Paraguay - Mexico Trade 2023 Q2: Deficit & Resource Exchange

Key Market Takeaways: Paraguay - Mexico Trade

The bilateral trade relationship between Paraguay and Mexico shows signs of recovery amid volatility in 2023 Q2.

• Deficit-Driven Trade: Paraguay runs a $31.76M trade deficit with Mexico ($41.75M imports vs. $9.99M exports), though exports rebounded sharply after April’s 57% YoY drop.
• Resource-for-Tech Exchange: Paraguay - Mexico trade statistics reveal a lopsided structure: 80.61% of Paraguay’s exports are oilseeds, while 65.11% of imports are vehicles and machinery from Mexico.
• Asymmetric Complementarity: Mexico holds the high-value position in this partnership, with Paraguay reliant on raw material exports and critical tech imports.

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

Paraguay-Mexico Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Mexico

• Total Volume: $9.99M in Q2 2023.
• Growth Trend & Context:
  • YoY growth turned positive in May (+28.79%) and June (+6.47%), recovering from a steep -57.06% drop in April.
  • No specific trade news or policy shifts were reported to explain the rebound.
• Key Volatility: April saw a 192.32% MoM surge, likely due to base effects or seasonal restocking.

Paraguay Import Performance: Sourcing from Mexico

• Total Volume: $41.75M in Q2 2023.
• Growth Trend & Context:
  • YoY was volatile: -39.39% in April, +5.88% in May, then -4.35% in June, signaling uneven demand.
• Key Volatility: June recorded the highest monthly import value ($15.06M) with a 13.73% MoM jump, contrasting with April's -30.5% contraction.

Paraguay - Mexico Trade Balance & Market Dynamics

• Net Position: Trade deficit of $31.76M (Imports $41.75M > Exports $9.99M).
• Relationship Status: Paraguay remains heavily dependent on Mexican imports, with exports failing to offset the imbalance. The rebound in exports post-April warrants monitoring for sustainability.

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

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

Get Historical Paraguay Mexico Trade Records

Paraguay-Mexico Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Mexico

• Top Commodity: HS Code 12 (Oilseeds and misc. grains) dominates with 80.61% share.
• Demand Driver: Mexico uses these for industrial processing, likely in food or feed production.
• Concentration: Extreme reliance on a single category (80.61%), indicating minimal export diversification.

Paraguay Import Profile: What Does Paraguay Buy from Mexico

• Top Commodity: HS Code 87 (Vehicles) leads at 37.43% of imports.
• Dependency Nature: Critical technology dependency, as vehicles and machinery (HS 84-85) combined account for 65.11% of imports.

Paraguay - Mexico Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay supplies raw materials (oilseeds) while Mexico exports high-value manufactured goods (vehicles, machinery).
• Value Chain Position: Mexico holds the higher value-add position, with Paraguay’s exports concentrated in low-complexity agricultural commodities.

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

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

Check Detailed Paraguay-Mexico Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay-Mexico trade relationship is expected to stabilize in Q3 2023, with Paraguay’s export recovery likely to sustain modest growth (+5-10% YoY) as demand for oilseeds (HS 12) remains steady. However, the trade deficit will persist unless Paraguay diversifies its export basket or Mexico’s vehicle imports slow. Volatility in Mexican demand for Paraguayan goods—driven by industrial cycles—calls for cautious optimism. Traders should monitor Mexico’s manufacturing sector for early signals of import shifts.

Strategic Moves

• Lock in Oilseed Contracts: Paraguayan exporters must secure long-term agreements with Mexican buyers to stabilize revenue streams, given the sector’s 80.61% dominance and Mexico’s reliance on raw material inputs.
• Diversify Export Markets: Reduce dependency on HS 12 by targeting niche demand in Mexico for processed agricultural goods (e.g., edible oils) or textiles, leveraging Paraguay’s cost advantages.
• Optimize Vehicle Imports: Paraguayan importers should negotiate bulk purchase discounts for Mexican vehicles (HS 87) or explore alternative suppliers in Mercosur to mitigate price volatility.

Frequently Asked Questions

How did Paraguay - Mexico trade perform in 2023 Q2?

Paraguay's exports to Mexico totaled $9.99M in Q2 2023, with a rebound in May and June after a steep drop in April. Imports from Mexico reached $41.75M, showing volatile demand.

What are the top exports from Paraguay to Mexico?

Oilseeds and miscellaneous grains (HS Code 12) dominate Paraguay's exports to Mexico, accounting for 80.61% of total shipments.

What does Paraguay import from Mexico?

Vehicles (HS Code 87) are the top import, making up 37.43% of Paraguay's purchases from Mexico, followed by machinery (HS Codes 84-85).

What is the trade balance between Paraguay and Mexico?

Paraguay recorded a trade deficit of $31.76M with Mexico in Q2 2023, as imports ($41.75M) significantly outweighed exports ($9.99M).