The agreement between Mercosur and the European Union could expand Paraguayan exports, attract investment and facilitate access to technology, but taking advantage of this market will depend on companies and public agencies being able to meet sanitary, environmental, labor and traceability requirements. The Paraguayan government and private sector have already begun analyzing the agreement’s impact on production, export opportunities, competitiveness and investment.
The assessment was presented at the talk “EU-Mercosur Export Route: Strategies for Entering the European Market,” organized by the Paraguayan Industrial Union (UIP), through Club Mipymes, and CAF, the Development Bank of Latin America and the Caribbean. The speaker was Shunko Rojas, a specialist in international trade, investment and economic development, a former undersecretary of international trade in Argentina, and a member of the Mercosur-EU agreement negotiating team. The event brought together officials, business representatives, international organizations, companies and MSMEs.
Rojas said the trade opening should be assessed beyond tariff reductions. To sell in Europe, companies will need to demonstrate control over their processes, obtain certifications, accept audits and guarantee the origin and quality of their products. The recommendation presented was to assess companies and production chains to identify gaps before seeking new buyers.
Areas with potential for faster market entry include agriculture, forestry, renewable energy, plastics and light manufacturing. Meat, leather, leather products and processed foods were also mentioned. The aim is to move from exporting raw materials to products with greater added value.
Micro, small and medium-sized enterprises are among those that could benefit most, but they also face the greatest difficulties in exporting and accessing international markets. Limited scale, financing, market information, certification and technical capacity are obstacles. The agreement could reduce tariff barriers, facilitate the adoption of standards, create business links and open investment opportunities. Jorge Srur, CAF representative in Paraguay and regional manager for the Southern Cone, summed up the scale of the problem by saying that the challenge facing small businesses is “a challenge for all of Paraguay.”
Eduardo Felippo, UIP vice president for academic training, said that quality, safety and traceability requirements could also become a competitive advantage for companies able to incorporate them into production.
Another issue discussed was the division of export quotas among Mercosur countries. Brazil supports a larger share because it is the bloc’s largest market and has greater production capacity, while Paraguay proposes 25% for each country. The delay in reaching an agreement, Rojas said, harms all members and could require sector-specific formulas instead of a single rule for all products. Taken together, the reports show that the agreement offers opportunities but requires coordinated preparation by the government, companies and production chains, particularly to help MSMEs overcome regulatory barriers while the quota dispute remains unresolved.