Overview: The Paraguayan official trade data that is publicly available is rather broadly aggregated, making it difficult to disaggregate the data into specific sectors. Official statistics probably underestimate imports by as much as 60 percent. The great difference in the U.S. Census Bureau and Paraguayan statistics is due to under invoicing and non-registered imports (contraband).
A special regime for ―re-export goods, including computers, accessories, parts, and components are aimed at formalizing and making competitive trade in those products. While imports of computers and accessories have shifted somewhat towards inexpensive items from Asia (including counterfeit goods), buyers from the region coming to Paraguay are still drawn to shop for quality goods imported from the United States at lower prices than in their home countries. It is estimated that at least half of Paraguay's imports are re-exported. High excise taxes and value added taxes in Brazil and Argentina, which are unaffected by MERCOSUR common tariffs, could continue to provide incentives to the import/re-export activities of Paraguayan merchants.
Opportunities: Computers and computer accessories are by far the major export items from the United States to Paraguay (49.3 percent of total U.S. exports to Paraguay), and have been so for many years. It is believed that the demand for U.S. quality goods will continue.
Senior government officials have stated publicly their intention to upgrade public sector information systems, some of which has already occurred. As purchases are required by public offices, tenders will be published in the government contracting bureau’s website.