Paraguay - Japan Trade 2023 Q1: Volatile Deficit

Key Market Takeaways: Paraguay - Japan Trade

The bilateral trade relationship between Paraguay and Japan is marked by extreme volatility and a heavy trade deficit in Q1 2023.

• Economic Pulse: Paraguay runs a $61.01M trade deficit with Japan, importing $62.47M (mostly vehicles/parts) while exporting just $1.46M (primarily agricultural raw materials).
• Exchange Structure: Paraguay-Japan trade statistics reveal a resource-for-tech model—Paraguay supplies oilseeds/grains (68.6% of exports), while Japan dominates with high-value automotive and machinery imports (59.1% share).
• Strategic Interdependence: Highly complementary but imbalanced: Japan holds the value-add advantage, while Paraguay remains a niche commodity supplier.

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

Paraguay-Japan Trade Trend in Q1 2023

Paraguay Export Performance: Shipments to Japan

• Total Volume: $1.46M in Q1 2023.
• Growth Trend & Context:
  • YoY swings were extreme: -40.67% in January, +117.02% in February, and -4.67% in March. No clear directional trend.
• Key Volatility: February saw a 277.85% MoM surge, while January and March had sharp declines (-63.89% and -50.07% MoM, respectively).

Paraguay Import Performance: Sourcing from Japan

• Total Volume: $62.47M in Q1 2023.
• Growth Trend & Context:
  • YoY growth was mixed: +26.16% in January, -4.57% in February, and -6.3% in March.
• Key Volatility: March had the highest volume ($22.72M), while February dropped to $18.72M (-10.99% MoM).

Paraguay - Japan Trade Balance & Market Dynamics

• Net Position: Trade Deficit of $61.01M (Imports $62.47M vs. Exports $1.46M).
• Relationship Status: Paraguay is heavily dependent on imports from Japan, with exports negligible in comparison.

Paraguay Import Trend from Japan 2023 Q1 (Source: yTrade)**

Paraguay Export Trend to Japan 2023 Q1 (Source: yTrade)**

Get Historical Paraguay Japan Trade Records

Paraguay-Japan Top Trading Products in Q1 2023

Paraguay Export Profile: What Does Paraguay Sell to Japan

• Top Commodity: Rank #1 export is HS Code 12 (likely oilseeds, grains, or similar agricultural products), accounting for 68.58% of total exports to Japan.
• Demand Driver: Japan imports these raw materials for industrial processing, likely for food production or biofuel.
• Concentration: Trade is highly concentrated, with the top commodity dominating at nearly 70% share.

Paraguay Import Profile: What Does Paraguay Buy from Japan

• Top Commodity: Rank #1 import is HS Code 87 (vehicles and parts), making up 59.14% of total imports from Japan.
• Dependency Nature: Paraguay relies on Japan for critical technology, particularly in automotive machinery and parts.

Paraguay - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports agricultural raw materials (HS 12, 07) to Japan, while importing high-value machinery and vehicles (HS 87, 85, 84).
• Value Chain Position: Japan holds the higher value-add position, supplying advanced manufactured goods, while Paraguay provides primary commodities.

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

The Paraguay-Japan trade relationship is expected to remain volatile in the near term, with Paraguay’s exports facing erratic demand swings while imports from Japan stabilize at elevated levels. Given Japan’s reliance on Paraguayan agricultural commodities (HS 12) and Paraguay’s structural dependence on Japanese automotive and machinery imports (HS 87), the trade deficit will likely persist. However, if Paraguay can diversify its export basket beyond raw materials, it may reduce exposure to price fluctuations. Traders should brace for continued YoY unpredictability, particularly in primary goods shipments.

Strategic Moves

• Lock in Long-Term Supply Contracts: Paraguayan exporters of oilseeds and grains should secure multi-year agreements with Japanese buyers to stabilize revenue streams amid volatile monthly swings.
• Diversify Import Sources: Paraguayan importers of vehicles and machinery should explore alternative suppliers (e.g., South Korea or China) to mitigate overreliance on Japan and improve bargaining power.
• Invest in Value-Added Processing: Paraguay must upgrade its agro-industrial capacity to export semi-processed goods (e.g., refined oils) instead of raw commodities, capturing more value in the supply chain.

Frequently Asked Questions

How did Paraguay - Japan trade perform in 2023 Q1?

Paraguay's exports to Japan totaled $1.46M, with extreme YoY swings (-40.67% to +117.02%). Imports from Japan reached $62.47M, showing mixed growth (+26.16% to -6.3%).

What are the top exports from Paraguay to Japan?

Paraguay's top export to Japan is HS Code 12 (oilseeds, grains, or similar agricultural products), accounting for 68.58% of total exports.

What does Paraguay import from Japan?

Paraguay primarily imports HS Code 87 (vehicles and parts) from Japan, making up 59.14% of total imports.

What is the trade balance between Paraguay and Japan?

Paraguay recorded a trade deficit of $61.01M in Q1 2023, with imports ($62.47M) far exceeding exports ($1.46M).