Paraguay - Japan Trade 2024 Q3: Deficit Deepens Sharply

Key Market Takeaways: Paraguay - Japan Trade

The bilateral trade relationship between Paraguay and Japan deteriorated sharply in Q3 2024, with Paraguay's exports collapsing and its deficit widening.

• Deficit Deepens: Paraguay ran a 69.18M trade deficit (Imports: 74.12M > Exports: 4.94M), driven by plunging exports (-74.81% YoY) despite steady Japanese import growth (+26.95% YoY in July).
• Resource-for-Tech Trade: Paraguay - Japan trade statistics reveal a lopsided exchange—Paraguay supplies oil seeds (90.96% of exports) while Japan dominates with vehicle exports (67.93% of imports).
• Asymmetric Dependence: Japan holds the high-value position, leaving Paraguay vulnerable to commodity price swings and reliant on Japanese automotive imports.

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

Paraguay-Japan Trade Trend in Q3 2024

Paraguay Export Performance: Shipments to Japan

• Total Volume: Exports to Japan totaled 4.94M in Q3 2024.
• Growth Trend & Context:
  • YoY declines were severe: -74.81% in July, -87.19% in August, and -76.55% in September. No mitigating news context was provided.
• Key Volatility: August saw the lowest volume (833.28K, -65.04% MoM), while September rebounded sharply (106.87% MoM) but remained depressed YoY.

Paraguay Import Performance: Sourcing from Japan

• Total Volume: Imports from Japan reached 74.12M in Q3 2024.
• Growth Trend & Context:
  • Strong YoY growth in July (+26.95%) and August (+26.64%), but September slowed to +7.37%. No news explained the slowdown.
• Key Volatility: September imports dropped -20.96% MoM, marking the lowest monthly value (20.39M).

Paraguay - Japan Trade Balance & Market Dynamics

• Net Position: Paraguay ran a trade deficit of 69.18M (Imports: 74.12M > Exports: 4.94M).
• Relationship Status: Heavy reliance on Japanese imports, with exports to Japan collapsing YoY. The deficit widened sharply compared to historical trends.

Paraguay Import Trend from Japan 2024 Q3 (Source: yTrade)**

Paraguay Export Trend to Japan 2024 Q3 (Source: yTrade)**

Get Historical Paraguay Japan Trade Records

Paraguay-Japan Top Trading Products in Q3 2024

Paraguay Export Profile: What Does Paraguay Sell to Japan

• Top Commodity: HS Code 12 (Oil seeds and oleaginous fruits) dominates with 90.96% share.
• Demand Driver: Japan imports these for industrial processing, likely for edible oils or biofuels.
• Concentration: Extreme concentration—HS Code 12 accounts for over 90% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Japan

• Top Commodity: HS Code 87 (Vehicles) leads at 67.93% share.
• Dependency Nature: Critical technology dependency—Paraguay relies on Japan for automotive imports, likely passenger cars or machinery.

Paraguay - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay supplies raw materials (oil seeds) while Japan provides high-value manufactured goods (vehicles, machinery).
• Value Chain Position: Japan holds the higher value-add position, exporting complex products (vehicles, electronics) versus Paraguay’s commodity-driven exports.

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 faces significant headwinds in the near term, with Paraguay’s exports to Japan collapsing by over 70% YoY in Q3 2024. The extreme concentration in oil seeds (HS Code 12) leaves Paraguay vulnerable to demand shocks, while Japan’s slowing import growth in September signals potential softening in its automotive sector. Without structural shifts, the trade deficit—already at $69.18M—will likely widen further. However, Japan’s persistent demand for raw materials and Paraguay’s reliance on high-value tech imports suggest the complementary trade model will endure, albeit with tighter margins.

Strategic Moves

• Diversify Export Markets: Paraguayan exporters must reduce reliance on Japan by targeting Southeast Asia or the EU for oil seeds, mitigating single-market volatility.
• Lock In Supply Agreements: Japanese auto importers should secure long-term contracts with Paraguayan suppliers to stabilize raw material costs amid global commodity fluctuations.
• Invest in Value-Added Processing: Paraguay should prioritize domestic refining of oil seeds to capture higher margins, shifting from bulk commodity exports to semi-processed goods.

Frequently Asked Questions

How did Paraguay - Japan trade perform in 2024 Q3?

Paraguay's exports to Japan plummeted YoY (-74.81% in July, -87.19% in August, -76.55% in September), totaling 4.94M, while imports from Japan grew 26.95% YoY in July and 26.64% in August, reaching 74.12M.

What are the top exports from Paraguay to Japan?

HS Code 12 (Oil seeds and oleaginous fruits) dominates Paraguay's exports to Japan, accounting for 90.96% of total shipments, likely for edible oils or biofuels.

What does Paraguay import from Japan?

HS Code 87 (Vehicles) leads Paraguay's imports from Japan with a 67.93% share, reflecting a critical dependency on Japanese automotive technology.

What is the trade balance between Paraguay and Japan?

Paraguay recorded a trade deficit of 69.18M with Japan in Q3 2024 (Imports: 74.12M > Exports: 4.94M), widening sharply due to collapsing exports.