Paraguay
GENERAL INFORMATION
GENERAL INFORMATION Area (km2) 406.752 Oficial Languages Currency Spanish and Guarani Guaraní (Gs.) Population 6.672.631 (2012) GDP in US Millions Capital Other important cities US$ 25,5 mil millions Asunción Ciudad del Este, Encarnación y Concepción Employement Force 3.412.443 Population growth 1,69 % Unemployement 4,9% of EF Inflation 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$ 5.758 milons External Public Debt (JUN 2013) US$ 2.623 milons
A great freshwater reservoir Average Temperature: 24 C / 75º F Annual rain average: 1.200 mm. Paraguay river Paraguay is located in the center of the 5th. largest freshwater reservoir: The Guarani Basin. Pilcomayo river Paraná river
REGIONAL LOGISTICS
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.
ENERGY
Hidroelectric Power Clean and Sustainable MWh 2000 2005 2010 2015 2020 2025 Production 7410 7410 8410 9002 9152 10592 Surplus 6290 6056 6578 6621 6054 6563 Demand 1120 1354 1832 2381 3098 4029 ITAIPU DAM NOMINAL INSTALLED CAPACITY: NUMBER OF TURBINES: INSTALLED CAPACITY: 140.000 MW 20 (10 PY/10 BR) 675.000 GWh/YEAR YACYRETA DAM NOMINAL INSTALLED CAPACITY: NUMBER OF TURBINES: INSTALLED CAPACITY: 31000 MW 20 (10 PY/10 AR) 210.000 GWh/AÑO ACARAY DAM NOMINAL INSTALLED CAPACITY: 252 MW GENERATION: 950 GWh/YEAR
COMMERCE
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%
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 2012 2013 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 %
YEAR 2012 Exports Imports MERCOSUR 1.223.610.863 4.371.786.825 PACIFIC ALIANCE 535.960.201 320.093.231 EU 1.186.922.481 692.089.833 REST OF THE WORLD 2.025.833.147 5.305.627.894 TOTAL 4.972.326.692 10.689.597.783 YEAR 2013* Exports Imports MERCOSUR 676.440.477 978.709.122 PACIFIC ALIANCE 385.602.918 825.916 EU 941.004.557 58.075.130 REST OF THE WORLD 1.400.310.481 4.544.468.409 TOTAL 3.403.358.433 5.582.078.577 * Jan-Jun 13
BUSSINESS CLIMATE
Economic Freedom Economic Freedom Index The Heritage Foundation COUNTRY RANKING Paraguay 77 Brazil 113 Argentina 138 Bolivia 147 Ecuador 158 Venezuela 175
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%
Production Incentives Convention on the Settlement of Investment Disputes between States (CIADI)
Rules of Origin - MERCOSUR Necessary regional content in %(MERCOSUR) Paraguay enjoys special treatment in terms of rules of origin for products manufactured until 2022. It is easier to acquire origin in Paraguay than in Mercosur.
INVESTMENT OPPORTUNITIES
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.
INFRASTRUCTURE Road Infrastructure Total road infrastructure of Paraguay: Total paved roads: 32.234 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
POTENCIAL SECTORS Meat and Leather Tourism Biofuels Forest Products Cotton, Textile & Apparel Information Technology Energy Call Center Metallurgic Fruits and Vegetables Stevia Oils
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
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.
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
THANK YOU