Paraguay - United Arab Emirates Trade 2024 Q4: Volatile Deficit

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 Q4 2024.

• Economic Pulse: Paraguay recorded a $92.86M trade deficit with the UAE ($94.14M imports vs. $1.28M exports), driven by erratic import growth (+487.81% YoY peak in October) and declining exports (-32.91% YoY in December).
• Exchange Structure: Paraguay - United Arab Emirates trade statistics reveal a resource-for-energy model—Paraguay supplies agricultural raw materials (68% oilseeds) while importing UAE-processed fuels (71% mineral oils).
• Strategic Interdependence: The partnership is asymmetrically complementary, with Paraguay dependent on UAE for energy security and the UAE sourcing niche agricultural inputs.

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

Paraguay-United Arab Emirates Trade Trend in Q4 2024

Paraguay Export Performance: Shipments to United Arab Emirates

• Total Volume: $1.28M in Q4 2024.
• Growth Trend & Context:
  • YoY decline persisted across all months, with December (-32.91%) showing the sharpest drop.
  • No trade policy shifts or disruptions were reported to explain the contraction.
• Key Volatility: November saw a 145.44% MoM surge, but December reversed sharply (-41.13%).

Paraguay Import Performance: Sourcing from United Arab Emirates

• Total Volume: $94.14M in Q4 2024.
• Growth Trend & Context:
  • YoY growth remained extreme (Oct: +487.81%, Nov: +215.68%) before moderating in December (+68.61%).
  • No news context to explain the volatility.
• Key Volatility: October’s 116.44% MoM spike peaked imports, followed by a -19.32% correction in December.

Paraguay - United Arab Emirates Trade Balance & Market Dynamics

• Net Position: Trade Deficit of $92.86M (Imports $94.14M > Exports $1.28M).
• Relationship Status: Heavy import dependence, with exports negligible relative to inbound shipments.

Paraguay Import Trend from United Arab Emirates 2024 Q4 (Source: yTrade)**

Paraguay Export Trend to United Arab Emirates 2024 Q4 (Source: yTrade)**

Get Historical Paraguay United Arab Emirates Trade Records

Paraguay-United Arab Emirates Top Trading Products in Q4 2024

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

• Top Commodity: HS Code 12 (Oil seeds and oleaginous fruits) dominates with 68.08% share.
• Demand Driver: United Arab Emirates uses these for industrial processing, likely for food production or biofuel.
• Concentration: Highly concentrated—top commodity alone accounts for over two-thirds of exports.

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

• Top Commodity: HS Code 27 (Mineral fuels, oils) leads with 70.75% share.
• Dependency Nature: Energy security dependency—Paraguay relies heavily on UAE for fuel.

Paraguay - United Arab Emirates Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports agricultural raw materials (HS 12, 02) while importing energy (HS 27).
• Value Chain Position: UAE holds higher value-add, supplying processed fuels (HS 27) versus Paraguay’s bulk agricultural exports.

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 expected to remain volatile in the near term, with Paraguay’s heavy import dependency on UAE mineral fuels (HS 27) likely to sustain its trade deficit. While agricultural exports (HS 12) may stabilize, the lack of diversification leaves Paraguay vulnerable to commodity price swings. Without policy intervention or new trade agreements, the current imbalance will persist, with UAE maintaining its upper hand in value-added trade. Traders should brace for continued price fluctuations in energy imports and subdued export growth.

Strategic Moves

• Diversify Export Markets: Paraguay must reduce reliance on UAE for oilseed exports by targeting other high-demand regions in Asia and the Middle East to mitigate concentration risk.
• Negotiate Long-Term Fuel Contracts: Given the structural energy dependency, Paraguayan importers should lock in favorable terms with UAE suppliers to hedge against volatile fuel prices.
• Invest in Value-Added Processing: Instead of exporting raw agricultural commodities, Paraguay should develop domestic processing capabilities for oils and biofuels to capture higher margins and reduce trade asymmetry.

Frequently Asked Questions

How did Paraguay - United Arab Emirates trade perform in 2024 Q4?

Paraguay recorded a trade deficit of $92.86M, with exports at $1.28M (YoY decline) and imports at $94.14M (extreme YoY growth).

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

Oil seeds and oleaginous fruits (HS Code 12) dominate, accounting for 68.08% of Paraguay’s exports to the UAE.

What does Paraguay import from United Arab Emirates?

Mineral fuels and oils (HS Code 27) lead with a 70.75% share, reflecting Paraguay’s energy dependency on the UAE.

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

Paraguay faces a trade deficit, with imports ($94.14M) far exceeding exports ($1.28M) in Q4 2024.