Paraguay - Japan Trade 2024 Q1: Volatile Deficit & Tech Imbalance

Key Market Takeaways: Paraguay - Japan Trade

The bilateral trade relationship between Paraguay and Japan is marked by extreme volatility and a heavy deficit for Paraguay in 2024 Q1.

• Economic Pulse: Paraguay ran a $70.59M trade deficit with Japan, driven by $73.93M in imports (mostly vehicles) versus just $3.34M in exports (oilseeds). YoY swings were erratic, including a 567% export spike in March.
• Exchange Structure: Paraguay-Japan trade statistics reveal a resource-for-tech imbalance—Paraguay supplies 95% oilseeds (HS 12), while Japan dominates with vehicles (HS 87, 66% share) and machinery.
• Strategic Interdependence: Highly complementary but unequal: Japan holds the high-value position, while Paraguay remains a niche raw material supplier.

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

Paraguay-Japan Trade Trend in Q1 2024

Paraguay Export Performance: Shipments to Japan

• Total Volume: Q1 exports to Japan totaled $3.34M.
• Growth Trend & Context:
  • YoY swings were extreme: +28.73% in January, -62.91% in February, then a staggering +566.96% in March. No news context to explain these shifts.
  • Key Volatility: March saw a 797.86% MoM surge, dwarfing earlier months.

Paraguay Import Performance: Sourcing from Japan

• Total Volume: Q1 imports from Japan reached $73.93M.
• Growth Trend & Context:
  • YoY growth was mixed: +21.72% (Jan), +40.81% (Feb), then -3.28% (Mar). No news drivers cited.
  • Key Volatility: March imports dropped 16.62% MoM, marking the lowest monthly value.

Paraguay - Japan Trade Balance & Market Dynamics

• Net Position: Paraguay ran a $70.59M trade deficit with Japan (Imports $73.93M > Exports $3.34M).
• Relationship Status: Heavy reliance on Japanese imports, with exports playing a marginal role.

Paraguay Import Trend from Japan 2024 Q1 (Source: yTrade)**

Paraguay Export Trend to Japan 2024 Q1 (Source: yTrade)**

Get Historical Paraguay Japan Trade Records

Paraguay-Japan Top Trading Products in Q1 2024

Paraguay Export Profile: What Does Paraguay Sell to Japan

• Top Commodity: Rank #1 export is HS Code 12 (Oilseeds and misc. grains) with 95.62% share.
• Demand Driver: Japan uses these for industrial processing (e.g., food production, biofuels).
• Concentration: Extreme dominance by a single category (>95% share).

Paraguay Import Profile: What Does Paraguay Buy from Japan

• Top Commodity: Rank #1 import is HS Code 87 (Vehicles) with 65.66% share.
• Dependency Nature: Critical technology dependency, as imports are dominated by high-value machinery and transport equipment.

Paraguay - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay supplies raw materials (oilseeds), Japan exports advanced manufactured goods (vehicles, machinery).
• Value Chain Position: Japan holds the higher value-add position, exporting complex products (HS 87, 85, 84) versus Paraguay’s low-processed commodities (HS 12).

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 volatility in Q2 2024, driven by Paraguay’s heavy reliance on Japanese high-tech imports and its narrow export base in oilseeds. While Japan’s demand for raw materials (HS 12) may sustain Paraguay’s exports, the extreme monthly swings suggest unstable pricing or supply chain disruptions. Meanwhile, Paraguay’s $70.59M trade deficit with Japan will likely persist unless export diversification or import substitution strategies are implemented. Traders should brace for erratic shipment volumes, particularly in oilseeds, and monitor Japan’s industrial demand signals closely.

Strategic Moves

• Diversify Export Basket: Paraguayan exporters must reduce dependence on HS 12 by exploring secondary commodities (e.g., meat, leather) to mitigate risk from oilseed price volatility.
• Lock In Vehicle Import Contracts: Importers should negotiate long-term agreements with Japanese automakers (HS 87) to hedge against sudden price hikes or supply shortages.
• Invest in Local Tech Capacity: Paraguay should prioritize partnerships with Japanese firms to develop domestic manufacturing capabilities, reducing reliance on high-value imports and narrowing the trade deficit.

Frequently Asked Questions

How did Paraguay - Japan trade perform in 2024 Q1?

Paraguay's exports to Japan totaled $3.34M with extreme YoY swings, while imports from Japan reached $73.93M, resulting in a $70.59M trade deficit.

What are the top exports from Paraguay to Japan?

Oilseeds and misc. grains (HS Code 12) dominate Paraguay's exports to Japan, accounting for 95.62% of total shipments.

What does Paraguay import from Japan?

Vehicles (HS Code 87) are the top import, making up 65.66% of Paraguay's purchases from Japan.

What is the trade balance between Paraguay and Japan?

Paraguay recorded a $70.59M trade deficit with Japan in Q1 2024, driven by heavy reliance on Japanese imports.