Paraguay - United Arab Emirates Trade 2023 Q1: Deficit-Driven Volatility

Key Market Takeaways: Paraguay - United Arab Emirates Trade

The bilateral trade relationship between Paraguay and United Arab Emirates is marked by extreme volatility and a heavy trade deficit in Q1 2023.

• Deficit-Driven Trade: Paraguay recorded a $109.15M trade deficit with the UAE, driven by $109.84M in imports (mostly fuel) versus just $690.43K in exports.
• Resource-for-Tech Exchange: Paraguay exports electrical machinery (47.52% share) and agricultural goods, while relying almost entirely on UAE for mineral fuels (99.03% of imports).
• Asymmetric Dependency: The UAE holds strategic leverage as Paraguay’s critical energy supplier, while Paraguay’s export footprint remains minimal.

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

Paraguay-United Arab Emirates Trade Trend in Q1 2023

Paraguay Export Performance: Shipments to United Arab Emirates

• Total Volume: $690.43K in Q1 2023.
• Growth Trend & Context:
  • YoY swings were extreme: -19.93% in January, -96.96% in February, then a rebound to +61.51% in March.
• Key Volatility: February saw an -81.65% MoM drop, while March surged 201.25% MoM.

Paraguay Import Performance: Sourcing from United Arab Emirates

• Total Volume: $109.84M in Q1 2023.
• Growth Trend & Context:
  • YoY growth was explosive: +69.82% in January, +217.19% in February, and +4399.87% in March.
• Key Volatility: March dominated with a 116.33% MoM jump and a staggering YoY increase.

Paraguay - United Arab Emirates Trade Balance & Market Dynamics

• Net Position: Trade Deficit of $109.15M (Imports $109.84M vs. Exports $690.43K).
• Relationship Status: Paraguay is heavily dependent on imports from the UAE, with minimal export activity.

Paraguay Import Trend from United Arab Emirates 2023 Q1 (Source: yTrade)**

Paraguay Export Trend to United Arab Emirates 2023 Q1 (Source: yTrade)**

Get Historical Paraguay United Arab Emirates Trade Records

Paraguay-United Arab Emirates Top Trading Products in Q1 2023

Paraguay Export Profile: What Does Paraguay Sell to United Arab Emirates

• Top Commodity: Electrical machinery (HS 85) dominates with 47.52% share.
• Demand Driver: United Arab Emirates likely uses these for industrial processing or re-export.
• Concentration: Trade is moderately concentrated, with HS 85 accounting for nearly half of exports.

Paraguay Import Profile: What Does Paraguay Buy from United Arab Emirates

• Top Commodity: Mineral fuels (HS 27) make up 99.03% of imports.
• Dependency Nature: Energy security dependency, as Paraguay relies on UAE for nearly all its fuel imports.

Paraguay - United Arab Emirates Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports electrical machinery and agricultural goods (HS 12, 02) while importing fuel (HS 27).
• Value Chain Position: UAE holds the higher value-add position, supplying critical energy inputs, while Paraguay exports lower-value manufactured and agricultural products.

Import Analysis by Product: United Arab Emirates to Paraguay (Source: yTrade)

Export Analysis by Product: Paraguay to United Arab Emirates (Source: yTrade)

Check Detailed Paraguay-United Arab Emirates Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay - United Arab Emirates trade relationship is poised for continued volatility, with Paraguay’s import dependency on UAE fuel (HS 27) likely to deepen given the explosive YoY growth (+4,399.87% in March). However, Paraguay’s export performance remains fragile, with extreme monthly swings (-96.96% in February, +201.25% in March). Traders should expect the trade deficit to widen unless Paraguay diversifies its export basket or secures stable demand for electrical machinery (HS 85). The UAE’s role as a critical energy supplier will keep Paraguay in a structurally weaker position unless strategic adjustments are made.

Strategic Moves

• Diversify Export Markets: Paraguayan exporters must aggressively target alternative markets for electrical machinery (HS 85) to reduce reliance on volatile UAE demand. Explore Southeast Asia and Africa for re-export opportunities.
• Lock in Fuel Supply Contracts: Given the UAE’s dominance in mineral fuels (HS 27), Paraguayan importers should negotiate long-term supply agreements to hedge against price volatility and ensure energy security.
• Boost High-Value Agri-Exports: Paraguay should capitalize on its agricultural strengths (HS 02, 12) by upgrading processing capabilities to meet UAE’s premium food import demand, shifting away from low-margin raw commodity exports.

Frequently Asked Questions

How did Paraguay - United Arab Emirates trade perform in 2023 Q1?

Paraguay's exports to the UAE totaled $690.43K, with volatile YoY swings, while imports surged to $109.84M, driven by explosive growth in March (+4399.87% YoY).

What are the top exports from Paraguay to United Arab Emirates?

Electrical machinery (HS 85) dominates Paraguay's exports to the UAE, accounting for 47.52% of total shipments.

What does Paraguay import from United Arab Emirates?

Paraguay primarily imports mineral fuels (HS 27) from the UAE, making up 99.03% of total imports.

What is the trade balance between Paraguay and United Arab Emirates?

Paraguay recorded a trade deficit of $109.15M in Q1 2023, driven by heavy reliance on UAE fuel imports.