AGP Executive Report

EU Trade Shock for Paraguay’s Beef Sector: The EU will suspend imports of Brazilian meat and other animal products from Sept. 3 unless Brazil proves compliance on animal health rules, raising uncertainty for Mercosur-linked supply chains that include Paraguay. Public Health Staffing Crisis: After a five-day strike, more than 430 specialists resigned from Paraguay’s public health system, leaving major gaps in pediatric and high-complexity care at top hospitals. Beef Exports & Diplomacy: Paraguay’s ambassador to Israel says exports hit $220M in 2025 and could reach ~$300M in 2026, with efforts to boost trade visibility for Israeli retailers. Food & Pharma Signals for Paraguay: Knight Therapeutics received Colombia approval for TAVALISSE, and the company says it has submitted for regulatory review in Paraguay as well. Energy & Finance Context: Global energy and currency pressures continue to ripple through the region, with the US dollar strengthening and oil prices rising—factors that can affect import costs and industrial input prices.

EU Trade & Food Safety: The European Union will suspend imports of Brazilian meat and other animal products after Brazil failed to provide enough guarantees on antibiotic compliance, with poultry and honey audits due soon and a possible return within weeks if findings are positive. Paraguay Health & Labor: Nearly 300 specialist and subspecialist doctors in Paraguay’s public system plan mass resignations after a five-day strike over wages, medical supplies, and temporary contracts, warning of major service gaps including pediatric surgery. Beef Exports & Diplomacy: Paraguay’s ambassador to Israel says Paraguayan beef exports hit $220M in 2025 and could reach about $300M in 2026, pushing for more visibility of “Paraguayan origin” in Israeli supermarkets. Agri-Tech & Farming Innovation: New ag tech startups are set to debut at Husker Harvest Days, spotlighting next-gen irrigation and farm automation ideas aimed at producers. Infrastructure & Traffic: Asunción’s Avelino Martínez Avenue traffic plan starts Monday (Aug. 31), rerouting vehicles during phase-two construction and adding concrete paving and storm drainage works. Energy & Industry Risks: Reports highlight smuggling of weight-loss drugs into Brazil from Paraguay, underscoring supply-chain and enforcement pressures around fast-growing pharma demand.

Public Health Labor Crunch: Nearly 300 Paraguayan public-sector specialists and subspecialists plan to resign after a five-day strike over wages, medical supplies, and temporary contracts, warning of major hospital impacts including pediatric surgery. Border Trade & Food Safety: Brazil’s weight-loss drug boom is driving smuggling from Paraguay, with seizures of tirzepatide and semaglutide hidden in everyday items—raising health risks as unapproved injections spread. Agri-Exports Expansion: Paraguay says 75 products reached 43 new destinations in the first seven months of 2026, including first shipments to Nepal and new biodiesel sales to Singapore. Beef Diplomacy: Paraguay’s ambassador to Israel is pushing for more visibility of Paraguayan beef, citing export growth to Israel and aiming to keep trade resilient. Infrastructure & Logistics: Asunción traffic changes begin for Avelino Martínez Avenue works, with diversions to keep flow toward key access routes. Industry Trade Policy: India is urging Brazil for more predictable pharma regulation and market access under Mercosur talks—relevant for Paraguay as part of the bloc.

Infrastructure & Mobility: Paraguay’s MOPC will start a new traffic management plan on Avelino Martínez Avenue from Monday, 31 August, rerouting Asunción-bound and Acceso Sur junction flows while crews install concrete paving and storm drainage for Lot 1 works. Trade & Exports: Paraguay says 75 products reached 43 new destinations in the first seven months of 2026, including first shipments to Nepal (sunflower oil, mung beans, cotton fibre) and new regional gains like biodiesel to Singapore and safflower oil to Uruguay. Health & Security (Cross-border): Reports highlight a surge in smuggled weight-loss drugs along the Brazil–Paraguay border, with authorities finding GLP-1 injections hidden in everyday goods and warning of serious health risks from unregulated products. Crafts & Local Industry: The Asunción Port cultural center will host the opening of La Recova artisans’ temporary space, keeping vendor sales running during restoration and boosting visibility for local producers. Regional Business Links: “Connect & Cheers 3” brought together diplomats and business leaders, including Paraguay representatives, to build partnerships tied to trade and investment.

Bitcoin & Power Pressure: Analysts warn bitcoin mining already consumes about 30% of Paraguay’s electricity, raising energy-independence fears if growth continues toward a potential grid crisis by 2029, with mining power contracts expiring in 2027 and extensions still uncertain. Trade & Exports: Paraguay expanded export reach in the first seven months of 2026, sending 75 products to 43 new destinations and landing first-time shipments to Nepal, while biodiesel shipments to Singapore led new product-destination flows. Border Smuggling Risk: A CNN report highlights how smugglers are increasingly using the Brazil–Paraguay border to move high-value GLP-1 weight-loss drugs, with seizures surging in 2026 and health workers urging consumers to avoid informal sources. Industry & Commerce Events: Expo Yguazú 2026 opened in Yguazú with 100+ companies and a business-and-production agenda tied to the district’s 65th anniversary and 90 years of Japanese immigration, while Asunción Port’s La Recova artisans’ temporary space is set to reopen to keep trade running during restoration. Automotive Spotlight: Toyota filed trademarks for Avalon (plus Mirai, Innova Cross, Vios) in Paraguay, signaling name protection even though those models aren’t currently listed in Toyota Paraguay’s lineup.

Border Security & Health: Brazil says seizures of unauthorized weight-loss drugs (GLP-1s like semaglutide and tirzepatide) surged along the Brazil–Paraguay border, with 76,000+ units seized in the first half of 2026, raising alarms about unsafe informal sourcing. Exports & Market Access: Paraguay expanded exports in the first seven months of 2026, sending 75 products to 43 new destinations, including first shipments to Nepal (sunflower oil, mung beans, cotton fiber) and new biodiesel flows to Singapore. Trade Policy Watch: Argentina pledged to cut barriers for India’s pharma sector, a move tied to broader bilateral trade growth and potential cooperation in mining and energy. Local Industry & Commerce: Asunción Port will host the opening of La Recova artisans’ temporary space, keeping vendor activity running while the original corridor is restored. Energy & Industry Risk: Analysts warn bitcoin mining is consuming about 30% of Paraguay’s power, with concerns about grid strain and contract uncertainty beyond 2027. Automotive Signals: Toyota filed trademarks in Paraguay for Avalon and other nameplates, suggesting brand protection and possible future planning. Critical Minerals Cooperation: Four South American countries signed a strategic minerals pact to coordinate supply chains and value addition across lithium, copper, and rare earths.

WRC Commercial Push: WRC’s new commercial rights owners (Cosmobilis and Park Square Capital) say they’ll grow fan access, media coverage and manufacturer appeal—while insisting rally’s “DNA” won’t change—after talks at Rally Paraguay with FIA president Mohammed Ben Sulayem and CEO Eric Boullier. Port & Artisans: Asunción Port’s cultural center will host the festive opening of La Recova artisans’ temporary space, keeping vendor sales running during restoration, with live music and folk performances. Expo Yguazú Boost: Expo Yguazú opened at Plaza de la Amistad with 100+ companies and a program mixing culture and business, marking Yguazú’s 65th anniversary and 90 years of Japanese immigration. Beef Trade Shockwaves: The US temporarily waives out-of-quota tariffs on lean beef trimmings for 90 days, with Brazil and Paraguay among key beneficiaries—sparking debate over pricing and origin labeling. Energy Pressure from Crypto: Analysts warn bitcoin mining already consumes about 30% of Paraguay’s power, raising concerns about grid strain and potential crisis risk by 2029. Defense Procurement Watch: Paraguay is reportedly negotiating with Taiwan to acquire F-5 and AT-3 aircraft to rebuild jet capability starting around 2027. Agri-Exports Spotlight: Paraguay’s petitgrain oil remains a global “green gold,” supplying a large share of the world’s perfume ingredient demand, with production concentrated in San Pedro and Cordillera.

Expo Yguazú & Japanese roots: Paraguay’s Expo Yguazú opened at the Plaza de la Amistad, running until Aug. 30, with 100+ companies spotlighting culture, production, gastronomy and business. Organizers expect 30,000–35,000 visitors and the event marks Yguazú’s 65th anniversary plus 90 years of Japanese immigration. Port artisan boost: Asunción Port’s La Recova artisans are getting a temporary home at the Asunción Port Cultural Centre, with an official Saturday opening (Aug. 29) and stalls open Mon–Sat, 08:30–18:00, so restoration can proceed without stopping sales. Energy pressure from mining: Analysts warn bitcoin mining is consuming about 30% of Paraguay’s power, raising grid-crisis concerns by 2029 if contracts and hydrology don’t align. Agro-industry spotlight: Paraguay’s petitgrain “green gold” remains a major global perfume input, with exporters estimating 40%–70% of world supply and up to ~70% for fine perfumery. Trade ripple for beef: A US tariff-relief move on lean beef trimmings is expected to benefit Brazil and Paraguay, while excluding Argentina and Uruguay—important for regional meat exporters. Defense procurement chatter: Paraguay is reportedly negotiating with Taiwan to restore jet capability, considering F-5 and AT-3 aircraft for possible deliveries starting in 2027.

Beef Trade Shock: The U.S. temporarily waived out-of-quota tariffs on lean beef trimmings for Brazil and Paraguay for 90 days starting Sept. 1, a move that could reshape pricing and volumes for South American exporters. Cattle Outlook: Minerva warns the U.S. and Europe face structural declines in beef production, while Brazil and Paraguay keep renewing cattle cycles more efficiently—good news for regional exporters. Energy & Mining Pressure: Analysts say bitcoin mining already consumes about 30% of Paraguay’s power, raising fears of an energy crunch by 2029 if hydrology stays favorable and mining contracts aren’t extended. Critical Minerals Push: Argentina, Brazil, Chile, and Peru signed a strategic minerals pact aimed at reducing reliance on Chinese processing and coordinating supply chains. Local Industry Spotlight: Paraguay’s petitgrain oil continues to fuel high-end perfumes, with the country supplying roughly 40%–70% of global output. Defense & Aviation Ties: Paraguay is reportedly negotiating with Taiwan to acquire F-5 and AT-3 aircraft to rebuild jet capability starting around 2027. Infrastructure Watch: Infrastructure spending fell 34% in June due to stricter payment validation and documentation requirements. Automotive Signals: Toyota filed trademarks for Avalon, Mirai, Innova Cross, and Vios in Paraguay—names not currently in its local lineup. Sports & Tourism Buzz: WRC Rally del Paraguay is drawing global attention for its fan energy and push toward a carbon-neutral event.

WRC Rally of Paraguay Buzz: World Rally Championship drivers are spotlighting Paraguay’s fan energy and scenery ahead of the 27–30 August event in Itapúa, with organizers aiming for a carbon-neutral race in Latin America. Local Motorsport Talent: Indian WRC3 challengers Dean Mascarenhas and Gagan Karumbaiah return for their gravel debut in a Ford Fiesta Rally3, covering 357.64 km across 22 special stages. Energy & Mining Pressure: Analysts warn bitcoin mining is already using about 30% of Paraguay’s power, raising concerns about grid strain and energy independence risks by 2029. Defense & Aviation Talks: Paraguay is negotiating with Taiwan for potential jet capability, with F-5 fighters and AT-3 trainers reportedly in the mix for deliveries starting around 2027. Port Redevelopment: Asunción Port’s four disused warehouses are being converted into a US$6M entertainment hub via public-private partnership, targeting completion before year-end. Agro-Exports Spotlight: Paraguay’s petitgrain oil is described as “green gold,” supplying a major share of global fine perfumery demand. Infrastructure Watch: Infrastructure spending reportedly fell 34.1% in June due to stricter validation and audit requirements, slowing capital outlays.

Defense & Aviation: Paraguay is in talks with Taiwan to potentially restore its jet-fighter capability, with F-5 fighters and AT-3 trainers on the table and a reported target of 10–15 aircraft starting as early as 2027. Port & Investment: Asunción Port’s four disused warehouses are being converted into a US$6M entertainment hub via a public-private partnership, aiming to restart activity before end-2026. Agri-Industry Spotlight: Paraguay’s petitgrain “green gold” continues to feed global fine perfumery, with the country supplying an estimated 40%–70% of world supply, largely from San Pedro and Cordillera. Energy & Finance: HIVE Digital Technologies says hydro-powered mining in Paraguay can lift Bitcoin mining margins from 36% (at $60K) to 52% (at $80K). Trade & Logistics: Paraguay’s role in regional flows also shows up in Global66’s growth, which added Paraguay as a new origin market as it surpassed US$3.5B traded in Latin America. Local Business & Community: Areguá hosts a FIDE-rated chess grand prix (Aug 28–30), while Nueva Germania marks its 139th anniversary with student parades and new public works. Infrastructure Watch: Infrastructure spending in Paraguay’s region context is under pressure elsewhere, with June disbursements falling sharply due to stricter validation and audit requirements.

Agro-Industry Spotlight: Paraguay’s petitgrain “green gold” is powering global luxury perfumes, with local producers supplying an estimated 40%–70% of world petitgrain and about 70% of fine perfumery supply, mainly from San Pedro and Cordillera. Port & Logistics: Asunción Port is set to reopen parts of its waterfront with a US$6M private-investment entertainment hub, converting four warehouses under a public-private partnership—an industrial reuse that could revive activity after the port’s commercial shutdown in 2012. Energy & Mining Finance: HIVE Digital Technologies says hydro-powered Bitcoin mining in Paraguay supports margins projected to rise from 36% at $60K BTC to 52% at $80K, alongside a 73% revenue jump in Q1 FY2027. Trade Policy: Paraguay’s Mercosur bloc moves forward as the Chamber of Deputies approved the Mercosur–Singapore free trade agreement, cutting export barriers and expanding services, e-commerce, and investment rules. Tech for Public Safety: Absen and Polywall announced a partnership to deliver integrated video-wall solutions for control rooms and public safety facilities, aimed at 24/7 operational use. Regional Business Growth: Vehicle sales across Latin America rose 12.2% year-on-year in early 2026, with Paraguay up 53.8% to 33,592 units.

Port & Logistics: Asunción Port is set for a US$6M entertainment hub after four idle warehouses are converted under a public-private deal, marking the first big port reactivation since 2012. Mining & Energy Tech: HIVE Digital Technologies says hydro-powered Bitcoin mining in Paraguay could deliver 36% margins at $60K BTC and up to 52% at $80K, with Q1 FY2027 revenue jumping 73% year-on-year. Investment Migration: A new regional ranking puts Paraguay 2nd for residency program value-for-money (score 80.1), behind Panama, as Latin America competes for foreign capital. Security & Industry Tech: Absen and Polywall announced a control-room partnership combining LED displays with video-wall software for NOCs/SOCs and public safety operations. Agrifood Finance: FAO convened leaders to push more scalable investment into Latin America’s agrifood systems, citing financing gaps for small producers. Regional Air Cooperation: SOUTHAM 2026 in Tucson brings South American air chiefs together to coordinate responses to shared security threats.

Port & Real Estate: Asunción Port’s four disused warehouses are being converted into a US$6M entertainment hub under a public-private partnership, with the National Navigation and Ports Administration awarding the tender to Nuevo Mundo Entertainment S.A.; the project aims to restart activity on the waterfront ahead of end-2026. Defense & Security Cooperation: SOUTHAM 2026 gathered South American air chiefs in Tucson to coordinate responses to cross-border threats, with a focus on secure communications, early warning, counter-narcotics and emerging tech. Military Training in Paraguay: Paraguay hosts Fuerzas Comando 2026 (24–28 Aug) with elite units from 17 countries, while the Massachusetts National Guard recently helped renovate training facilities in joint engineering work. Agrifood Finance Agenda: FAO convened LAC agrifood stakeholders to push a roadmap from financial inclusion to larger-scale investment, citing climate risk and limited access to formal finance for producers. Automotive Demand: ALADDA reports Paraguay’s vehicle sales up 53.8% to 33,592 units in the first seven months of 2026, alongside strong regional growth. Digital Trade Rules: Mercosur’s electronic commerce agreement takes effect in Brazil, including a ban on customs duties for e-transactions among Brazil, Argentina, Paraguay and Uruguay. Local Tech Partnership: Absen and Polywall announced a partnership combining LED displays with video-wall software for NOCs/SOCs and public safety control rooms.

Agrifood Investment Push: FAO convened 70 representatives in Latin America and the Caribbean to map how to scale financing for agrifood systems, tackling the gap between climate risk and the limited, fragmented funding reaching producers. Trade & Logistics for Industry: Brazil’s Mercosur electronic commerce deal took effect Aug. 24, removing customs duties on cross-border e-transactions among Brazil, Argentina, Paraguay and Uruguay and adding rules on data protection and e-signatures—good news for cross-border digital commerce. Infrastructure via Private Capital: Argentina’s government highlighted progress on private-investment infrastructure plans, including road concessions and freight rail privatization, aiming to cut logistics costs. Security & Regional Readiness: The U.S. Coast Guard wrapped up PANAMAX 2026 drills in Panama, while Paraguay hosted Fuerzas Comando 2026 with elite units and facility upgrades supported by the Massachusetts National Guard—signals of stronger regional operational capacity. Paraguay Exports & Industry Signals: Paraguay’s forest product exports reportedly topped US$60M in seven months, pointing to continued momentum in natural-resource manufacturing supply chains. Tech for Control Rooms: Absen and Polywall announced a partnership combining LED walls with video-wall software for NOCs/SOCs and public safety facilities, targeting 24/7 operational deployments.

Rally & Craft Industry: Paraguay’s WRC Rally of Paraguay 2026 unveiled its official trophy, “Caskuchi,” a hand-made clay piece blending the traditional kambuchi vessel with a rally helmet shape, fired in a tatakua oven by artisan Sandra Ortega’s family in Cordillera—an export-ready showcase of local materials and heritage. Security & Training Infrastructure: Paraguay hosted the 20th Fuerzas Comando 2026 (Aug. 24–28) with elite units from 17 countries, while the Massachusetts National Guard recently helped renovate training facilities in Paraguay’s Chaco—good news for regional readiness and engineering services. Industrial Tech Partnerships: Absen and Polywall announced a control-room visualization partnership combining LED walls with video-wall software for NOCs/SOCs and public safety, with deployments already in government and finance projects. Defense Procurement Watch: Reports say Paraguay is in talks with Taiwan to acquire jet aircraft including F-5s and AT-3s to rebuild its jet capability. Energy & Renewables: Solar project activity is accelerating, with Paraguay mentioned among countries advancing new solar deals and financing in August. Trade & Logistics Policy: Brazil’s Mercosur e-commerce agreement takes effect Aug. 24, removing customs duties on electronic transactions between Paraguay and other bloc members—supporting cross-border online sales.