AGP Executive Report

Digital Payments Boom: Paraguay’s digital payments now make up 82% of all service transactions, up from 66% in 2021, with QR and mobile driving growth and 165,000 connected establishments. Public Procurement Push: Paraguay’s DNCP is using AI to help micro, small and medium enterprises find tenders they can realistically win, since under 9% of public contracting goes to MSMEs. Electric Mobility Plan: Paraguay’s clean-power advantage is pulling investment interest toward an electric vehicle economy to cut fuel imports and build local jobs. Climate Risk for Industry: El Niño is intensifying fast, with higher flood risk for the Paraná–Paraguay–Uruguay basins that can disrupt rural production and supply chains. Carbon Credits Deal: Taiwan and Paraguay are advancing a pilot carbon credit project in Paraguay’s Chaco, aiming to test verification and transfer methods. Labor Pressure: Public doctors and teachers announced September strikes tied to pay, supplies, and the 2027 budget debate. Environment Watch: A report alleges UK retailers sell charcoal linked to deforestation in Paraguay’s Gran Chaco, raising reputational risk for forestry-linked supply chains. Food Market Signal: Paraguay’s biscuit market hit US$107M in annual sales, led by sweet varieties, with Asunción driving most volume.

Electric Mobility Push: Paraguay’s clean-power advantage is now being pitched as the engine for an electric vehicle economy, aiming to cut fuel imports and attract investment tied to ANDE-linked renewable generation. Carbon Markets & Forestry: Taiwan and Paraguay agreed on a pilot carbon credit project for five hectares of woodland in Paraguay’s Chaco, focused on practical methods to verify and transfer credits. Procurement for MSMEs: Paraguay’s public contracting system is still leaving most micro, small and medium enterprises out—less than 9% of procurement value goes to MSMEs—while a new AI approach is being tested to match firms to tenders they can realistically win. Food Industry Watch: Paraguay’s biscuit market keeps growing, reaching about US$107M in annual sales, with sweet biscuits dominating and Asunción driving most volume. Labor Pressure: Public sector doctors and teachers announced September strikes, escalating demands as Congress debates the 2027 budget. Trade & Environment Scrutiny: A Reuters investigation links UK retailers’ charcoal to Paraguayan Gran Chaco deforestation, raising pressure around EU-Mercosur trade and sustainability claims.

Electric Mobility Push: Paraguay’s clean-power advantage is now being pitched as the base for an electric vehicle economy, aiming to cut fuel imports and pull in investment and jobs. Carbon Markets & Environment: Taiwan and Paraguay are moving ahead on a pilot carbon credit project in Paraguay’s Chaco, focused on afforestation/reforestation methods and practical verification steps. Public Procurement Tech: Paraguay is using AI to help micro, small and medium firms find tenders they can realistically win, since fewer than 9% of public contracting goes to MSMEs. Labor Pressure in Health: Public doctors in Paraguay plan strikes for Sept. 21-22, adding to earlier August walkouts as Congress debates the 2027 budget. Food Industry Watch: Paraguay’s biscuit market keeps growing, reaching about US$107M in annual sales, with sweet varieties dominating. Trade & Sustainability Scrutiny: UK retailers are linked to charcoal tied to deforestation in Paraguay’s Gran Chaco, raising new pressure around EU-Mercosur trade and forest impacts.

Electric Mobility Push: Paraguay’s clean-power advantage is now being pitched as the backbone for an electric vehicle economy, aiming to cut fuel imports and attract investment into transport and related jobs. Carbon Credits & Environment: Taiwan and Paraguay are moving ahead with a pilot carbon credit project in Paraguay’s Chaco, focused on afforestation/reforestation methods and practical ways to verify and transfer credits. Public Procurement for MSMEs: Paraguay is using AI to help micro, small and medium enterprises find tenders they can realistically win, tackling the gap where under 9% of public contracting goes to MSMEs. Food Industry Growth: Paraguay’s biscuit market hit about US$107M in annual sales, with sweet varieties dominating and Asunción driving most volume. Labor Pressure: Public doctors and teachers in Paraguay announced September strikes, escalating demands as Congress debates the 2027 budget. Trade & Sustainability Scrutiny: UK retailers are linked to charcoal tied to deforestation in Paraguay’s Gran Chaco, adding pressure as Paraguay seeks deeper EU trade ties. Regional Security: Peru is joining the U.S.-led “Shield of the Americas” coalition against transnational drug cartels, with Paraguay listed among founding members.

Electric Vehicle Push: Paraguay’s clean-power advantage is now being pitched as the backbone of an electric vehicle economy, aiming to cut fuel imports and pull in investment and jobs tied to clean mobility. Industrial Growth: Paraguay’s manufacturing is reported up 26% year-on-year, with the government pointing to a wave of new projects and calling for more predictability, infrastructure, and energy reliability to land bigger capital. Procurement for MSMEs: A new push uses AI to help micro, small, and medium firms find tenders they can realistically win, since fewer than 9% of public contracting dollars reach MSMEs. Public Sector Pressure: Doctors and teachers in Paraguay are set to strike in September as Congress debates the 2027 budget, escalating demands over pay, supplies, and staffing. Food Market Watch: Paraguay’s biscuit market is reaching about US$107M annually, led by sweet varieties and concentrated sales around Asunción. Trade & Environment Scrutiny: UK retailers are linked to charcoal tied to deforestation in Paraguay’s Gran Chaco, adding pressure as Paraguay seeks deeper EU trade ties.

Public Sector Labor: Paraguay’s public doctors and teachers are set to strike in September as Congress debates the 2027 budget, with doctors (Sinamed) planning walkouts on Sept. 21-22 after earlier August action over pay, medicines, and permanent positions. Industrial Growth Push: Paraguay’s manufacturing is up 26% year-on-year, with the sector employing about 350,000 people, as the Industry and Commerce minister calls for more predictable rules, better infrastructure, and reliable energy to attract US$500M–US$1B projects. Forestry & Exports Under Scrutiny: A Reuters/Global Witness investigation links UK retailers (including B&Q and Waitrose) to Paraguayan charcoal tied to Gran Chaco deforestation, raising pressure as Paraguay seeks deeper EU trade ties. Investment Climate: Paraguay’s “Investing in Paraguay Forum #3” highlighted the Paraguay Investor Pass and opportunities in stocks, real estate, and tourism—alongside risks investors should price in. Agribusiness Market Access: Paraguay and Chile agreed phytosanitary requirements for fresh Chilean blueberries, opening a new route for fruit exports into the Paraguayan market. Trade & Supply Chain Security: Brazil rescued 479 people from labor exploitation in August, including Paraguayan victims, with construction and rural seasonal crops among the hardest-hit sectors.

Paraguay Manufacturing Boom: Paraguay’s manufacturing output jumped 26% year-on-year, adding about 350,000 jobs as the government pushes for bigger, faster investment—though officials say investors still need more predictability, infrastructure, and reliable energy. Forestry & Jobs Spotlight: Fepama launches Expo Madera 2026 in Asunción (Sept 10-12) to showcase forestry’s growth potential, innovation, and job creation. Agritech Push: Agro IA and UNA engineering students unveiled plans for AI-driven autonomous aerial spraying to boost precision and cut costs for producers. Investment Climate Watch: The “Investing in Paraguay Forum #3” discussed the new Paraguay Investor Pass and what foreign backers should weigh across markets, real estate, and tourism. Carbon Markets Progress: Paraguay is working on legislation to regulate and stimulate carbon markets, aiming to bring more legal clarity for certificates. Trade & Market Access: Paraguay cleared phytosanitary requirements to import fresh Chilean blueberries, opening a new Latin American supply channel. Energy/Infrastructure Link: Paraguay is positioning itself to be more predictable as it draws resources from a hydroelectric power station—key for industrial expansion. Supply Chain Risk: A Global Witness investigation links UK charcoal brand Big K to Paraguayan timber tied to deforestation in the Gran Chaco, raising pressure on enforcement of deforestation-free rules. Logistics & Connectivity: New and expanded flight routes are set to boost Asunción’s role as a regional hub, with more direct links planned through 2026. Sustainability Debate: Industry and NGOs are lobbying over UN carbon credit rules, with critics warning proposed changes could weaken integrity.

6G Policy Push: India endorsed the global Call to Action for 6G leadership and security, joining Paraguay and other countries in backing open, interoperable, and secure next-gen wireless networks. Agribusiness Innovation: Cargill Animal Nutrition highlighted how heavy R&D investment and “glocal” solutions drive practical gains for farm production chains. Trade Access for Fruit: Paraguay and Chile agreed phytosanitary requirements to let fresh Chilean blueberries enter the Paraguayan market, using inspections, monitoring, and pest-free area certification. Forestry Spotlight: Paraguay’s lumber sector is gearing up for Expo Madera 2026 in Asunción, aiming to showcase forestry innovation and job-creation potential. Ag Tech Leap: Agro IA and UNA engineering students unveiled plans for autonomous AI aerial spraying to boost precision and cut costs for crop producers. Air Connectivity: Asunción’s airport is entering a high-demand travel stretch, with airlines adding routes and frequencies to strengthen Paraguay’s regional hub push. Logistics & Border Reality: A look at the Bioceanic Bridge corridor flags how new infrastructure can speed trade to Pacific ports while raising security and illicit-trade risks. Local Culture Meets Industry: A Paraguayan costume designer joins Cirque du Soleil’s Alegría tour, underlining how creative talent is exporting Paraguay’s culture.

Forestry & Jobs: Paraguay’s lumber sector is gearing up for Expo Madera 2026 (Sept. 10–12) in Asunción, with the Paraguayan Federation of Lumbermen (Fepama) pitching the event as a showcase for forestry innovation, employment potential, and a clearer public understanding of the industry’s economic and environmental role. Agri Tech: Agro IA, with National University of Asunción (UNA) aeronautics students, is developing autonomous AI aerial spraying using unmanned ultralight aircraft, targeting about 1,000 hectares per day and up to 300,000 litres capacity to cut costs and boost precision. Logistics & Trade Security: A border-crossing upgrade tied to Brazil’s Capricorn Bioceanic Route could reshape enforcement ahead of the Bioceanic Bridge completion by end-2027, with customs officials warning that Pacific access also raises risks from illicit trade and organized crime. Air Connectivity: Paraguay’s Asunción airport is entering a high-demand stretch, with airlines adding routes and frequencies as the country pushes to strengthen its regional hub position. WRC Motorsport: FIA increased Rally1 tyre allocations for Rally Chile to 36 after tyre-wear issues traced to abrasive stages and warm conditions in Rally Paraguay. Digital & Global Tech: Paraguay is also set to host the Third Taiwan-Paraguay Technology Forum focused on artificial intelligence, signaling continued regional tech engagement.

Agri-Trade Shock: EU rules tightening over antibiotic use keep hitting Mercosur meat flows, with the EU suspending Brazilian beef and poultry imports—raising knock-on pressure for Paraguay exporters watching how Brussels enforces health and welfare standards. Agri-Tech Push: Paraguay is moving toward autonomous aerial spraying with an AI-led project (Agro IA with UNA aeronautics students), aiming to automate crop applications and boost efficiency for producers. Aviation & Connectivity: Asunción’s route expansion is entering a peak period, with airlines adding frequencies and new direct links as Paraguay positions itself as a regional hub. Investment & Industry Mix: A new Paraguay foreign-investment study highlights a broader inflow beyond traditional sectors, led by real estate, trade, transport, telecoms and data processing. Tech & AI Networking: The third Taiwan-Paraguay Technology Forum in Asunción (Sept 11–12) will focus on AI and innovation across sectors like smart agriculture, energy and logistics. Finance Watch: Paraguay’s business community is also tracking regional currency and rates volatility as global oil and dollar moves continue to sway market sentiment.

Autonomous Ag Tech: Paraguay is moving toward AI-led autonomous aerial spraying, with Agro IA partnering with aeronautics students at UNA to build unmanned ultralight aircraft aimed at cutting costs and boosting precision for producers. Air Connectivity: Asunción’s route expansion is set to intensify, including a planned Asunción–Montevideo direct link in early 2027 plus more frequencies to São Paulo and Lima, supporting trade and tourism growth. FDI Mix Widens: A new BCP-FLAR study shows Paraguay drawing foreign capital across more sectors—led by real estate, trade, transport, telecoms and data processing—while manufacturing and primary activities also gain share. AI & Industry Networking: The third Taiwan-Paraguay Technology Forum (Sept. 11-12) will spotlight AI’s impact on smart agriculture, energy, logistics, cybersecurity and digital government, linking academia, industry and public agencies. Energy Predictability: Paraguay is seeking more predictability as it manages construction and social investment tied to hydroelectric resources from Itaipu Binational. Climate Integrity Fight: International carbon credit developers and NGOs are pushing back against proposed UN rule changes over “reversal risk,” a debate with direct implications for future climate-linked projects.

Paraguay Investment & Industry: A new Central Bank of Paraguay (BCP) and FLAR study shows a broadening foreign investment wave since 2008, with non-financial services (trade, telecoms, transport, real estate, data processing) leading net flows and manufacturing also gaining share. Tech & Skills: The third Taiwan-Paraguay Technology Forum lands in Asunción on Sept. 11-12, with AI, Industry 4.0, smart agriculture, logistics, cybersecurity, and business productivity on the agenda. Energy & Planning: Paraguay is pushing for “predictability” as it draws resources from the Itaipu Binational Hydroelectric Station to fund construction and social investment. Air Connectivity: LATAM plans a new Asunción–Montevideo route in early 2027 plus more flights to São Paulo and Lima, aiming to boost trade and tourism links. Regional Trade Pressure: EU moves to suspend Brazilian meat imports over antibiotic rules could ripple across Mercosur supply chains that include Paraguay. Sports & Culture: Rally del Paraguay delivered a historic GAZOO Racing hat-trick, while Paraguay also hosts Super 8 Week (Sept. 15-24) to revive analogue filmmaking.

Air Connectivity: LATAM plans to expand Paraguay’s routes, including a new Asunción–Montevideo service starting in early 2027 (five weekly flights, pending approval) and more frequency to São Paulo and Lima. Foreign Investment: A new Central Bank of Paraguay–FLAR study shows a broadening wave of FDI since 2008–2024, led by real estate, trade, transport, telecoms and data processing, with manufacturing and primary sectors also gaining. Tech & AI: The third Taiwan–Paraguay Technology Forum lands in Asunción on Sept. 11–12, focusing on AI’s impact across industry 4.0, energy, smart agriculture, logistics, cybersecurity and digital government. Energy & Industry Context: Separate reporting highlights how mega data centers are expanding in Argentina’s Patagonia—driven by cool temperatures, renewables and nearby power—an angle that matters for regional power planning and industrial demand. Culture & Skills: Paraguay’s Museum of Sciences (MuCi) rolls out September workshops and hands-on sessions, including nature, space-themed design activities and analogue film learning via Super 8 Week. Sports Spotlight: GAZOO Racing celebrated a historic Rally del Paraguay hat-trick, while Paraguayan ultrarunner Ivo Kunzle finished Leadville Trail 100 in Colorado as the first Paraguayan on record.

Paraguay Air Connectivity: LATAM plans to expand flights from Silvio Pettirossi, including a new direct Asunción–Montevideo route starting in Q1 2027 with five weekly flights, plus more services to São Paulo and Lima. Industry & Innovation: Paraguay will host the 16th Customer Experience and Innovation Congress on Sept. 7–8 in Asunción, with MIC support and a GUIDEX platform to help SMEs export. Agri-Food & Trade Pressure: The EU suspended imports of Brazilian beef, poultry, eggs, honey and more over antimicrobial compliance concerns—an issue that can ripple across Mercosur supply chains that include Paraguay. Climate & Land Use: WWF highlights the Pantanal’s drying trend, with over 1 million hectares lost by 2025 vs 1985, underscoring regional climate risks that also affect Paraguay’s water and agriculture. Culture & Skills: Super 8 Week (Sept. 15–24) brings free online analogue filmmaking lectures to Paraguay, feeding a broader Yvyra residency program. Local Spotlight: Paraguayan ultrarunner Ivo Kunzle became the first Paraguayan to finish Colorado’s Leadville Trail 100 Run, raising funds for people with intellectual disabilities.

EU-Mercosur Meat Labeling: A new Irish Green Party bill would force “Mercosur Meat” to appear prominently on packaging sold in Ireland, covering beef from Argentina, Brazil, Paraguay and Uruguay, as the EU keeps tightening rules after suspending Brazilian meat imports over antimicrobial concerns. Agri-Trade Pressure: Brazil says it’s negotiating to lift the EU suspension, while exporters warn there’s no easy substitute for the EU market—an issue that matters for Paraguay’s beef and related supply chains. Paraguay Business & Innovation: Paraguay will host its 16th Customer Experience and Innovation Congress on Sept. 7–8 in Asunción, with MIC support and a GUIDEX platform to help SMEs export. Air Connectivity: LATAM plans a new Asunción–Montevideo route in early 2027 and will increase flights to São Paulo and Lima, boosting trade and tourism links. Science & Community: MuCi’s September program in Asunción mixes spring-themed workshops (monarch butterflies, seed bombs, fungi) with hands-on engineering fun.

Air Connectivity: LATAM plans to expand Paraguay’s links with a new direct Asunción–Montevideo route starting in Q1 2027 (five weekly flights, pending approval) and more frequencies to São Paulo and Lima, discussed with President Santiago Peña at Mburuvicha Róga. Industry & Innovation: Paraguay will host the 16th Customer Experience and Innovation Congress on 7–8 September in Asunción, with MIC support and a GUIDEX platform aimed at helping SMEs navigate exports. Science for Skills: MuCi’s September program in Asunción mixes spring-themed science events—monarch butterflies, seed bombs, fungi, and a flying saucer workshop—at its Textilia site. Trade & Food Safety Watch: The EU has suspended imports of Brazilian meat and related animal products over antimicrobial compliance concerns; Brazil says it’s ready to resolve the issue via audits and talks—an important signal for regional exporters. Agri-Exports Angle: A U.S. ag economist says Brazil and Paraguay are well positioned to supply expanded U.S. beef imports, though details on quotas remain unclear.