Paraguay - United States Trade 2023 Q3: Deficit-Driven Exchange

Key Market Takeaways: Paraguay - United States Trade

The bilateral trade relationship between Paraguay and United States shows mixed growth with high volatility in Q3 2023.

• Deficit-Driven Trade: Paraguay recorded a $279.84M trade deficit with the U.S., driven by $368.38M in imports (down YoY) versus $88.54M in exports (volatile growth).
• Resource-for-Tech Exchange: Paraguay - United States trade statistics reveal an asymmetrical exchange—Paraguay exports agricultural goods (sugar, oils) and leather, while importing energy (49.6% of imports) and machinery from the U.S.
• Strategic Dependency: Paraguay relies heavily on U.S. energy and tech imports, while its export growth remains inconsistent, highlighting unbalanced complementarity.

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

Paraguay-United States Trade Trend in Q3 2023

Paraguay Export Performance: Shipments to United States

• Total Volume: $88.54M in Q3 2023.
• Growth Trend & Context:
  • YoY growth was mixed: July (+36.62%) and September (+15.32%) saw robust expansion, but August’s +108.48% surge skewed the quarter.
  • No specific trade news to explain volatility.
• Key Volatility: August’s exports spiked 84.76% MoM, followed by a sharp -41.27% drop in September.

Paraguay Import Performance: Sourcing from United States

• Total Volume: $368.38M in Q3 2023.
• Growth Trend & Context:
  • YoY contractions dominated: August (-10.14%) and September (-37.51%) declines offset July’s +12.27% gain.
• Key Volatility: September’s imports fell -37.51% YoY, the steepest drop in the quarter.

Paraguay - United States Trade Balance & Market Dynamics

• Net Position: Trade deficit of $279.84M (Imports exceeded exports).
• Relationship Status: Paraguay remains heavily dependent on U.S. imports, with exports failing to offset the gap despite August’s outlier surge.

Paraguay Import Trend from United States 2023 Q3 (Source: yTrade)**

Paraguay Export Trend to United States 2023 Q3 (Source: yTrade)**

Get Historical Paraguay United States Trade Records

Paraguay-United States Top Trading Products in Q3 2023

Paraguay Export Profile: What Does Paraguay Sell to United States

• Top Commodity: HS Code 17 (Sugars and sugar confectionery) dominates at 25.46% of exports.
• Demand Driver: United States likely imports these for industrial processing (e.g., food manufacturing) or consumer market needs.
• Concentration: No single category exceeds 50%, but the top 3 exports (HS 17, 12, 42) account for 61.05%, indicating moderate concentration.

Paraguay Import Profile: What Does Paraguay Buy from United States

• Top Commodity: HS Code 27 (Mineral fuels, oils) leads with 49.64% of imports, reflecting heavy reliance.
• Dependency Nature: Energy security dependency, as mineral fuels are critical for Paraguay’s industrial and transportation sectors.

Paraguay - United States Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports agricultural goods (HS 17, 12) and leather (HS 42) while importing energy (HS 27) and machinery (HS 84, 85).
• Value Chain Position: United States holds the higher value-add position, supplying advanced machinery (HS 84, 85) and pharmaceuticals (HS 30), while Paraguay’s exports are primarily low-value raw materials.

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 forecast for Q4 2023 and beyond hinges on mitigating volatility while capitalizing on structural complementarity. Despite August’s export surge, Paraguay’s heavy reliance on U.S. energy imports (HS 27) and persistent trade deficit signal vulnerability to price shocks. Expect subdued export growth unless Paraguay diversifies beyond raw materials (HS 17, 12) and taps into higher-value U.S. demand for processed goods. Meanwhile, U.S. machinery (HS 84, 85) and pharmaceutical (HS 30) imports will likely remain stable, reinforcing the resource-for-tech exchange.

Strategic Moves

• Lock in Energy Supply Contracts: Paraguayan importers must secure long-term agreements for mineral fuels (HS 27) to hedge against price volatility and ensure energy security.
• Upgrade Export Value Chains: Exporters should pivot from raw sugar (HS 17) and leather (HS 42) to semi-processed or branded goods, targeting U.S. food manufacturing and retail sectors.
• Diversify Import Sources: Reduce dependency on U.S. machinery by exploring competitive alternatives from the EU or Asia, particularly for mid-tier industrial equipment (HS 84, 85).

Frequently Asked Questions

How did Paraguay - United States trade perform in 2023 Q3?

Paraguay exported $88.54M to the United States in Q3 2023, with mixed YoY growth, while imports totaled $368.38M, showing YoY declines in August and September.

What are the top exports from Paraguay to United States?

The top exports are sugars and sugar confectionery (HS 17), along with other agricultural goods and leather (HS 12, 42), accounting for 61.05% of total exports.

What does Paraguay import from United States?

Paraguay primarily imports mineral fuels and oils (HS 27) from the United States, making up 49.64% of imports, followed by machinery (HS 84, 85).

What is the trade balance between Paraguay and United States?

Paraguay had a trade deficit of $279.84M with the United States in Q3 2023, as imports significantly outweighed exports.