Paraguay - Japan Trade 2023 Q2: Deficit Widens on Tech Imports

Key Market Takeaways: Paraguay - Japan Trade

The bilateral trade relationship between Paraguay and Japan shows volatile export growth against steady import demand in Q2 2023.

• Deficit Widens on Tech Imports: Paraguay’s $61.41M trade deficit reflects heavy reliance on Japanese vehicles (58.94% of imports), while exports ($10.40M) remain concentrated in unprocessed oilseeds (78.28% share).
• Resource-for-Tech Exchange: Bilateral trade data reveals a lopsided complementarity—Paraguay supplies agricultural commodities (HS Code 12), Japan dominates with high-value automotive goods (HS Code 87).
• Asymmetrical Dependency: Japan holds structural leverage as a technology supplier, while Paraguay’s export recovery (despite YoY surges) hasn’t rebalanced the relationship.

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

Paraguay-Japan Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Japan

• Total Volume: $10.40M in Q2 2023.
• Growth Trend & Context:
  • Exports surged YoY, with May (+103.93%) and June (+85.33%) showing explosive growth. Base effects likely contributed, given the -28.38% YoY drop in April.
  • No specific trade news to explain the rebound.
• Key Volatility: April saw a 341.64% MoM spike, though from a low base ($1.82M). Growth moderated in subsequent months but remained robust (50.85% MoM in June).

Paraguay Import Performance: Sourcing from Japan

• Total Volume: $71.81M in Q2 2023.
• Growth Trend & Context:
  • Steady YoY growth (6.14%–8.65%) across all months, suggesting consistent demand for Japanese imports.
• Key Volatility: May recorded the highest value ($24.67M) and MoM growth (+9.66%), while June saw a marginal dip (-0.13% MoM).

Paraguay - Japan Trade Balance & Market Dynamics

• Net Position: Trade deficit of $61.41M (Imports of $71.81M vs. Exports of $10.40M).
• Relationship Status: Paraguay remains heavily dependent on Japanese imports, with exports growing but not yet offsetting the imbalance. The deficit widened YoY due to import growth outpacing export recovery.

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

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

Get Historical Paraguay Japan Trade Records

Paraguay-Japan Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Japan

• Top Commodity: Rank #1 export is HS Code 12 (Oil seeds, grains, seeds, fruits) at 78.28% of total exports to Japan.
• Demand Driver: Japan uses these for industrial processing, likely as inputs for food production or biofuels.
• Concentration: Trade is highly concentrated, with HS Code 12 dominating at over 75% share.

Paraguay Import Profile: What Does Paraguay Buy from Japan

• Top Commodity: Rank #1 import is HS Code 87 (Vehicles, parts) at 58.94% of total imports from Japan.
• Dependency Nature: Critical technology dependency, as Japan supplies advanced automotive machinery and components.

Paraguay - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw agricultural materials (HS Code 12) and imports high-value manufactured goods (HS Code 87).
• Value Chain Position: Japan holds the higher value-add position, supplying complex machinery and vehicles, while Paraguay provides low-processed 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 poised for continued growth in the near term, driven by Japan’s steady demand for Paraguayan agricultural inputs (HS Code 12) and Paraguay’s reliance on Japanese automotive technology (HS Code 87). However, the widening trade deficit signals an urgent need for Paraguay to diversify its export basket beyond raw commodities. While export volatility may persist due to base effects, import growth is expected to remain stable, reinforcing Japan’s position as a critical supplier of high-value machinery. Without structural shifts, the trade imbalance will likely deepen, exposing Paraguay to external supply chain risks.

Strategic Moves

• Expand Export Diversification: Paraguayan exporters must aggressively target new sectors—such as processed foods or renewable energy inputs—to reduce overreliance on oilseeds and capture higher margins in Japanese markets.
• Secure Long-Term Supply Agreements: Importers of Japanese vehicles and parts should lock in contracts now to mitigate potential cost fluctuations, given Japan’s dominance in advanced manufacturing.
• Invest in Value-Add Processing: Paraguay’s government and private sector must prioritize local industrial upgrades to transform raw exports (e.g., soybean processing) and reclaim value from the supply chain.

Traders who act on these trends will capitalize on growth while hedging against dependency risks.

Frequently Asked Questions

How did Paraguay - Japan trade perform in 2023 Q2?

Paraguay's exports to Japan surged YoY (May: +103.93%, June: +85.33%), totaling $10.40M, while imports grew steadily (6.14%–8.65% YoY) to $71.81M.

What are the top exports from Paraguay to Japan?

Oil seeds, grains, seeds, and fruits (HS Code 12) dominated, accounting for 78.28% of Paraguay’s exports to Japan.

What does Paraguay import from Japan?

Vehicles and parts (HS Code 87) were the top import, making up 58.94% of Paraguay’s purchases from Japan.

What is the trade balance between Paraguay and Japan?

Paraguay had a trade deficit of $61.41M, with imports ($71.81M) far exceeding exports ($10.40M). The gap widened YoY as import growth outpaced exports.