The Paraguayan market for finished cattle is maintaining stable prices despite downward pressure in Brazil, supported by limited supply and robust international demand, with record values for beef exports.
Mercosur
Mercosur is the South American trade bloc linking Paraguay, Argentina, Brazil, Uruguay, and associated states. For Paraguay it shapes trade, tariffs, foreign policy, and regional negotiations.
Paraguay has launched the Validador PY platform to verify digital documents across the Mercosur trade bloc, along with a new version of its service provider registry, Repse 2.0, aiming to reduce bureaucracy and combat informality.
Paraguayan President Santiago Peña reaffirmed his country's alignment with the United States and Taiwan and declared that he will not yield to pressure from China to establish a formal negotiation channel with Mercosur, linking the Chinese pressure to the recent 5G network tender.
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.
Mercosur has approved an agreement granting regional legal validity to the digital identities of its member countries, allowing citizens and businesses to carry out cross-border procedures online without paper documentation.
Paraguay conditions trade agreement negotiations with China on maintaining its diplomatic ties with Taiwan, highlighting progress in Mercosur's talks with Japan and Bolivia's integration into the bloc.
Mercosur and Japan have begun negotiations for an Economic Partnership Agreement that could create one of the world’s largest free trade zones, with a combined GDP of $7 trillion and a focus on sectors such as agribusiness, energy, and the automotive industry.
Paraguay and Colombia strengthen cooperation against drug trafficking and transnational organized crime in meeting led by SENAD.
The foreign ministers of Paraguay, Uruguay, and Bolivia signed the formal reactivation of the Urupabol integration mechanism in Asunción, which aims to strengthen political coordination and cooperation in areas such as infrastructure and trade.
Paraguay beat Germany 4–3 on penalties after a 1–1 draw, advanced to the 2026 World Cup round of 16, and had a national holiday declared by President Santiago Peña to celebrate the historic victory.
The Mercosur Summit kicked off in Luque with a focus on the trade agreement with the European Union and negotiations over the Itaipú energy tariff.
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.
The EU-Mercosur trade agreement has been provisionally in force since May 1, pending final approval by the European Parliament, which depends on a review by the Court of Justice of the European Union regarding the pact's compatibility with the European bloc's treaties.
The European Union's ban on Brazilian beef imports opens up a historic opportunity for Paraguay in a global scenario where supply falls short of demand, according to specialist Marcos Medina.
Former Senator Sixto Pereira, from the Tekojoja party, stated that Paraguay is currently experiencing "the government of the mafia and organized crime," recalling the 14th anniversary of the removal of then-President Fernando Lugo on June 22, 2012, through a political trial in Congress. He emphasized that this political situation has significant implications for foreign investors, diplomats, and regional observers due to the resulting political and economic instability affecting business and international cooperation.
The Paraguayan government has opened a public tender worth G. 10 billion (approximately USD 1.6 million) to contract protocol event organization services for the Mercosur Summit, which will be held on June 29 and 30, 2026, in Asunción, including hospitality, catering, protocol coordination, and institutional gifts featuring Paraguayan handicrafts.
Japan and Mercosur announced the formal start of negotiations for an Economic Partnership Agreement during the G7 Summit in Évian-les-Bains, France, following a meeting between Japanese Prime Minister Sanae Takaichi and Brazilian President Lula.
The Argentine government's decision to expand the installation of free shops beyond border posts and authorized urban centers, formalized by Decree 438/2026, has raised alarm among merchants in Ciudad del Este, Paraguay, who fear losing customers to neighboring Puerto Iguazú, Argentina.
The MIC met with European ambassadors to assess access for Paraguayan products to the EU market under the Mercosur-EU agreement, with a focus on zero-tariff quotas in sectors such as meat, rice, honey, and organic sugar. The agreement's entry-into-force date requires independent confirmation.
Ricardo Canese criticized President Santiago Peña for granting subsidies to electro-intensive companies that generate 433 times fewer jobs per megawatt than Paraguayan MSMEs.
Brazil has enacted the Agreement on Police Cooperation Applicable to the Border Areas of Mercosur, signed by President Lula and published in the Official Gazette of the Union, allowing pursuits and joint operations among the security forces of Brazil, Argentina, Paraguay, and Uruguay in border zones.
The trade agreement between the European Union and Mercosur, in force since May 1, 2026, guarantees zero or preferential tariffs for 95% of Paraguayan exports to the European market, consolidating the country as a production and export platform geared toward Europe.
Brazil has proposed the creation of a free flight zone within Mercosur to allow national airlines to operate domestic flights in other member countries, aiming to enhance regional integration and facilitate low-cost flights.
The Mercosur Parliament (Parlasur) condemned the acts of violence recorded in Bolivia during protests demanding the resignation of President Rodrigo Paz and called for respect for the Ushuaia Protocol, the bloc's democratic clause.