Paraguay - Uruguay Trade 2023 Q2: Surplus & Resource Swap

Key Market Takeaways: Paraguay - Uruguay Trade

The bilateral trade relationship between Paraguay and Uruguay shows growth with high volatility in 2023 Q2.

• Economic Pulse: Paraguay holds a $33.29M trade surplus, exporting $60.16M (up sharply in April/May) while importing $26.87M (YoY declines in April/June).
• Exchange Structure: Paraguay - Uruguay trade statistics reveal resource-for-resource complementarity: agricultural byproducts (HS 23, 30.69% of exports) swapped for processed foods (HS 11, 28.49% of imports).
• Strategic Interdependence: Asymmetric dependency—Uruguay captures higher value-add with pharmaceuticals and milled goods, while Paraguay supplies raw materials.

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

Paraguay-Uruguay Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Uruguay

• Total Volume: $60.16M in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY performance: April surged (+120.66%), May grew (+53.88%), but June plummeted (-38.04%).
  • No specific trade news to explain volatility.
• Key Volatility: April saw the highest exports ($24.27M) and the sharpest MoM drop occurred in June (-28.26%).

Paraguay Import Performance: Sourcing from Uruguay

• Total Volume: $26.87M in Q2 2023.
• Growth Trend & Context:
  • YoY declines in April (-38.34%) and June (-45.07%), offset by May’s rebound (+8.48%).
• Key Volatility: May recorded the highest imports ($12.98M), while April had the steepest MoM contraction (-27.54%).

Paraguay - Uruguay Trade Balance & Market Dynamics

• Net Position: Paraguay holds a trade surplus of $33.29M (Exports $60.16M > Imports $26.87M).
• Relationship Status: Strong net exporter role, with exports more than double imports. Volatility suggests uneven demand or supply chain adjustments.

Paraguay Import Trend from Uruguay 2023 Q2 (Source: yTrade)**

Paraguay Export Trend to Uruguay 2023 Q2 (Source: yTrade)**

Get Historical Paraguay Uruguay Trade Records

Paraguay-Uruguay Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Uruguay

• Top Commodity: HS Code 23 (Residues and waste from the food industries) dominates at 30.69% of exports.
• Demand Driver: Uruguay likely uses these for industrial processing, possibly in animal feed or biofuel production.
• Concentration: The top 3 exports (HS 23, 10, 02) account for 72.03%, indicating high reliance on agricultural byproducts and raw materials.

Paraguay Import Profile: What Does Paraguay Buy from Uruguay

• Top Commodity: HS Code 11 (Milling products, malt, starches) leads at 28.49% of imports.
• Dependency Nature: Primarily agricultural (HS 11, 04, 25), suggesting food security linkages, with secondary pharmaceutical inputs (HS 30, 31).

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 food items (HS 11) and pharmaceuticals (HS 30).
• Value Chain Position: Uruguay holds the higher value-add position, supplying processed goods (HS 11, 30) versus Paraguay’s raw material exports (HS 23, 10). Trade skew suggests asymmetric dependency on Uruguay for value-added products.

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 likely to persist in Q3 2023, but volatility in export demand—particularly for agricultural byproducts (HS 23)—may temper growth. Uruguay’s reliance on processed goods (HS 11, 30) suggests stable import demand, but Paraguay must address supply chain inefficiencies to capitalize on rebound opportunities. The Paraguay-Uruguay trade forecast hinges on stabilizing raw material shipments and mitigating June’s export slump through targeted market interventions.

Strategic Moves

• Lock in Agri-Byproduct Contracts: Paraguay’s exporters should secure long-term agreements for HS 23 (food industry residues) to hedge against Uruguay’s fluctuating demand, ensuring consistent revenue streams.
• Diversify Processed Imports: Reduce dependency on Uruguay’s milling products (HS 11) by sourcing pharmaceuticals (HS 30) from alternative markets to weaken asymmetric trade reliance.
• Optimize Seasonal Logistics: Preempt Q3 volatility by aligning shipments with Uruguay’s processing cycles—front-load exports ahead of June’s typical downturn to smooth cash flow.

Frequently Asked Questions

How did Paraguay - Uruguay trade perform in 2023 Q2?

Paraguay's exports to Uruguay totaled $60.16M in Q2 2023, with mixed YoY growth (April +120.66%, June -38.04%). Imports from Uruguay fell to $26.87M, resulting in a $33.29M trade surplus for Paraguay.

What are the top exports from Paraguay to Uruguay?

HS Code 23 (Residues/waste from food industries) dominated at 30.69% of exports, followed by agricultural products (HS 10, 02). The top 3 commodities accounted for 72.03% of total exports.

What does Paraguay import from Uruguay?

HS Code 11 (Milling products, malt, starches) led at 28.49% of imports, alongside other agricultural goods (HS 04, 25) and pharmaceuticals (HS 30, 31).

What is the trade balance between Paraguay and Uruguay?

Paraguay holds a $33.29M trade surplus with Uruguay, exporting more than double its imports ($60.16M vs. $26.87M). Volatility suggests uneven demand or supply shifts.