Paraguay - Uruguay Trade 2023 Q1: $20.76M Surplus

Key Market Takeaways: Paraguay - Uruguay Trade

The bilateral trade relationship between Paraguay and Uruguay shows growth with notable volatility in 2023 Q1.

• Paraguay holds a $20.76M trade surplus, exporting $48.28M (mixed YoY growth) while importing $27.52M (flat YoY).
• Trade statistics reveal a resource-for-resource exchange: Paraguay supplies agricultural byproducts (HS 23, 10) and imports processed foods (HS 11) and industrial inputs from Uruguay.
• Complementary but uneven interdependence: Uruguay captures higher value-add, while Paraguay relies on raw material exports.

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

Paraguay-Uruguay Trade Trend in Q1 2023

Paraguay Export Performance: Shipments to Uruguay

• Total Volume: $48.28M in Q1 2023.
• Growth Trend & Context:
  • YoY growth was mixed, with January surging 93.14% but March barely rising 2.47%.
  • No specific trade news to explain volatility.
• Key Volatility: March saw a sharp 38.13% MoM jump after stagnant February growth (1.22%).

Paraguay Import Performance: Sourcing from Uruguay

• Total Volume: $27.52M in Q1 2023.
• Growth Trend & Context:
  • YoY imports fell 28.16% in January, ending Q1 flat (0.28% YoY in February).
• Key Volatility: February spiked 52.35% MoM, but March dropped 25.68%.

Paraguay - Uruguay Trade Balance & Market Dynamics

• Net Position: $20.76M surplus for Paraguay (Exports $48.28M > Imports $27.52M).
• Relationship Status: Paraguay maintains a strong net exporter position, though import volatility suggests uneven demand.

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

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

Get Historical Paraguay Uruguay Trade Records

Paraguay-Uruguay Top Trading Products in Q1 2023

Paraguay Export Profile: What Does Paraguay Sell to Uruguay

• Top Commodity: HS Code 23 (Residues and waste from the food industries) dominates with 33.05% share.
• Demand Driver: Uruguay likely uses these for industrial processing, such as animal feed or biofuel production.
• Concentration: The top 3 exports (HS 23, 10, 02) account for 66.51%, indicating high trade concentration in agricultural byproducts and staples.

Paraguay Import Profile: What Does Paraguay Buy from Uruguay

• Top Commodity: HS Code 11 (Milling products, malt, starches) leads at 21.10% of imports.
• Dependency Nature: Reflects food security dependency, as Paraguay sources processed agricultural goods from Uruguay.

Paraguay - Uruguay Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Paraguay exports low-value agricultural byproducts (HS 23, 10) and imports higher-value processed foods (HS 11, 04) and industrial inputs (HS 38, 39).
• Value Chain Position: Uruguay holds the higher value-add position, supplying processed goods (e.g., HS 11, 30) versus Paraguay’s raw or semi-processed exports.

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

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

Check Detailed Paraguay-Uruguay Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Paraguay’s trade surplus with Uruguay is expected to hold steady in Q2 2023, supported by sustained demand for agricultural byproducts (HS 23) and staples (HS 10). However, import volatility—particularly the sharp February spike and March drop—suggests Uruguay’s demand for Paraguayan goods may face short-term fluctuations. Given the complementary nature of trade, where Paraguay supplies raw materials and Uruguay processes them, long-term growth hinges on stabilizing supply chains and securing consistent export volumes. Traders should monitor Uruguay’s industrial activity for signals of shifting demand.

Strategic Moves

• Lock in Long-Term Contracts: Paraguayan exporters of HS 23 and HS 10 should negotiate fixed-term agreements with Uruguayan buyers to mitigate price volatility and ensure stable revenue streams.
• Diversify Import Sources: Given the erratic spikes in milling product (HS 11) imports, Paraguayan buyers should explore alternative suppliers in Argentina or Brazil to reduce dependency on Uruguayan processed goods.
• Invest in Value-Add Processing: To counter Uruguay’s higher-value exports, Paraguayan producers should explore partnerships or local processing upgrades for key commodities like animal feed (HS 23) to capture more margin.

Frequently Asked Questions

How did Paraguay - Uruguay trade perform in 2023 Q1?

Paraguay exported $48.28M to Uruguay, with mixed YoY growth (January surged 93.14%, March rose 2.47%). Imports from Uruguay totaled $27.52M, showing volatility but ending Q1 flat (0.28% YoY growth in February).

What are the top exports from Paraguay to Uruguay?

The top exports are HS Code 23 (Residues and waste from food industries), HS Code 10 (Cereals), and HS Code 02 (Meat and edible offal), accounting for 66.51% of total exports.

What does Paraguay import from Uruguay?

The top import is HS Code 11 (Milling products, malt, starches), making up 21.10% of imports, followed by processed foods (HS 04) and industrial inputs (HS 38, 39).

What is the trade balance between Paraguay and Uruguay?

Paraguay had a $20.76M trade surplus in Q1 2023, with exports ($48.28M) exceeding imports ($27.52M). The surplus reflects Paraguay’s strong net exporter position.