Paraguay - United States Trade 2023 Q1: Energy Deficit Surge

Key Market Takeaways: Paraguay - United States Trade

The bilateral trade relationship between Paraguay and United States is marked by volatility and a significant trade deficit in Q1 2023.

• Economic Pulse: Paraguay posted a $251.13M trade deficit with the U.S., driven by $309.64M in imports (mostly energy) versus $58.51M in exports. YoY swings were extreme, with no clear growth trend.
• Exchange Structure: Paraguay - United States trade statistics reveal a resource-for-tech complementarity—Paraguay exports leather and agricultural goods (top 4 categories = 60.09% share) while importing U.S. mineral fuels (48.57% of total imports).
• Strategic Interdependence: Heavy energy reliance defines the partnership, with Paraguay dependent on U.S. fuel supplies and occupying a lower value-add position in the exchange.

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

Paraguay-United States Trade Trend in Q1 2023

Paraguay Export Performance: Shipments to United States

• Total Volume: $58.51M in Q1 2023.
• Growth Trend & Context:
  • Volatile YoY performance: +47.52% in January, -28.87% in February, and -49.13% in March. No clear trend due to sharp fluctuations.
• Key Volatility: March saw the highest MoM surge (+65.57%), while February had the steepest drop (-27.55%).

Paraguay Import Performance: Sourcing from United States

• Total Volume: $309.64M in Q1 2023.
• Growth Trend & Context:
  • Extreme YoY swings: +150.27% in January, -37.6% in February, and +17.88% in March. No consistent direction.
• Key Volatility: February recorded a -72.25% MoM collapse, while January was the peak month ($174.63M).

Paraguay - United States Trade Balance & Market Dynamics

• Net Position: Trade deficit of $251.13M (Imports of $309.64M vs. Exports of $58.51M).
• Relationship Status: Heavy reliance on U.S. imports, with exports failing to offset the imbalance.

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

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

Get Historical Paraguay United States Trade Records

Paraguay-United States Top Trading Products in Q1 2023

Paraguay Export Profile: What Does Paraguay Sell to United States

• Top Commodity: HS Code 42 (Leather articles) dominates with 21.13% share.
• Demand Driver: United States imports these for consumer market needs, likely in fashion or accessories.
• Concentration: No single category exceeds 50%, but the top 4 codes (42, 12, 35, 23) account for 60.09%, indicating moderate concentration.

Paraguay Import Profile: What Does Paraguay Buy from United States

• Top Commodity: HS Code 27 (Mineral fuels) leads at 48.57%, nearly half of all imports.
• Dependency Nature: Energy security dependency, as Paraguay relies heavily on U.S. fuel supplies.

Paraguay - United States Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (leather, oils, animal feed) and imports high-value fuels and machinery.
• Value Chain Position: United States holds the higher value-add position, supplying critical energy and industrial goods, while Paraguay provides primary commodities.

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

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

Check Detailed Paraguay-United States Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay - United States trade relationship is likely to remain volatile in the near term, with Paraguay’s export performance struggling to stabilize amid erratic demand shifts. The heavy reliance on U.S. mineral fuels (HS Code 27) will sustain the trade deficit, while Paraguay’s leather and agricultural exports face inconsistent uptake. However, if energy prices stabilize and U.S. consumer demand rebounds, Q2 2023 could see a partial recovery in export volumes. Traders should prepare for continued fluctuations rather than steady growth.

Strategic Moves

• Diversify Export Markets: Paraguayan exporters must reduce dependence on the U.S. by targeting alternative buyers in Asia or Europe for leather goods (HS Code 42) and animal feed (HS Code 23).
• Lock in Fuel Supply Contracts: Given Paraguay’s energy dependency, importers should negotiate long-term agreements with U.S. suppliers to mitigate price volatility in mineral fuels (HS Code 27).
• Invest in Value-Added Processing: To improve trade balance, Paraguayan producers should upgrade leather and agricultural exports into higher-margin finished goods, reducing reliance on raw material sales.

Frequently Asked Questions

How did Paraguay - United States trade perform in 2023 Q1?

Paraguay exported $58.51M to the U.S. and imported $309.64M, showing volatile YoY growth with no clear trend. The trade deficit stood at $251.13M.

What are the top exports from Paraguay to United States?

The top exports include Leather articles (HS Code 42), along with other commodities like oils, animal feed, and raw materials, forming a moderately concentrated export profile.

What does Paraguay import from United States?

Paraguay primarily imports Mineral fuels (HS Code 27), accounting for 48.57% of total imports, reflecting heavy reliance on U.S. energy supplies.

What is the trade balance between Paraguay and United States?

Paraguay recorded a trade deficit of $251.13M, driven by significantly higher imports of fuels and machinery compared to exports of raw materials.