic 
reforms and stepping up the market opening process, simplifying foreign trade procedures, creating an enabling environment for investment development, and diversifying its trade and economic relations 
through free-trade agreements  with its main partners. 
159. Morocco attaches great importance to South-So uth cooperation to enhance the exchange of 
experience and expertise and is confident that Pa raguay is capable of overcoming the challenges it 
faces.  From this standpoint, the first meeting of  the joint Morocco-Paraguay Commission, held in 
Rabat in 2009, was an opportunity to improve bilateral cooperation relations between the 
two countries, at all levels and in all areas.  In  the context of the Commission, both countries have 
shown willingness to work together to enhance political dialogue and strengthen cooperation in 
different fields, in particular agriculture, wate r and electricity, health, human development and 
poverty alleviation.  This meeting also marked the beginning of a new phase in economic relations 
between the two countries, characterized by the ex change of visits by economic operators, and the 
outlook is promising as regards future interaction between both countries. 
160. Convinced that progress in modernizing the ec onomy can only be achieved by opening up to 
the outside world, Paraguay has chosen to diversify it s trading partners by participating in a number of 
regional trade agreements.  We hereby call on the WT O and its partners to provide Paraguay with the 
appropriate technical assistance, as stipulated in  the WTO's existing instruments, to enable it to 
become integrated into, and benefit fro m, the international trading system. 
161. In its efforts to modernize its structures and its economic and financia l institutions, Paraguay 
now needs substantial technical assistance in th e sectors covered by the WTO and its various  WT/TPR/M/245 
 Page 27 
 
 
  Agreements.  Within this framework , there is a need for the means th at will allow it to make the most 
of the satisfactory performance of the past few years to be mobilized. 
162. Likewise, as a Member with an interest in th e affairs of the WTO, Paraguay should receive 
assistance from the WTO to enable it to pursue its po licy of reform and modernization in order to 
participate in a beneficial and constructive way in  multilateral trade.  My delegation hereby invites 
development partners to remain by Paraguay's side  throughout its courageous and noble struggle for 
economic growth and development.  Allow me to  congratulate the Paraguayan Government on its 
record of achievement in recent years as we ll as its fierce commitment to multilateral trade 
integration. 
NIGERIA 
 163. Nigeria is pleased to note that Paraguay has a very open trade and investment regime, as 
underscored by the continued application of measur es facilitating trade, wh ich has resulted in the 
simplification of customs procedures and the settin g up of single windows for imports and exports.  
Paraguay has also made efforts to build its instituti onal capacity for foreign trade, as exemplified by 
the establishment of a single window responsible fo r ensuring compliance with commitments to notify 
technical regulations.  Paraguay has also made effo rts to adopt measures to improve the enforcement 
of intellectual property, including a reform of its Penal Code.  These measur es have ensured electronic 
clearance of all overseas buying and selling operations, equal treatment of foreign and local investors, 
and Paraguay's participation in sever al international arbitration mechanisms for dispute settlement in 
the area of investment-related issues. 
164. Paraguay has met its obligations in the WTO by  submitting several notifications that have 
given Members the opportunity to familiarize them selves with its trade regime.  As a developing 
country, Paraguay has participated as a third party in  the WTO dispute settlement  mechanism.  This is 
a welcome development given the central role played by the dispute settlement system in 
guaranteeing security and predictability in the multilateral trading system.  We therefore believe that 
developing countries' participation in the system would promote and safeguard their interests and 
legitimate expectations in the multilateral trading system. 
165. Being a landlocked country, Paraguay faces some of the highest transport costs in 
Latin America, which adversely affects the compe titiveness of its exports, principally those of the 
agricultural sector, and makes its exports more expensive.  We welcome the recognition by the 
Government of Paraguay of the need to solve the problem in order to improve the competitiveness of 
the economy and promote its integration into the international markets. 
166. As an important WTO Member, Paraguay has played an important role in the DDA 
negotiations and has co-sponsored in several nego tiating areas.  My delegation looks forward to 
further collaboration with Pa raguay in the negotiations. 
PARAGUAY 
 
167. I should like to give thanks to the Chair for preparing and running the meeting, to the 
discussant for his support, and also to all the dele gations.  Many of the comments we have heard 
acknowledge the efforts being made  by the Paraguayan Government, of ten in difficult contexts and 
adverse situations, to ensure our country keeps forg ing ahead.  We have also taken due note of all the 
challenges that the international community present at  this meeting feels lie ahead for our country;  
Paraguay will tackle these challeng es conscientiously and resolutely. WT/TPR/M/245 
Page 28  
 
  V. REPLIES BY THE REPRESENTATIVE OF PARAGUAY AND ADDITIONAL 
COMMENTS 
168. As stated on Wednesday, Paraguay considers that the exercise of periodically reviewing 
countries' trade policy performance and developments  helps to enhance the transparency of the 
multilateral system.  In this connection, we welc omed Members' comments on this third Trade Policy 
Review of Paraguay and have replied in  writing to the questions we received. 
169. With regard to the issues that arose on the first day of the meeting, we wish to provide more 
in-depth explanations in relation to the main points made by Members.  As far as our economic 
environment is concerned, we should like to th ank Members for their positive comments concerning 
our economic growth and trade policy regime and for their acknowledgment of Paraguay's endeavours 
to maintain open trade and to employ fiscal and m onetary policy instruments rather than introducing 
restrictive measures to overcome the global crisis of 2009. 
170. In this context, we wish to draw particular  attention to a few significant facts related to 
Paraguay's economic policy management.  Firstly, ec onomic growth in 2010 was 15.3 per cent, one of 
the highest rates in the history of our economy.  The most significant aspect of this growth is that it 
occurred in a context of fiscal and monetary stability.   Inflation in 2010 was thus 7.2 per cent, a figure 
well below the historical average of 9 per cent.  Furthermore, the budget surplus stood at 1.4 per cent. 
171. Secondly, we trust that results will once agai n be positive in 2011 given that forecasts by the 
Government and international organizations agree th at economic growth should be around at least 
6 per cent, with inflation once again below the historic level, at approximately 7.5 per cent. 
172. Attention has been drawn to a number of i ssues related to Paraguay's trade policies and 
practices and we welcome your appreciation of the progress we have made in terms of trade 
facilitation, in particular the streamlining of form alities, the implementation of single windows for 
imports and exports and the crea tion of a National Information and Notification System (SNIN). 
173. Turning now to the various issues related to the respect of intellectual property, our 
Government is undertaking targeted actions to ensure  full respect of intellectual property rights.  The 
first of these involves the strengthening of the ins titutional regulatory framework for patents, in the 
context of which a new regulation is being drawn up in conjunction with the different stakeholders 
that we trust will have very positive im pact on our fight against counterfeiting. 
174. With regard to geographical indications, a piece of draft legislation aimed at regulating the 
relevant aspects of the Trademark Law is currently under consideration.  As far as the enforcement of 
intellectual property rights is concerned, we wish to highlight our efforts to ensure adequate protection 
of these rights, which have translat ed into the following measures:  (i ) at the institutional level, the 
Special Technical Unit (UTE) was strengthened a nd intelligence agencies were set up to support the 
fight against intellectual property crime;  (ii) the State Attorney-General's Office set up a specialized 
unit to deal with intellectual property offences;  ( iii) we also managed to amend domestic legislation 
to incorporate more severe penalties for infringement of intellectual property rights;  and (iv) with a 
view to raising public awareness, a compulsory course on intellectual property law has been included 
in the curricula of all Paraguay's law schools. 
175. These efforts, which represent significant steps forward in the development and 
implementation of tools to combat the scourge of counterfeiting, allow us to hope that we will be 
achieving very satisfactory results in Paraguay in the short term.  WT/TPR/M/245 
 Page 29 
 
 
  176. Furthermore, we have received a number of comments from Members concerning the 
incentive programmes implemented in Paraguay.  In this regard, we wish to report that we have 
conducted studies at domestic level which lead to the conclusion that these instruments are of limited 
use;  the fiscal revenue foregone that they involve  represents only 0.2 per cent of GDP and they have 
no distortive effects on domestic competitiveness or trade. 
177. In relation to the concerns that have arisen ove r the new draft industrial policy law, we wish 
to clarify that the document in question, as menti oned in the Secretariat Report, is a study currently 
being examined by Paraguay's Economic Cabinet and which does not therefore form part of existing 
Paraguayan legislation on incentives. 
178. We have no doubt as to the importance of issui ng a law to protect competition and it remains 
our firm intention to promulgate such a law in the very near future.  In th e meantime, we are working 
internally to raise awareness among business sectors and the general public, as well as promoting training programmes for government sector specialists. 
179. As far as services are concerned, we wish to point out that our country recognizes the 
significance of this sector in the national economic structure.  In this connection, Paraguay is 
examining the possibility of expanding its sch edule of specific commitments, taking into 
consideration the principle of respect for deve lopment, public policy and regulatory sovereignty 
objectives. 
180. With a view to enhancing the business clim ate, Paraguay has endeavoured to foster a 
transparent government procurement process by stre ngthening the institutional framework through the 
creation of a decentralized body with autonomous  decision-making capacity and extensive access to 
state-of-the-art technological tools.  This has r esulted in greater security, clarity and efficiency. 
181. With regard to Aid for Trade, Paraguay supports  this initiative and all the work undertaken in 
this area.  Furthermore, we cons ider market opening to be crucia l to our countries' development and 
economic growth. 
182. On behalf of Paraguay, we shoul d like to give special thanks to the Chair of this Body, and 
also to extend our thanks to the discussant, to all the delegations present for their interest in the Trade 
Policy Review of Paraguay, and to the WTO Secretariat for its work. 
183. Finally, Paraguay is of the opinion that tr ade is a tool for human development, poverty 
alleviation and greater equality of opportunities for people the world over.  We therefore wish to reaffirm our commitment to continuing to wo rk constructively and in compliance with the 
WTO Agreements with a view to a successful conclusion to the Doha Development Round. 
DISCUSSANT 
 
184. This Review has proved extremely interesting and made us aware of the great strides forward 
taken by the Paraguayan economy during the period unde r review, as well as the challenges it faces to 
enhance its competitiveness and improve the living conditions of its people.  Paraguay's sustained 
growth during the great crisis of 2009 is most impressive and the fact  that it has managed to double its 
per capita income, both in US dollars and in te rms of purchasing power, is something that few 
countries have been able to do in such a short period  of time.  I should also like to reiterate the point 
made by Vice-Minister Cáceres, namely, Members' great satisfaction that Paraguay has not adopted protectionist policies to deal with the crisis.  I al so wish to highlight the trade facilitation measures 
that Paraguay has taken, mainly through the crea tion of single windows for both imports and exports.  
I believe that we have all applauded the measur es implemented to foster transparency in the WT/TPR/M/245 
Page 30  
 
  development and notification of technical regulati ons and standards, although mention was also made 
of the further efforts required as regards mutual recognition. 
185. Certain Members have asked Paraguay to ensure  compliance with international sanitary and 
phytosanitary standards.  With regard to govern ment procurement, although Paraguay has made great 
efforts to reform and modernize its policies, th ey are essentially biased towards domestic production 
and domestic producers, which can be very costly  not only in monetary terms, but also, and 
especially, in terms of the distribution of production factors. 
186. The future holds major challenges in store for the Paraguayan economy and major efforts 
need to be made to improve the living conditions of its citizens.  Firstly, measures permitting a more 
equitable distribution of income and further re duction of poverty are required.  Secondly, both 
Paraguay's export products and the markets for those products need to be diversified.  Bridging the 
current gap between bound tariffs and applied tariffs would be extremel y important in this connection 
since it would confer transparency and predictability upon Paraguay's trade policy.  Similarly, in spite 
of Paraguay's great efforts to maintain an open economy and its major successes as regards 
liberalizing trade, concerns were voiced over certain  restrictions, basically related to non-automatic 
import licensing, customs procedures and the mandatory use of customs officials.  I believe that many 
Latin American countries have recourse to customs o fficials, but in Paraguay they are required for 
very low import amounts, which results in unnecessary co sts, particularly in a country that needs to 
make its international trade more efficient. 
187. Services is obviously the most important sector of the Paraguayan economy and it is therefore 
very important to pursue the liberalization that has already been undertaken.  In particular, a reduction 
of transport costs is crucial, given that it is clear that, for a landlocked country like Paraguay, this is a 
great burden which requires action to be taken accord ingly.  There can be no doubt that one of the 
most heavily emphasized points during the Review was the need for the National Congress to approve 
the law on competition.  Finally, it is important to strengthen the enforcement of intellectual property 
rights.  All of these measures will undoubtedly be  conducive to the increased competitiveness and 
productivity of the Paraguayan economy. 
UNITED STATES OF AMERICA 
 
188. The United States offers four additional follo w-up questions and we will provide a written 
copy following the meeting.  First, on page 59, th e Secretariat Report states that a voluntary standard 
may be made into a technical regul ation.  Paraguay has explained that the SNIN has a process in place 
for WTO notification.  Could Paraguay please clarif y that this process is followed in the case of a 
voluntary standard being made mandatory through the issuance of a draft technical regulation? 
189. The second question refers to page 61.  We w ould like to thank Paraguay for the information 
regarding the new draft mechanism, and we wo uld like to enquire when Paraguay expects to 
implement this new mechanism.  We would appreciat e it if Paraguay could outline what notification 
improvements will come from this new mechanism.  We  would also be interested in learning more 
information about the role of MERCOSUR. 
190. The third question refers to page 96 of the S ecretariat Report.  The United States understands 
and appreciates that Paraguay has committed to setti ng up a national inter-institutional commission to 
deal with intellectual property issues "as soon as possible".  Please clarify whether Paraguay anticipates that the establishment of this entity will take place in 2011 or at some later date.  Given 
that this bill ( anteproyecto ) is still undergoing inter-ministerial review, what is the likely process and 
timetable for legislative consideration?  WT/TPR/M/245 
 Page 31 
 
 
  191. The fourth question refers to pages 97 and 98 with  respect to intellectual property rights.  The 
United States understands and appreciates that Paragu ay does not currently have available statistics 
that would provide data to detail and support the efforts the authorities have taken to improve IPR 
enforcement.  Given this lack of specific data, could Paraguay please provide some anecdotal examples that illustrate that such efforts have b een taken, including examples regarding how Paraguay 
is combating cybercrimes? WT/TPR/M/245 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
192. This third Trade Policy Review of Paraguay has provided an opportunity for us to improve 
our understanding of recent developments in its trad e and trade-related policies, and the areas where 
there is room for improvement.  We are thankf ul for the active participation of the Paraguayan 
delegation, headed by Ambassador Manuel María C áceres, Vice-Minister of Economic Relations and 
Integration at the Ministry of Foreign Affairs;  our thanks also extend to Ambassador Federico 
González, Permanent Representative of Paraguay in  Geneva, and to the rest of the Paraguayan 
delegation.  Our discussions have also benefite d from the insightful remarks of our discussant, 
Ambassador Fernando de Mateo, a nd many interventions by Members.  The answers provided by the 
Paraguayan authorities to the questions submitte d in advance were very much appreciated. 
193. Members congratulated Paraguay for the solid  economic performance achieved during most 
of the period under review, which had allowed GDP per capita to double over that period.  Members 
commended Paraguay for having successfully emer ged from the global economic crisis, while 
refraining from adopting trade protectionist measur es.  They noted that Paraguay's appropriate 
implementation of fiscal and monetary policies, as well as strong global demand for commodities, had 
enabled the Paraguayan economy to stage an impr essive recovery in 2010, with GDP growth 
exceeding 15 per cent. 
194. Members acknowledged the openness of Paragua y's trade regime, as evidenced by a 
trade-to-GDP ratio of nearly 100 per cent.  They also noted the central role of trade in Paraguay's 
development strategy.  However, concerns were expressed about reliance on a few export markets and 
products, and therefore Members urged Paraguay to st ep up efforts to diversify its export basket and 
markets in order to minimize exposure to external shocks. 
195. Members commended Paraguay for its relatively low average MFN tariff and its overall scant 
use of non-tariff measures, although some concerns we re raised with respect to the use of import fees 
and registration and licensing requirements.  Me mbers also recognized the efforts undertaken by 
Paraguay to streamline its business environment and facilitate trade, including the creation of single 
windows for imports and exports, as well as actions taken to enhance transparency and compliance 
with WTO notification obligations, such as in the area of technical regulations.  While there was a 
positive assessment of the legal and institutional refo rms undertaken by Paraguay to support trade and 
investment, several areas for further improvement  were highlighted, particularly relating to 
intellectual property rights protection, governme nt procurement, competition policy and market 
access in services. 
196. Paraguay's active participation in the WT O, including in the DDA negotiations, was 
recognized.  At the same time, it was acknowledged that Paraguay's trade policy was conducted in the 
general framework of MERCOSUR.  In this regard, some concerns were raised at the prospect of 
Paraguay increasing applied ta riffs in order to fully implement MERCOSUR rates. 
197. From a careful analysis of the discussions he ld and the points raised by delegations during 
this Review, there seems to be ground for reco mmending that the Paraguayan authorities consider 
introducing further improvements in the following areas: 
 Tariffs .  While recognizing the relatively low level of the average MFN tariff, 
Members encouraged Paraguay to reduce the gap between bound and applied rates. 
 Non-tariff measures .  Some Members noted that Paraguay had recently introduced 
prior registration and licensing requirements for certain products, and exhorted Paraguay to relax them.  They also urged Paraguay to consider eliminating consular 
fees and the requirement to use customs brokers.  WT/TPR/M/245 
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   Intellectual property .  Noting the actions undertaken to strengthen the enforcement 
of intellectual property rights, including th rough reform of the penal code, Members 
urged Paraguay to continue stepping up e fforts in this area, which remains of 
particular concern.  Members urged Paraguay to pass legislation to implement the regulations of the patent law, in particul ar in light of the large number of patent 
applications pending, especially for pharmace uticals.  Paraguay was also invited to 
speed up the adoption of legislation concerning geographical indications. 
 Government procurement .  While recognizing the progress made in the regulatory 
and institutional aspects of government proc urement, Members noted that there was 
scope for further improvement in openness and transparency.  Some Members expressed concern over Paraguay's use of preferences for national products and urged it to reassess the costs of these measures to its  economy.  Paraguay was also invited to 
consider joining the WTO Plurilateral Agreement on Government Procurement. 
 Incentive schemes .  Members noted that Paraguay implements a number of incentive 
schemes to attract investment and prom ote exports.  Some queried whether a 
cost-benefit analysis had been undertaken to assess the effects of su ch schemes, 
others urged Paraguay to re -examine them, and some recommended notifying them to 
the WTO. 
 Competition policy .  Paraguay was also encouraged to accelerate the process of 
adoption of competition policy legislation to f ill the regulatory gap in this area so as 
to improve business predictability and attract FDI. 
 SPS.  A number of Members noted that Paraguay was in the process of putting in 
place a notification mechanism for SPS measur es, and invited it to implement it as 
soon as possible, as had already been done in the TBT area. 
 Services .  Noting the relative importance of services to the Paraguayan economy and 
the limited GATS commitments undertaken by Paraguay, Members suggested that 
Paraguay would benefit from further services liberalization, including in areas such as 
telecommunications and river transportation;  with respect to the latter, market access could be enhanced, including through par ticipation in interna tional conventions.  
Paraguay was also urged to bind any such reforms in the WTO. 
198. This successfully concludes our third Review of Paraguay.  The detailed nature of the 
questions submitted and the insightful interventions  witness the interest of Members in Paraguay's 
trade policies and practices.  I would once again like to thank the delegation of Paraguay, the 
discussant and Members for contributing to wh at has been a very enlightening Review. 
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