Paraguay is preparing to strengthen its trade relations with the United Kingdom, potentially reaching an annual export volume of up to $900 million in total Paraguay-UK trade, in key products such as soy derivatives, beef, rice, and others.
This ambitious forecast was revealed in the report “Opportunities UK – Paraguay”, released this month by the Export and Investment Network (Rediex) during an event organised with the Paraguayan-British Chamber of Commerce.
According to data published in an Infonegocios news article, trade between the two countries is uneven. Paraguay exports products worth $51 million annually to the UK. In comparison, it imports $141 million, leaving a trade balance favorable to the European country.
Between 2021 and 2023, Paraguay’s main exports were soybean cakes, representing 76.8% of the total. This was followed by charcoal (8.2%), veneer (4%), rice (3.4%), and other products such as sesame, chia, and frozen beef.
On the other hand, Paraguay mainly imports alcoholic beverages from the UK (40% of imports), automobiles, phones, physiological serums, and vaccines, among other products.
Federico Silva, director of the Paraguayan-British Chamber of Commerce, highlighted the growth potential for Paraguayan exports to the UK, noting that fresh or chilled beef, rice, and soybean oil have significant opportunities to set new export records.
Silva also emphasised expectations that exports of products like charcoal, frozen meat, sesame, chia, and veneer will continue to rise, driven by the strengthening of bilateral relations.
Regarding investments, the UK ranks as the ninth largest investor in Paraguay, with $257 million invested by 2022 in key sectors such as trade, finance, agriculture, and transport. Silva highlighted the reopening of the UK Embassy in Paraguay as a key point for revitalizing the trade relationship between the two countries, opening the door to more significant investment opportunities.
A notable example is the Atome PLC project, which plans to invest approximately $500 million in constructing a green fertilizer plant in Villeta, with a nominal capacity of 145 MW.
“Paraguay is a land of opportunities with much to offer. Important factors such as its macroeconomic stability, geographical location, tax incentives, and others can facilitate the establishment of UK companies intending to invest in Paraguay,” concluded Silva.
