Paraguay’s maquila sector reported exports totalled US$478 million as of May 2025. It marks a 12% increase (equating to US$52 million more) over the same period last year. 2024 Was already a record-breaking year for the maquila industry. In May 2025 alone, exports contributed US$90 million to the year’s total.
Exports substantially surpass imports within the maquila regime. By the end of May, imports stood at US$288 million, leading to a positive trade balance of 66%. This difference underscores the significant value added domestically in Paraguay prior to export.
A maquila is a manufacturing operation where companies import materials duty-free, assemble products using local labour, and export the finished goods. Located in free trade zones, it leverages tax incentives and low labour costs to boost economic growth and add domestic value before export.
Main maquila exports products and destinations
The sector’s main export products are auto parts (accounting for 34%), clothing and textiles (at18 %), and aluminium and related products (15%). These three categories drive the bulk of maquila exports. Other sectors, including food and plastic products contribute to a diversified and competitive regime.
An impressive 81% of Paraguay’s maquila exports are destined for Mercosur nations such as Brazil, absorbing 64% of exports; and Argentina following with 15%. Other notable recipients include the United States, the Netherlands, Chile, Bolivia and Uruguay.
In Paraguay, the maquila sector remains geographically concentrated: 91% of approved companies are based in the departments of Alto Paraná, Central, Capital, and Amambay, according to the Ministry of Industry and Commerce (MIC).
Employment surge
By May 2025, the sector had generated 33,285 jobs, reflecting a strong 27% rise compared with 2024. In May alone, 576 new roles were created. Notably, 73% of employment is concentrated in automotive parts, apparel, intangible services, pharmaceuticals and plastics: moreover, 45% of all maquila jobs are held by women, underlining the regime’s inclusivity. In January 2025, maquila companies created more than 30,000+ jobs.
Paraguay’s maquila scheme continues to demonstrate resilience as a cornerstone of industrial export strategy. With expanding employment, strong trade surpluses and sectoral diversity, the regime consolidates its status as a reliable engine of economic growth.
