The German ambassador to Paraguay, Gordon Kricke, stated that there is growing interest from German companies in investing in the country, especially in the green energy, agribusiness, and maquila sectors, driven by local stability and the Mercosur-European Union agreement.
maquila
Maquila refers to Paraguay's export-oriented manufacturing and assembly regime. It is important for industrial policy, jobs, investment, and trade with Brazil and other markets.
Exports from Paraguay's maquila sector totaled $858.7 million through July 2026, with growth driven mainly by new products like ethyl alcohol and biodiesel.
Paraguay implemented a new permanent residence visa for foreign investors requiring applications starting at $70,000 in productive, tourism, real estate, or financial sectors.
Paraguay's maquila export regime grew by 25% in the first half of 2026, reaching $717 million, with the Mercosur trade bloc as its main destination and a 6% increase in jobs.
Economist Jorge Garicoche states that Paraguay, which attracts low-scale foreign investments mainly in plastics and textiles, needs more stable rules in infrastructure and energy to capture larger and impactful projects, remaining a strategic destination for Brazilian entrepreneurs.
Paraguay recorded a 35% increase in the establishment of foreign companies in 2025, totaling 660 new firms, according to Vice Minister Eduardo Gustale.
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.