Paraguay and the other Mercosur countries held the first round of negotiations in Buenos Aires for a preferential trade agreement with Vietnam. The meetings took place from August 24 to 28 and included technical working groups addressing a possible instrument aimed at expanding market access, diversifying exports and fostering investment.
The delegations discussed trade in goods, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, geographical indications and trade defense. Legal and institutional matters, economic cooperation, support for small and medium-sized enterprises, competition, customs procedures and trade facilitation were also discussed.
The outcome could directly affect Paraguayan companies' access conditions in the Vietnamese market, but no agreement has been concluded and no tariff benefits have yet been defined.
Paraguay's Ministry of Foreign Affairs presented the process as part of the expansion of Mercosur's network of trade agreements. The official expectation is to create opportunities for Paraguayan producers and companies, foster investment and support job creation in an Asian market described by the authorities as having rapid economic growth and high consumption of primary and agro-industrial goods.
The Paraguayan delegation brought together officials from the Ministry of Foreign Affairs, the Ministry of Economy and Finance, the Ministry of Industry and Commerce, the Ministry of Agriculture and Livestock, the National Service for Animal Quality and Health, the National Directorate of Intellectual Property and the National Competition Commission, the body responsible for promoting free competition in the country.
The government also stressed the need for a balanced framework that takes into account the sensitivities of Paraguay's productive, industrial and agricultural sectors. The negotiations will continue in technical stages, and the impact on companies will depend on any rules agreed, sanitary requirements and any trade-defense mechanisms that may be incorporated.