Paraguay - Netherlands Trade 2023 Q2: Surplus & Volatility

Key Market Takeaways: Paraguay - Netherlands Trade

The bilateral trade relationship between Paraguay and Netherlands surged with explosive growth and volatility in Q2 2023.

• Economic Pulse: Paraguay posted a €41.82M trade surplus, with exports (€62.67M) tripling imports (€20.85M). Volatility spiked—exports grew 377.7% YoY in June, while imports rebounded 295.75% MoM.
• Exchange Structure: Paraguay - Netherlands trade statistics reveal a resource-for-tech model: agricultural byproducts (beverages, food residues) dominate exports (85.37% combined), while Netherlands supplies energy (43.11% mineral fuels) and machinery.
• Strategic Interdependence: Highly complementary but unequal—Netherlands captures higher value-add, while Paraguay relies on raw material exports.

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

Paraguay-Netherlands Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Netherlands

• Total Volume: €62.67M in Q2 2023.
• Growth Trend & Context:
  • Explosive YoY growth across all months (202.42% in Apr, 207.57% in May, 377.7% in Jun), signaling a structural demand shift.
• Key Volatility: May saw a 192.93% MoM surge, followed by a -35.71% correction in June.

Paraguay Import Performance: Sourcing from Netherlands

• Total Volume: €20.85M in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY performance: -46.76% drop in Apr, -23.37% in May, then +79.01% rebound in June.
• Key Volatility: June imports spiked 295.75% MoM after two months of contraction.

Paraguay - Netherlands Trade Balance & Market Dynamics

• Net Position: €41.82M trade surplus for Paraguay (Exports €62.67M vs. Imports €20.85M).
• Relationship Status: Paraguay dominates as a net exporter, with exports triple imports. June’s import rebound warrants monitoring for demand shifts.

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

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

Get Historical Paraguay Netherlands Trade Records

Paraguay-Netherlands Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Netherlands

• Top Commodity: Rank #1 export is HS Code 22 (Beverages, spirits, and vinegar) at 42.89% of total exports to Netherlands.
• Demand Driver: Netherlands likely imports these for consumer market distribution, given the high share of finished beverages.
• Concentration: Trade is highly concentrated, with HS Code 22 and 23 (Residues from food industries) together accounting for 85.37% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Netherlands

• Top Commodity: Rank #1 import is HS Code 27 (Mineral fuels, oils) at 43.11% of total imports from Netherlands.
• Dependency Nature: Reflects energy security dependency, as Paraguay relies on Netherlands for refined petroleum products.

Paraguay - Netherlands Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports agricultural byproducts (HS 22, 23) while importing energy (HS 27) and machinery (HS 84).
• Value Chain Position: Netherlands holds the higher value-add position, supplying processed fuels and machinery, while Paraguay exports raw or semi-processed agricultural goods.

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

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

Check Detailed Paraguay-Netherlands Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Paraguay’s trade surplus with the Netherlands is expected to widen further in Q3 2023, driven by sustained demand for agricultural exports (HS 22, 23) and potential softening in Dutch energy prices (HS 27). However, the June import rebound signals Dutch exporters may regain momentum, requiring Paraguayan buyers to lock in favorable terms before renewed demand tightens supply. Volatility in beverage exports—evident in May’s surge and June’s correction—calls for diversification beyond HS 22 to stabilize revenue streams.

Strategic Moves

• Secure Long-Term Beverage Contracts: Paraguayan exporters must lock in multi-quarter agreements with Dutch distributors to capitalize on structural demand while mitigating month-to-month volatility.
• Diversify Energy Suppliers: Reduce reliance on Dutch mineral fuels (HS 27) by negotiating with alternative EU suppliers to hedge against price spikes triggered by Netherlands’ rebound.
• Invest in Semi-Processing: Shift from raw agricultural exports (HS 23) to higher-value intermediates (e.g., pre-processed feed stocks) to capture more margin and reduce exposure to commodity price swings.

Frequently Asked Questions

How did Paraguay - Netherlands trade perform in 2023 Q2?

Paraguay recorded €62.67M in exports and €20.85M in imports, with explosive YoY export growth (up to 377.7% in June) and a mixed import performance (-46.76% in April, +79.01% in June).

What are the top exports from Paraguay to Netherlands?

The top exports are HS Code 22 (Beverages, spirits, and vinegar) at 42.89% and HS Code 23 (Residues from food industries), together accounting for 85.37% of total exports.

What does Paraguay import from Netherlands?

The top import is HS Code 27 (Mineral fuels, oils) at 43.11%, reflecting Paraguay’s energy security dependency on the Netherlands.

What is the trade balance between Paraguay and Netherlands?

Paraguay had a €41.82M trade surplus in Q2 2023, with exports triple imports. June’s import rebound suggests potential demand shifts.