Paraguay - Chile Trade 2023 Q3: Surplus & Volatility

Key Market Takeaways: Paraguay - Chile Trade

The bilateral trade relationship between Paraguay and Chile shows growth with high volatility in Q3 2023.

• Economic Pulse: Paraguay holds a $279.59M trade surplus, exporting $312.44M (mostly agricultural goods) while importing $32.85M (primarily pharmaceuticals and machinery).
• Exchange Structure: Paraguay - Chile trade statistics reveal a resource-for-tech dynamic—Paraguay supplies meat and grains (91% of exports), while Chile delivers higher-value pharmaceuticals and industrial inputs.
• Strategic Interdependence: The partnership is highly complementary, with Paraguay’s commodity exports balancing Chile’s processed goods, though uneven demand spikes create short-term volatility.

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

Paraguay-Chile Trade Trend in Q3 2023

Paraguay Export Performance: Shipments to Chile

• Total Volume: $312.44M in Q3 2023.
• Growth Trend & Context:
  • Mixed YoY performance: July (+19.4%) and August (+24.1%) growth offset by September’s sharp decline (-29.86%).
  • No specific trade news to contextualize trends.
• Key Volatility: August saw a 66.62% MoM surge, followed by a -46.18% collapse in September.

Paraguay Import Performance: Sourcing from Chile

• Total Volume: $32.85M in Q3 2023.
• Growth Trend & Context:
  • Volatile YoY shifts: September imports spiked 23.02% YoY, but August dropped -14.75%.
• Key Volatility: September was the peak month (13.73% MoM growth), while August recorded a -3.8% dip.

Paraguay - Chile Trade Balance & Market Dynamics

• Net Position: Paraguay holds a trade surplus of $279.59M (Exports: $312.44M > Imports: $32.85M).
• Relationship Status: Strong net exporter role, with exports nearly 10x imports. Volatility in both flows suggests uneven demand or supply chain adjustments.

Paraguay Import Trend from Chile 2023 Q3 (Source: yTrade)**

Paraguay Export Trend to Chile 2023 Q3 (Source: yTrade)**

Get Historical Paraguay Chile Trade Records

Paraguay-Chile Top Trading Products in Q3 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 46.78% of total exports to Chile.
• Demand Driver: Chile likely imports these for consumer market needs, given the high share of food products (HS 02, 10, 23).
• Concentration: Trade is highly concentrated, with the top 3 categories (HS 02, 10, 23) making up 91.27% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Chile

• Top Commodity: Rank #1 import is HS Code 30 (Pharmaceutical products), representing 16.78% of total imports from Chile.
• Dependency Nature: Imports suggest critical technology dependency (pharmaceuticals, machinery) and industrial inputs (iron/steel, plastics).

Paraguay - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw agricultural goods (meat, grains) while importing higher-value pharmaceuticals and machinery.
• Value Chain Position: Chile holds the higher value-add position, with exports skewed toward processed goods (pharmaceuticals, steel) versus Paraguay’s commodity-heavy exports.

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 Q4 2023, though volatility in meat and grain exports (HS 02, 10, 23) may persist due to uneven demand shifts. Chile’s reliance on Paraguayan agricultural inputs will likely sustain the resource-for-tech exchange, but exporters should brace for potential supply chain disruptions. The pharmaceutical and machinery import pipeline from Chile will remain critical, requiring proactive inventory planning. Long-term, Paraguay must diversify beyond raw commodities to capture higher value in this trade relationship.

Strategic Moves

• Lock in Agri-Export Contracts: Paraguayan meat and grain suppliers should secure multi-quarter contracts with Chilean buyers to stabilize revenue amid fluctuating monthly demand.
• Diversify Import Sources: Reduce dependency on Chilean pharmaceuticals (HS 30) by exploring alternative suppliers in Brazil or Argentina to mitigate price volatility.
• Invest in Value-Add Processing: Paraguayan producers must upgrade meat and grain processing capabilities to export higher-margin products (e.g., pre-cooked meats, fortified flours) and counter Chile’s value-chain dominance.

Frequently Asked Questions

How did Paraguay - Chile trade perform in 2023 Q3?

Paraguay's exports to Chile totaled $312.44M in Q3 2023, with mixed YoY growth (July +19.4%, August +24.1%, September -29.86%). Imports from Chile reached $32.85M, showing volatile YoY shifts.

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 46.78% of total shipments. Other key exports include grains and food products (HS Codes 10 and 23).

What does Paraguay import from Chile?

Pharmaceutical products (HS Code 30) were Paraguay's top import from Chile, representing 16.78% of total imports. Other critical imports include machinery and industrial inputs like iron/steel and plastics.

What is the trade balance between Paraguay and Chile?

Paraguay holds a trade surplus of $279.59M with Chile, as exports ($312.44M) far exceed imports ($32.85M). The surplus reflects Paraguay's strong net exporter role in the bilateral relationship.