Paraguay - Japan Trade 2023 Whole Year: Heavy Deficit & Tech Imports

Key Market Takeaways: Paraguay - Japan Trade

The bilateral trade relationship between Paraguay and Japan is marked by volatility and a heavy deficit for Paraguay in 2023.

• Economic Pulse: Paraguay ran a $218.09M trade deficit with Japan, with imports ($268.04M) exceeding exports ($49.95M) by 5.4x. Export growth showed extreme swings, while imports fluctuated moderately.
• Exchange Structure: Paraguay-Japan trade statistics reveal a resource-for-tech dynamic—Paraguay supplies agricultural commodities (44% oilseeds/grains) while Japan dominates with vehicles (60.76% of imports) and machinery.
• Strategic Interdependence: Highly complementary but imbalanced—Paraguay depends on Japan for critical industrial inputs, while its exports remain niche and volatile.

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

Paraguay-Japan Trade Trend in Whole Year 2023

Paraguay Export Performance: Shipments to Japan

• Total Volume: $49.95M in 2023.
• Growth Trend & Context:
  • Extreme volatility in YoY growth, ranging from -40.67% (Jan) to +2,122.14% (Oct).
  • No specific trade news to explain the erratic swings.
• Key Volatility:
  • October saw a 69.56% MoM surge, peaking at $12.46M (highest monthly export).
  • December dropped 51.61% MoM to $752.59K (lowest since February).

Paraguay Import Performance: Sourcing from Japan

• Total Volume: $268.04M in 2023.
• Growth Trend & Context:
  • Mixed YoY performance: 8.65% growth in May, but -6.3% contraction in March.
  • No news to contextualize fluctuations.
• Key Volatility:
  • October imports spiked 44.36% MoM to $27.42M (highest monthly value).
  • September hit a low of $18.99M (-6.77% MoM).

Paraguay - Japan Trade Balance & Market Dynamics

• Net Position: Trade deficit of $218.09M (Imports exceeded exports by 5.4x).
• Relationship Status: Heavy reliance on Japanese imports, with exports remaining niche and volatile. No sustained surplus months observed.

Paraguay Import Trend from Japan 2023 Whole Year (Source: yTrade)**

Paraguay Export Trend to Japan 2023 Whole Year (Source: yTrade)**

Get Historical Paraguay Japan Trade Records

Paraguay-Japan Top Trading Products in Whole Year 2023

Paraguay Export Profile: What Does Paraguay Sell to Japan

• Top Commodity: HS Code 12 (Oilseeds, grains, seeds, fruits) dominates at 44.03% of exports.
• Demand Driver: Japan imports these agricultural products for industrial processing (e.g., food manufacturing, biofuels).
• Concentration: High—top 3 categories (HS 12, 10, 23) account for 98.62% of exports, indicating heavy reliance on agricultural commodities.

Paraguay Import Profile: What Does Paraguay Buy from Japan

• Top Commodity: HS Code 87 (Vehicles) makes up 60.76% of imports, reflecting Japan’s export strength in automotive manufacturing.
• Dependency Nature: Critical technology dependency—Japan supplies high-value machinery (HS 84, 85) and vehicles, essential for Paraguay’s transport and industrial sectors.

Paraguay - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw agricultural goods (HS 10, 12) in exchange for Japan’s high-tech machinery and vehicles.
• Value Chain Position: Japan holds the higher value-add position, with complex exports (vehicles, electronics) versus Paraguay’s low-processed agricultural outputs.

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

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

Check Detailed Paraguay-Japan Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast for Paraguay-Japan Trade

The Paraguay-Japan trade relationship is expected to remain volatile but structurally stable in the near term. Given Japan’s persistent demand for Paraguayan agricultural commodities (HS 12, 10, 23) and Paraguay’s heavy reliance on Japanese high-tech imports (HS 87, 84, 85), the resource-for-tech complementarity will likely sustain trade flows. However, the erratic export growth and widening trade deficit ($218.09M in 2023) signal vulnerability to price swings and supply chain disruptions. Without diversification, Paraguay’s export earnings will remain exposed to Japan’s industrial demand cycles.

Strategic Moves for Traders & Policymakers

• Lock in Long-Term Agri-Contracts: Paraguayan exporters should secure multi-year deals with Japanese buyers to stabilize revenue streams amid volatile monthly shipments. Focus on HS 12 (oilseeds) and HS 10 (cereals), which dominate exports.
• Diversify Import Sources for Critical Tech: Paraguay must reduce dependency on Japanese vehicles (HS 87) by exploring competitive suppliers in South Korea or the EU to mitigate trade deficit risks.
• Invest in Agro-Processing for Higher Margins: Instead of exporting raw commodities, Paraguay should attract Japanese FDI to add value locally (e.g., soybean oil refining) and capture more of the supply chain profit.

Bottom Line: Stability hinges on Paraguay upgrading its export profile while Japan remains a irreplaceable tech supplier—act now to rebalance the asymmetry.

Frequently Asked Questions

How did Paraguay - Japan trade perform in 2023 Whole Year?

Paraguay exported $49.95M to Japan, with extreme volatility in growth, while imports from Japan totaled $268.04M, showing mixed YoY performance.

What are the top exports from Paraguay to Japan?

Paraguay's top exports to Japan are oilseeds, grains, seeds, and fruits (HS Code 12), accounting for 44.03% of total exports.

What does Paraguay import from Japan?

Paraguay primarily imports vehicles (HS Code 87) from Japan, making up 60.76% of total imports, along with high-value machinery (HS 84, 85).

What is the trade balance between Paraguay and Japan?

Paraguay recorded a trade deficit of $218.09M with Japan, as imports exceeded exports by 5.4x in 2023.