Argentina - Paraguay Trade 2024 Q1: Deficit & Growth

Key Market Takeaways: Argentina - Paraguay Trade

The bilateral trade relationship between Argentina and Paraguay reflects a growing but volatile dynamic in Q1 2024, marked by Argentina's heavy reliance on Paraguayan imports despite robust export growth.

• Economic Pulse: Argentina posted a $569.61M trade deficit with Paraguay, driven by $883.68M in imports (volatile YoY swings) against $314.07M in exports (steady 18–21% YoY growth).
• Exchange Structure: The trade hinges on resource-for-food complementarity—Argentina supplies mineral fuels (36.11% of exports) while Paraguay dominates with oilseeds and grains (84.49% of imports), per Argentina-Paraguay trade statistics.
• Strategic Interdependence: Highly asymmetric: Paraguay’s agricultural dominance meets Argentina’s energy exports, creating a lopsided but critical supply chain link.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Argentina-Paraguay Trade Trend in Q1 2024

Argentina Export Performance: Shipments to Paraguay

• Total Volume: $314.07M in Q1 2024.
• Growth Trend & Context:
  • YoY growth remained steady (~18–21%) across all months, signaling consistent demand.
• Key Volatility: March saw a 25.31% MoM surge, the highest quarterly jump.

Argentina Import Performance: Sourcing from Paraguay

• Total Volume: $883.68M in Q1 2024.
• Growth Trend & Context:
  • Volatile YoY trends: January (+70.37%) and February (+45.77%) growth collapsed to -44.42% in March.
• Key Volatility: February spiked 194.65% MoM, while January dropped -64.26% MoM.

Argentina - Paraguay Trade Balance & Market Dynamics

• Net Position: Trade deficit of $569.61M (Imports exceeded exports).
• Relationship Status: Argentina heavily reliant on Paraguayan imports, despite robust export growth. The March import contraction warrants monitoring for supply chain shifts.

Argentina Import Trend from Paraguay 2024 Q1 (Source: yTrade)**

Argentina Export Trend to Paraguay 2024 Q1 (Source: yTrade)**

Get Historical Argentina Paraguay Trade Records

Argentina-Paraguay Top Trading Products in Q1 2024

Argentina Export Profile: What Does Argentina Sell to Paraguay

• Top Commodity: Rank #1 export is HS Code 27 (Mineral fuels, oils) at 36.11% of total exports.
• Demand Driver: Paraguay likely uses these for energy and industrial processing, reflecting its reliance on imported fuels.
• Concentration: The top two exports (HS 27 and 99) account for 61.17%, indicating high trade concentration.

Argentina Import Profile: What Does Argentina Buy from Paraguay

• Top Commodity: Rank #1 import is HS Code 12 (Oilseeds, grains) at 84.49% of total imports.
• Dependency Nature: Argentina relies heavily on Paraguay for agricultural staples, suggesting food security dependency.

Argentina - Paraguay Trade Relationship Dynamics

• The Exchange Model: Resource-for-Food Complementarity—Argentina exports energy (HS 27) while importing agricultural goods (HS 12).
• Value Chain Position: Paraguay holds the edge in primary agricultural exports, while Argentina supplies higher-value processed fuels. Trade is lopsided, with Paraguay’s single commodity (HS 12) dominating imports.

Import Analysis by Product: Paraguay to Argentina (Source: yTrade)

Export Analysis by Product: Argentina to Paraguay (Source: yTrade)

Check Detailed Argentina-Paraguay Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Argentina’s trade with Paraguay is poised for continued growth in Q2 2024, driven by steady demand for mineral fuels (HS 27) and Paraguay’s reliance on Argentine energy exports. However, the sharp March contraction in Paraguayan agricultural imports (HS 12) signals potential volatility in Argentina’s food supply chain, requiring close monitoring. The trade deficit will likely persist unless Argentina diversifies its import sources or scales value-added exports. Traders should prepare for both opportunities in energy and risks in agricultural dependency.

Strategic Moves

• Lock in Fuel Export Contracts: Argentine energy exporters should secure long-term agreements with Paraguayan buyers to capitalize on stable demand and mitigate price fluctuations.
• Diversify Agricultural Imports: Reduce overreliance on Paraguayan oilseeds (HS 12) by exploring alternative suppliers in Brazil or Bolivia to stabilize food security costs.
• Expand Value-Added Exports: Argentine firms must target higher-value processed goods (e.g., refined fuels or manufactured products) to rebalance the lopsided trade structure and reduce the deficit.

Frequently Asked Questions

How did Argentina - Paraguay trade perform in 2024 Q1?

Argentina's exports to Paraguay grew steadily (18–21% YoY) to $314.07M, while imports from Paraguay were volatile, totaling $883.68M.

What are the top exports from Argentina to Paraguay?

The top exports are Mineral fuels, oils (HS Code 27) and other commodities, accounting for 61.17% of total exports.

What does Argentina import from Paraguay?

Argentina primarily imports Oilseeds, grains (HS Code 12), making up 84.49% of total imports from Paraguay.

What is the trade balance between Argentina and Paraguay?

Argentina recorded a trade deficit of $569.61M, with imports significantly exceeding exports in Q1 2024.