PARAGUAY: Export Sector Loses Competitiveness and Warns of a 26% Drop

"The main challenge facing the export sector, whether or not its members belong to CAPEX, is the appreciation of the national currency against the US dollar. This, together with the costs arising from low river levels and from access to the sea, which our regional competitors do not have, is pushing us out of many markets, because we have become less competitive," warned Pablo Cuevas, general manager of CAPEX.

For Cuevas, this situation threatens not only the ability of Paraguayan companies to win new markets, but also their continued presence in those that took years of work and investment to win.

The economic impact is also reflected in the income companies receive in national currency. According to the general manager, the reduction reaches 26 %, while operating commitments must still be covered in the local market.

"This percentage represents what is used in the local market to pay for production costs, raw materials, energy, inputs, domestic logistics and other services", Cuevas explained.

CAPEX seeks to strengthen coordination among business associations.

This gap between income converted into guaraníes and the expenses companies must meet is one of the association's main concerns, especially in a scenario in which logistics costs also affect the conditions for accessing international markets.

CAPEX calls for measures in response to the fall of the dollar

The association maintains that it has been raising the effects of the appreciation of the national currency since September 2025. Cuevas indicated that CAPEX was the first association to speak out on this situation and that it kept the issue alive in various forums and media outlets, especially before the authorities of the Central Bank of Paraguay (BCP). As he explained, the goal has been to raise awareness of the harm this situation causes to domestic producers, to industry and, consequently, to exporters. The organization also sought compensation alternatives through forward dollar purchases at exchange rates more favorable than the current one. However, these tools do not yet benefit medium-sized exporters, the general manager noted.

Against this backdrop, CAPEX considers it a priority to contain the abrupt fall of the dollar. Cuevas argued that there should be intervention to moderate the decline in the exchange rate, in the same way action is taken when it rises. The association's concern is that this situation will erode companies' competitiveness and limit their growth prospects, especially with regard to expansion into new markets.

Export procedures and compliance with the Waterway

In addition to exchange-rate measures, CAPEX proposes reviewing export processes and procedures, from product registration to customs clearance of cargo.

CAPEX also calls for maintaining a firm position in demanding compliance with the Waterway Agreement by all signatory States. These points form part of an agenda that requires attention given the difficulties facing the sector. Exchange-rate developments, transport costs and foreign trade procedures affect the conditions under which Paraguayan companies place their products on the international market.

In this scenario, CAPEX seeks to strengthen coordination among business associations and to bring more exporters into the work of representing the sector. The proposal aims to join forces and promote a common agenda with a national vision.

"This is a moment that demands sincere unity among business associations, with a national vision above sectoral or private interests. We need to work together, join forces and build proposals that help improve the conditions for producing and exporting from Paraguay", he stressed.

He also invited more exporters to approach CAPEX and join this work. "Broader and more cohesive representation will make it possible to defend the sector's interests and put forward solutions to the authorities. The competitiveness of our exports is a challenge that requires everyone's commitment," concluded the general manager of CAPEX.