GENERAL INFORMATION. Area (km2) Population (2012) Ciudad del Este, Encarnación y Concepción. Other important cities

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1 Paraguay

2 GENERAL INFORMATION

3 GENERAL INFORMATION Area (km2) Oficial Languages Currency Spanish and Guarani Guaraní (Gs.) Population (2012) GDP in US Millions Capital Other important cities US$ 25,5 mil millions Asunción Ciudad del Este, Encarnación y Concepción Employement Force Population growth 1,69 % Unemployement 4,9% of EF Inflation 4 %

4 Ecuador Colombia Perú Venezuela Bolivia Guayana Surinam Paraguay, located in the Guayana Francesa heart of South America. Is the most financially stable country in the region, with Brasil lower inflation rates and lower devaluation of its currency. Chile Argentina Uruguay International Reserves (JUN 2013) US$ milons External Public Debt (JUN 2013) US$ milons

5 A great freshwater reservoir Average Temperature: 24 C / 75º F Annual rain average: mm. Paraguay river Paraguay is located in the center of the 5th. largest freshwater reservoir: The Guarani Basin. Pilcomayo river Paraná river

6 REGIONAL LOGISTICS

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8 WATERWAY The Paraguay-Paraná waterway, connects five countries with the Atlantic Ocean, over a distance of 3442 km. Between 1988 and 2012, the transportation of goods grew from 700 thousand to over 20 million tons a year. Paraguay's main ports are: Asuncion, Villeta, San Antonio and Encarnación. From a total of 1752 barges that have permits to navigate the waterway, 1355 do it so under Paraguayan flag. This potential led to international companies to invest in the shipbuilding sector in Paraguay. An example is the TSUNEISHI PARAGUAY SA, which plans to build the largest barge shipyard in Latin America.

9 ENERGY

10 Hidroelectric Power Clean and Sustainable MWh Production Surplus Demand ITAIPU DAM NOMINAL INSTALLED CAPACITY: NUMBER OF TURBINES: INSTALLED CAPACITY: MW 20 (10 PY/10 BR) GWh/YEAR YACYRETA DAM NOMINAL INSTALLED CAPACITY: NUMBER OF TURBINES: INSTALLED CAPACITY: MW 20 (10 PY/10 AR) GWh/AÑO ACARAY DAM NOMINAL INSTALLED CAPACITY: 252 MW GENERATION: 950 GWh/YEAR

11 COMMERCE

12 Competitive Advantages to Export Starting in 2014, Paraguay will be the only country in MERCOSUR with preferential access to the European Union. Tariff liberalization for 9,749 products Potential for integration as manufacturer and exporter of Paraguayan goods. Direct access to a market of 500 million people. Some examples Products General tariff Tariff for Paraguay Origin requirements Vinegar Gherkin 17,6% 0% Manufactured in Paraguay (local or imported inputs) Crude Soybean Oil 6,4% 0% Elaborated in Paraguay(soja importada o local) Canned Palm Hearts 10,0% 0% Processed in Paraguay (local or imported inputs) Plywood 7,0% 0% Blouses for ladies 12,0% 0% Manufactured in Paraguay (local or imported laminated) Confection, with fabrics imported with a value of max. 40 % Steel Pipes 3,7% 0% With imported foreign values of max. 35%

13 According to official estimates by the International Monetary Fund (IMF), Paraguayan growth projection for 2013, is of 13%. Unofficial figures suggests that this index could climb to even 14%. The IMF estimates that Paraguayan GDP for 2014 will grow of 4.6% Paraguay is thus located at third place among countries with the largest projected growth. GDP % variation Country Mongolia 12,7 15,7 Iraq 10,2 14,7 Paraguay -1,5 13 China 7,8 8,2 India 4,5 5,9 Brasil 1,0 3,5 Mexico 3,8 3,5 Sudáfrica 2,3 2,8 Estados Unidos 2,3 2,0 Canadá 2,0 1,8 Japón 2,0 1,2 Alemania 0,9 0,6 GDP COMPOSITION Agriculture 22,3 % Industry 18,1 % Services 59,6 %

14 YEAR 2012 Exports Imports MERCOSUR PACIFIC ALIANCE EU REST OF THE WORLD TOTAL YEAR 2013* Exports Imports MERCOSUR PACIFIC ALIANCE EU REST OF THE WORLD TOTAL * Jan-Jun 13

15 BUSSINESS CLIMATE

16 Economic Freedom Economic Freedom Index The Heritage Foundation COUNTRY RANKING Paraguay 77 Brazil 113 Argentina 138 Bolivia 147 Ecuador 158 Venezuela 175

17 Taxes Paraguay offers the Most Competitive Tax Structure in the Region TAX PARAGUAY ARGENTINA URUGUAY BRAZIL CHILE Corporate Income Tax (*) 10% 35% 25% 34% 17% Personal Income Tax 10% 35% 25% 27,5% 40% Value Added Tax (VAT) 10% 21% 23% 25% 19% *Obs: if incomes are remitted internationally it may be up to 27.5%

18 Production Incentives Convention on the Settlement of Investment Disputes between States (CIADI)

19 Rules of Origin - MERCOSUR Necessary regional content in %(MERCOSUR) Paraguay enjoys special treatment in terms of rules of origin for products manufactured until It is easier to acquire origin in Paraguay than in Mercosur.

20 INVESTMENT OPPORTUNITIES

21 MINING The potential of the mining and hydrocarbons industry in Paraguay has recently taken great visibility in the region. This activity is regulated in the Act: 3.180/2007. The following areas have been explored: North (Apa River): Total area 600,000 hectares (approx.) Geochemical studies detected the presence of the following minerals: copper, lead, zinc, gold, silver, cobalt, nickel, chromium, iron, among others. South (Tebicuary River): Total area 300,000 hectares (approx.) Geochemical studies detected the presence of the following minerals: lead, zinc, gold, cobalt, nickel, chromium, iron, uranium, among others.

22 INFRASTRUCTURE Road Infrastructure Total road infrastructure of Paraguay: Total paved roads: km 8,924 km (27.7% approx.) Main Projects: Improvement of National Roads 1,2,6 and 7 Second bridge between Paraguay and Brazil over the Parana River Improvement of the Bioceanic Corridor - Capricorn Hub Revitalization of railways Asuncion-Encarnacion

23 POTENCIAL SECTORS Meat and Leather Tourism Biofuels Forest Products Cotton, Textile & Apparel Information Technology Energy Call Center Metallurgic Fruits and Vegetables Stevia Oils

24 SOME ADDITIONAL FACTS 1st. exporter of Electricity in the world. 1st. exporter of Organic Sugar in the world. 2nd. largest producer and exporter of Stevia in the world. 2nd. largest producer of Tung in the world. 4th. largest exporter of Soybean in the world. 4th. largest exporter of vegetal charcoal. 4th. largest exporter of starch of yuca. 4th. largest exporter of Soybean Oil in the world. 6th. largest producer of Soybean in the world. 8th. largest exporter of meat in the world.* * Foreign Agricultural Service/USDA Office of Global Analysis

25 Why invest (& live) in Paraguay? 1. Plenty of natural resources 2. Abundant electrical energy, environmentally clean and renewable. 3. Mainly young population. 4. Stable macroeconomy. Fiscal policy with the lowest tax burden in the region. 5. Benefits for foreign and domestic investment. 6. Quick return on investment. 7. It is among the world's top exporters of soybeans and beef, with high productivity and expansion capacity. 8. Good levels of quality of life and safety.

26 A World Class food producer, open and connected to the world, with high rates of development, rule of law and public safety, environmentally sustainable, with women inclusion and young entrepreneurship, and a Government that promotes equity, solidarity, transparency and zero tolerance to corruption

27 THANK YOU