Chile

The suspension of Brazilian beef exports to the European Union could redirect Brazil’s supply and increase competition for Paraguay in Chile and the United States, while Mercosur discusses how to divide a potential European quota.

The European Union’s two-year sanitary suspension of Brazilian beef could increase Paraguay’s presence in the European market, while also intensifying Brazilian competition in Chile and other regional destinations.

Paraguay ended 2025 with 16 banks, maintaining virtually the same number of institutions since 2013 and ranking among Latin America’s smallest banking markets, amid a regional decline from 551 to 524 banks over the period.

Paraguay's timber industry attracts about 20 international business delegations to a fair in September 2026, amid sector export growth that exceeded 100,000 tons from January to July.

Paraguayan exports of soybeans and derivatives totaled $3.5 billion in the first seven months of 2026, a 41% growth compared to the previous year, with Argentina as the main destination.

H&M has opened its first store in Paraguay, with a second unit scheduled for next week, and confirmed plans to expand to Argentina in 2027, as part of its growth strategy in Latin America.

Paraguay has the third lowest sovereign risk in Latin America and was recognized as the second best country in South America to establish a new residence, with experts highlighting its advantages in energy, taxes, water, and stability for attracting investments.

Paraguay's beef exports fell 24.6% in volume in the first seven months of 2026, but the total value declined only 9% due to an increase of more than 20% in the average price per kilogram.

Paraguayan President Santiago Peña has enacted the law approving the Mercosur agreement to provide consular assistance to citizens in countries where their nation lacks representation.

The limited supply of fat cattle in Paraguay, caused by climatic factors and on-farm retention, is pushing prices upward and reducing slaughter schedules, intensifying competition among meatpacking plants amid external commercial pressure.

The Paraguayan passport rose to 28th place in the global ranking in July 2026, with visa-free access to 145 countries, rounding out the list of the ten most powerful in the Americas, behind Chile, Argentina, Brazil, and others.

President Santiago Peña supports a bill that would allow mining in Médanos del Chaco National Park, sparking a debate between economic development and environmental protection.

The World Bank has kept Paraguay in the upper-middle-income category, a position shared by the majority of South American countries, while Uruguay and Chile are classified as high-income and Bolivia as lower-middle-income.

The Paraguayan Senate is considering an open skies agreement with Argentina that, by replacing a 1964 treaty, aims to reduce flight costs and create new routes by granting greater freedom to airlines.

Paraguay recorded deflation of 0.3% in June, reducing its annual inflation rate to 2.1%, the second lowest in the region, behind only Ecuador.

Taiwan was the primary destination, purchasing 86% of the pork exported by Paraguay in the first half of the year, which saw an 11% growth in volume and a 15% increase in revenue.

Paraguay's Congress will hold a joint session on Tuesday, June 30, to receive the president of Chile, José Antonio Kast, with protocol honors on the occasion of the Mercosur Heads of State Summit.

Paraguay formally joined the Santiago Regional Commitment against Transnational Organized Crime in June 2026, during the 56th General Assembly of the OAS in Panama City, expanding the agreement initially signed by Argentina, Bolivia, Chile, Ecuador, and Peru.

In 2026, Paraguay's apparent labor productivity was US$13,728 per person, placing it below eight Latin American countries, including Brazil, Chile, and Uruguay, and surpassing only Bolivia.

Chilean diplomat Hernán Brantes Glavic presented his credentials to Paraguayan Foreign Minister Rubén Ramírez Lezcano as the new ambassador of Chile to Paraguay, with the official ceremony before President Santiago Peña expected to take place at the Palacio de López.

The rise in auto parts theft in Paraguay, especially in vehicles imported through Chile, has driven up insurance premiums and led insurers to adopt measures such as coverage limits, annual claim caps, and deductibles to contain losses.

Economist Luis Rojas criticized the economic model of Santiago Peña’s government in Paraguay, highlighting contradictions between the growth rhetoric and fiscal challenges, such as the public debt reaching a historic level of USD 21.7812 billion in the first four months of 2026, representing 36.2% of GDP, along with low tax revenue, poor public services, labor informality, and foreign direct investment of only USD 400 million in 2024.

Senave recorded a record in Paraguay's stevia exports through May 2026, with a 518% increase compared to the previous year, totaling 142 tons exported mainly to Argentina, Uruguay, Chile, and Spain.

Paraguayan exports with a Certificate of Origin totaled $693 million in May, with the Americas as the main market ($510 million), led by Brazil ($190 million), followed by Argentina ($170 million) and Chile ($60 million).