Paraguay - Chile Trade 2023 Q2: Meat Fuels $268M Surplus

Key Market Takeaways: Paraguay - Chile Trade

The bilateral trade relationship between Paraguay and Chile shows growth with notable volatility in Q2 2023.

• Paraguay dominates with a $267.64M trade surplus, driven by $297.97M in exports—nearly 10x its imports ($30.33M). Demand for Paraguayan goods remains resilient despite import swings.
• Paraguay - Chile trade statistics reveal a resource-for-tech exchange: Meat (64% of exports) flows to Chile, while pharmaceuticals (21% of imports) highlight Paraguay’s reliance on higher-value Chilean goods.
• Complementary but asymmetric: Paraguay’s agricultural exports anchor the relationship, while Chile holds the value-add edge in advanced sectors like healthcare.

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

Paraguay-Chile Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Chile

• Total Volume: $297.97M in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY performance: April (-12.74%) contracted, but May (+18.87%) and June (+19.21%) rebounded sharply.
  • No specific trade news to explain fluctuations.
• Key Volatility: May saw a 55% MoM surge, while June corrected with a -15.77% drop.

Paraguay Import Performance: Sourcing from Chile

• Total Volume: $30.33M in Q2 2023.
• Growth Trend & Context:
  • Volatile YoY: April (+20.79%) growth reversed to -27.19% in June.
• Key Volatility: June imports plummeted -31.38% MoM, marking the lowest monthly value ($7.97M).

Paraguay - Chile Trade Balance & Market Dynamics

• Net Position: Trade surplus of $267.64M (Exports $297.97M > Imports $30.33M).
• Relationship Status: Paraguay dominates as a net exporter, with exports nearly 10x imports. Demand from Chile appears resilient despite import volatility.

Paraguay Import Trend from Chile 2023 Q2 (Source: yTrade)**

Paraguay Export Trend to Chile 2023 Q2 (Source: yTrade)**

Get Historical Paraguay Chile Trade Records

Paraguay-Chile Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Chile

• Top Commodity: Rank #1 export is HS Code 02 (Meat and edible meat offal), accounting for 63.75% of total exports to Chile.
• Demand Driver: Chile likely imports these for consumer market needs, indicating strong demand for Paraguayan meat products.
• Concentration: Trade is highly concentrated, with the top commodity (HS 02) dominating at nearly 64% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from Chile

• Top Commodity: Rank #1 import is HS Code 30 (Pharmaceutical products), making up 20.58% of total imports from Chile.
• Dependency Nature: Imports suggest critical technology dependency, particularly in pharmaceuticals, which are essential for healthcare.

Paraguay - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw materials (meat) to Chile, while importing higher-value goods (pharmaceuticals).
• Value Chain Position: Chile holds the higher value-add position, as its exports (e.g., pharmaceuticals) are more technologically advanced than Paraguay's primary exports (agricultural products).

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

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

Check Detailed Paraguay-Chile Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Paraguay’s trade surplus with Chile is expected to hold steady in Q3 2023, driven by resilient demand for meat exports (HS 02) despite import volatility. However, the sharp MoM corrections in June signal potential supply chain or pricing risks, requiring exporters to monitor Chilean consumer trends closely. The resource-for-tech exchange model will likely persist, but Paraguay must address its over-reliance on a single export commodity to mitigate future demand shocks.

Strategic Moves

• Diversify Export Portfolio: Paraguayan exporters should reduce dependence on meat (HS 02) by expanding into secondary commodities like soybeans or processed foods to capture broader Chilean demand.
• Lock in Pharmaceutical Supply: Importers must secure long-term contracts for critical pharmaceuticals (HS 30) from Chile to hedge against price spikes and supply disruptions.
• Optimize Trade Logistics: Given the volatile monthly swings, traders should adopt agile inventory management and streamline customs processes to capitalize on rebound periods like May’s 55% export surge.

Frequently Asked Questions

How did Paraguay - Chile trade perform in 2023 Q2?

Paraguay's exports to Chile totaled $297.97M in Q2 2023, with mixed YoY growth—April declined (-12.74%), but May (+18.87%) and June (+19.21%) rebounded sharply. Imports from Chile were volatile, dropping -31.38% MoM in June.

What are the top exports from Paraguay to Chile?

Meat and edible meat offal (HS Code 02) dominated Paraguay's exports to Chile, accounting for 63.75% of total shipments, reflecting strong demand for Paraguayan meat products.

What does Paraguay import from Chile?

Pharmaceutical products (HS Code 30) were Paraguay's top import from Chile, making up 20.58% of total imports, highlighting a dependency on advanced healthcare goods.

What is the trade balance between Paraguay and Chile?

Paraguay recorded a trade surplus of $267.64M with Chile in Q2 2023, as exports ($297.97M) far exceeded imports ($30.33M), maintaining its dominance as a net exporter.