Paraguay

Business Opportunities in Paraguay for UK Exporters
1. Introduction & Snapshot

Paraguay, population 7 million, is a landlocked South American economy with opportunities in agriculture, energy, infrastructure, and manufacturing. UK exporters can access markets in agribusiness, renewable energy, industrial equipment, and professional services, particularly as Paraguay modernises its infrastructure and energy sectors.

2. Economic Overview

GDP (2023): ~USD 40 billion
Growth: 4–5%

Key sectors:

Agriculture: soy, beef, maize, cotton

Energy: hydroelectric (major exporter to Brazil and Argentina)

Manufacturing: food processing, machinery

Infrastructure: roads, bridges, urban development

3. Trade Relations with the UK

UK exports: machinery, vehicles, pharmaceuticals, IT, professional services

UK imports: soy, beef, maize, timber

Bilateral trade modest but opportunities exist in high-value goods and services

4. Market Opportunities

Agriculture & Agritech: Irrigation, sustainable farming, post-harvest technology

Renewable Energy: Hydropower consultancy, solar, biomass

Infrastructure & Construction: Roads, bridges, urban planning, machinery

Manufacturing & Industrial Support: Machinery, logistics, quality control

Professional Services: Consultancy, financial, engineering, legal

5. Regulatory & Business Environment

Transparent regulatory framework with incentives for investment

IP protection generally reliable

Local partnerships recommended for compliance and market access

6. Cultural & Consumer Insights

Business culture: hierarchical, relationship-oriented

Spanish and Guarani are primary languages; English limited to business hubs

Consumers are price-sensitive; urban middle class seeks quality imported products

7. Challenges & Risks

Landlocked geography limits logistics

Small domestic market

Competition from regional suppliers

Infrastructure gaps outside major cities

8. Case Study

UK firms have delivered agribusiness technology, renewable energy projects, and industrial machinery, showing the importance of high-value expertise and long-term partnerships.

9. Practical Entry Tips

Partner with local distributors, agents, or JV partners

Focus on high-value sectors: agritech, renewable energy, infrastructure, manufacturing

Emphasise UK quality and reliability

10. Conclusion

Paraguay offers niche but promising opportunities for UK exporters in agribusiness, renewable energy, infrastructure, and manufacturing, requiring strategic partnerships and sector focus.