Paraguay - Peru Trade 2023 Q2: Explosive Export Growth

Key Market Takeaways: Paraguay - Peru Trade

The bilateral trade relationship between Paraguay and Peru surged in Q2 2023, driven by Paraguay’s explosive export growth.

• Economic Pulse: Paraguay holds a $62.54M trade surplus with Peru, exporting $68.47M (up 435-835% YoY) while importing just $5.93M. Volatility in monthly flows signals shifting shipment timing or demand adjustments.
• Exchange Structure: Paraguay-Peru trade statistics reveal a resource-for-resource exchange—Paraguay ships agricultural byproducts (HS 23, 55.4% share) for Peru’s mineral fuels (HS 27, 16.9% share), highlighting low-margin vs. higher-value trade.
• Strategic Interdependence: Highly complementary but imbalanced: Paraguay relies on Peru as a key export outlet, while Peru’s energy exports meet Paraguay’s industrial needs.

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

Paraguay-Peru Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Peru

• Total Volume: $68.47M in Q2 2023.
• Growth Trend & Context:
  • Explosive YoY growth across all months (435.22% to 835.36%), indicating a structural shift in trade dynamics.
  • No specific news to explain the surge, suggesting organic demand or prior-year base effects.
• Key Volatility: April saw an 86.45% MoM spike, followed by a -33.98% drop in June, signaling potential month-end volatility or shipment timing shifts.

Paraguay Import Performance: Sourcing from Peru

• Total Volume: $5.93M in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY trends: +16.44% in April, -35.05% in May, and +6.65% in June, reflecting inconsistent demand.
• Key Volatility: April imports dropped -35.67% MoM, while May rebounded (+6.13%) before a -20.68% June contraction, hinting at supply chain adjustments.

Paraguay - Peru Trade Balance & Market Dynamics

• Net Position: Paraguay holds a $62.54M trade surplus with Peru (Exports $68.47M vs. Imports $5.93M).
• Relationship Status: Dominant net exporter role, with exports dwarfing imports by a factor of 11.5x, suggesting Peru is a key outlet for Paraguayan goods.

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

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

Get Historical Paraguay Peru Trade Records

Paraguay-Peru Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Peru

• Top Commodity: HS Code 23 (Residues and waste from the food industries) dominates with 55.40% share.
• Demand Driver: Peru likely uses these for industrial processing, possibly in animal feed or biofuel production.
• Concentration: Extreme concentration—HS Code 23 and 15 (Animal/vegetable fats) account for 89.98% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Peru

• Top Commodity: HS Code 27 (Mineral fuels, oils) leads at 16.86% share.
• Dependency Nature: Energy security dependency, as mineral fuels are critical for Paraguay’s industrial and transport sectors.

Paraguay - Peru Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Paraguay exports agricultural byproducts (HS 23, 15) and imports energy (HS 27) and minerals (HS 25).
• Value Chain Position: Peru holds a slight edge with higher-value exports (fuels, ores), while Paraguay’s exports are low-margin bulk commodities.

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

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

Check Detailed Paraguay-Peru Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay-Peru trade relationship is poised for sustained growth, driven by Paraguay’s explosive export performance in agricultural byproducts (HS 23, 15) and Peru’s steady demand for these commodities. With exports surging 435-835% YoY in Q2 2023, Paraguay’s trade surplus will likely widen further, though month-to-month volatility may persist due to shipment timing or supply chain adjustments. Peru’s reliance on Paraguayan residues for industrial processing (e.g., animal feed, biofuels) suggests a structural, long-term demand shift rather than a temporary spike. However, Paraguay’s import volatility from Peru—particularly in mineral fuels (HS 27)—indicates potential energy supply risks that traders should monitor.

Strategic Moves

• Lock in Long-Term Contracts for HS 23 Exports: Paraguayan exporters should secure multi-year agreements with Peruvian buyers to stabilize revenue streams and mitigate month-end shipment volatility.
• Diversify Energy Imports Beyond Peru: Given the erratic import trends in mineral fuels (HS 27), Paraguay must explore alternative suppliers in Brazil or Argentina to reduce dependency on Peruvian energy shipments.
• Invest in Value-Added Processing for HS 15/23: To counter Peru’s higher-margin exports, Paraguayan producers should upgrade infrastructure (e.g., refining agricultural byproducts into biofuels) to capture more value in the supply chain.

Frequently Asked Questions

How did Paraguay - Peru trade perform in 2023 Q2?

Paraguay's exports to Peru surged with explosive YoY growth (435.22% to 835.36%), totaling $68.47M, while imports from Peru were inconsistent, reaching $5.93M.

What are the top exports from Paraguay to Peru?

HS Code 23 (Residues and waste from food industries) dominates at 55.40%, followed by HS Code 15 (Animal/vegetable fats), together accounting for 89.98% of exports.

What does Paraguay import from Peru?

HS Code 27 (Mineral fuels, oils) leads at 16.86%, reflecting Paraguay's energy security dependency, alongside other minerals (HS 25).

What is the trade balance between Paraguay and Peru?

Paraguay holds a $62.54M trade surplus with Peru, as exports dwarf imports by 11.5x, reinforcing its dominant net exporter role.