The “Maquila” system was introduced to the Paraguayan economy in 2000, based on the similar system in place in Mexico, as a way to attract manufacturing industries to Paraguay. It’s key offer to multinational businesses was a tax rate of just 1% via Maquila companies.
As of March this year, a total of 25,389 Paraguayans are now employed by maquiladora industries in Paraguay, playing an important role in the consolidation of the Paraguayan labor sector. According to the latest report from the Vice Ministry of Industry and the National Council of Export Maquila Industries (CNIME), 44% of these jobs are held by women.
72% of the jobs linked to maquiladoras are in the automotive parts and textiles sectors, each employing more than 6,000 workers. Meanwhile, the intangible services segment has 2,177 workers, followed by plastics and manufacturing with a total of 2,036 workers.
According to data, in the third month of 2024, maquiladoras achieved exports totaling USD 86.2 million, which represents an increase compared to February.
Main export sectors
76% of the products exported by maquiladoras in the first three months of the year are concentrated in five sectors, with automotive parts accounting for 28%, followed by textiles and clothing with 19%, food products with 15%, aluminum and its manufactures with 14%, and plastics and their manufactures with 7%.
Mercosur countries remain the main recipients of maquiladora exports, with 73% of these products exported within this economic bloc. Brazil stands out with a 60% share, followed by Argentina with 13%.
Other notable recipients include the United States at 5%, Chile at 3%, and the Philippines and Singapore each at 3%.
The data indicates that currently, a total of 292 companies are registered as maquiladora enterprises. Of these, 92% are concentrated in four specific areas of the country, with Alto Paraná having the highest number of companies, followed by Central, Capital, and Amambay.
