Surname
Tutor
Course
Date
Abstract
Paraguay is a developing country that has recently been enjoying strong economic growth. It is landlocked, and most of its trade are done with its neighboring countries, which are Argentina, Bolivia, and Brazil. The country is the 70th largest exporter in the world. Currently, the country has a negative trade balance of slightly over $1 billion. Most of the Paraguay’s exports are agricultural products, such as meat and soy beans. However, the country largest export is electricity. Paraguay’s top imports are refined petroleum, chemicals, cars, and electronics. Despite being affected by years of political unrest, the county is currently enjoying a fairly stable democracy that may enable it to enhance its economy.
Keywords: export, import, trade
 
International Trade: Paraguay
COMTRADE Textile and Apparel Trade
Textile
2012-2013
1) Imports in Textiles (in million $):   $29,753,130 Year: 2012                       $32,013,080  Year: 2013
Exports in Textiles (in million $):   $6,156,749 Year: 2012             $9,305,897  Year: 2013
Balance of Trade? (in amount, positive or negative?):
Negative balance of trade $23,596,381  Year: 2012
Negative balance of trade $22,707,183  Year: 2013
Is the balance growing or shrinking? (5 year-to-year comparisons)
When compared to 2012, there was a decrease in the negative balance of trade by $889,198
2013-2014
2) Imports in Textiles (in million $):  $32,013,080  Year: 2013           $35,261,829  Year: 2014
Exports in Textiles (in million $):    $9,305,897  Year: 2013                         $12,122,384  Year: 2014
Balance of Trade? (in amount, positive or negative?):
Negative balance of trade $22,707,183  Year: 2013
Negative balance of trade $22,139,445  Year: 2014
Is the balance growing or shrinking? (5 year-to-year comparisons)
In 2014, there was a decrease in the negative balance of trade by $567,738 from the 2013 figures.
2014-2015
3) Imports in Textiles (in million $):   $35,261,829  Year: 2014          $28,888,722  Year: 2015
Exports in Textiles (in million $):   $12,122,384  Year: 2014          $10,602,168  Year: 2015
Balance of Trade? (in amount, positive or negative?)
Negative balance of trade $22,139,445  Year: 2014
Negative balance of trade $18,286,554  Year: 2015
Is the balance growing or shrinking? (5 year-to-year comparisons)
The negative balance of trade in 2015 decreased to $18,286,554 from $22,139,445 in 2014.
2015-2016
4) Imports in Textiles (in million $):    $28,888,722  Year: 2015         $29,753,130  Year: 2016
Exports in Textiles (in million $):     $10,602,168  Year: 2015           $5,826,240  Year: 2016
Balance of Trade? (in amount, positive or negative?)
Negative balance of trade $18,286,554  Year: 2015
Negative balance of trade $23,926,890  Year: 2016
Is the balance growing or shrinking? (5 year-to-year comparisons)
The negative balance of trade in 2016 increased to $23,926,890 from $18,286,554 in 2015.
2016-2017
5) Imports in Textiles (in million $):   $29,753,130  Year: 2016                           $41,130,543  Year: 2017
Exports in Textiles (in million $):   $5,826,240  Year: 2016                                    $3,305,084  Year: 2017
Balance of Trade? (in amount, positive or negative?)
Negative balance of trade $23,926,890  Year: 2016
Negative balance of trade $37,825,459  Year: 2017
The negative balance of trade in 2017 increased from $23,926,890 in 2016 to in $37,825,459.
Overall, Paraguay has been having a negative balance of trade from 2012 to 2018.  The negative balance of trade was decreasing from 2012 till 2015. However, it increased in 2016 and 2017 (UN Comtrade b).
Clothing
2012-2013
1) Imports in Clothing (in million $): $138,352,538  Year: 2012       $141,888,804  Year: 2013                        Exports in Clothing (in million $):  $41,075,593    Year: 2012      $45,519,764  Year: 2013
Balance of Trade? (in amount, positive or negative?):
Negative Balance of Trade $97,276,945  Year: 2012
Negative Balance of Trade $96,369,040  Year: 2013
Is the balance growing or shrinking? (5 year-to-year comparisons)
The balance of trade decrease from $97,276,945 in 2012 to $96,369,040 in 2013.
2013-2014
2) Imports in Clothing (in million $):    $141,888,804  Year: 2013             $137,852,205  Year: 2014
Exports in Clothing (in million $):     $45,519,764  Year: 2013             $51,691,224  Year: 2014               Balance of Trade? (in amount, positive or negative?):
Negative balance of trade $96,369,040  Year: 2013
Negative balance of trade $86,160,981  Year: 2014
Is the balance growing or shrinking? (5 year-to-year comparisons)
The balance of trade decreased from $96,369,040 in 2013 to $86,160,981 in 2014.
2014-2015
3) Imports in Clothing (in million $):     $137,852,205  Year: 2014          $118,119,408  Year: 2015
Exports in Clothing (in million $):      $51,691,224  Year: 2014           $44,650,335  Year: 2015
Balance of Trade? (in amount, positive or negative?)
Negative balance of trade $86,160,981  Year: 2014
Negative balance of trade $73,469,073  Year: 2015
Is the balance growing or shrinking? (5 year-to-year comparisons)
The negative balance of trade decreased from $86,160,981 in 2014 to $73,469,073 in 2015.
2015-2016
4) Imports in Clothing (in million $): $118,119,408  Year: 2015                     $113,672,257  Year: 2016
Exports in Clothing (in million $):  $44,650,335  Year: 2015                      $43,939,709  Year: 2016
Balance of Trade? (in amount, positive or negative?):
Negative balance of trade $73,469,073  Year: 2015
Negative balance of trade $69,732,548  Year: 2016
Is the balance growing or shrinking? (5 year-to-year comparisons)
The negative balance of trade decreased from $73,469,073 in 2015 to $69,732,548 in 2016.
2016-2017
5) Imports in Clothing (in million $): $113,672,257  Year: 2016         $154,954,281  Year: 2017
Exports in Clothing (in million $):  $43,939,709  Year: 2016   $52,867,773  Year: 2017
Balance of Trade? (in amount, positive or negative?):
Negative balance of trade $69,732,548  Year: 2016
Negative balance of trade $102,086,508  Year: 2017
Is the balance growing or shrinking? (5 year-to-year comparisons)
The negative balance of trade increased from $69,732,548 in 2016 to $102,086,508 in 2017.
The balance of trade for cloths decreased from 2012 to 2016. However, there was a sharp increase in 2017 (UN Comtrade a).
 
Political Government
Paraguay has a presidential system of government. The president is the head of state and the head of government. In the current constitution, which was enacted in 1992, a person is elected as the president through a popular vote, and he/she served for five years. The president has executive powers, the two National Congress chambers in the country have legislative powers, and the Supreme Court of Justices, Tribunals, and Courts of Civil Law have judicial powers (Global Security. Org).
The current president of Paraguay is Horacio Cartes, and he was elected on 15th August 2013. The president and the vice president are elected on the same ticket for a five year term. The elected president has the mandate of nominating the Council of Ministers, which is the cabinet. Paraguay has a bicameral Congreso (Congress), which consists of the Senate and Chamber of Deputies (Global Security. Org). The Senate has 45 members and the Chamber of Deputies has 80 members, who are elected through a departmental vote to serve for 5 years. Seats in the Congreso and Chamber of Deputies are allocated based on a party’s popularity (Sawe). Finally, the Judiciary is the third of the government. The Supreme Court of Justice is the highest court (Global Security. Org). It is composed of nine Supreme Court judges who are appointed by the Senate and the executive to serve for a term of five years.
In the United States has a federal form of government made up of 50 states, Washington D.C., as the district, and several territories. The federal government is divided into three branches’ legislature, executive, and judicial. The legislature is composed of the House of Representatives and the Senate (USA.gov). The executive consists of the president who is the head of state and government. He/she is also the commander-in-chief and the chief diplomat (USA.gov). The judiciary interprets the laws, and the Supreme Court of the United States is the highest court in the country.
The predominant political parties in Paraguay are Asociacion Nacional Republicana (ANR), Partido Liberal Radical Autentico (PLRA), Union Nacional de Ciudadanos Eticos (UNACE), Avanza Pais (AP), Patria Querida (PQ), and Supportive Country Party (PPS) (Martins). Paraguay has had a very fragile democracy, which has been mired with civil unrest (BBC News). The country also has chronic economic problems and corruption, due to poor governance, which makes it unfriendly for doing business (BBC News; Trading Economics).
Trade Agreements
The main trade agreements for Paraguay in its region are Latin American Integration Association, which was established in 1980, Mercosur, which was established in 1991, and Latin American and the Caribbean Economic System, which was founded in 1975 (Foreign Affairs; SELA, Council on Foreign Relations). The Latin American Integration Association aims at establishing a Common market in in Latin-America and enhancing balanced socio-economic development in the region. Mercosur main objective is the promotion of free trade and movement of goods, people, and currency among member states. Finally, the Latin American and the Caribbean Economic System aims at enhancing social and economic cooperation between Latin American and Caribbean countries. These trade organizations enable Paraguay to interact with the rest of the world through trade. Further, the country is also active in sports, especially in soccer, where it regularly participates in international tournaments.
Paraguay is the 70th largest export economy in the world. In 2016, the country exported $8.48 billion and imported $9.7billion. It had a negative trade balance of $1.1 billion. The GDP of Paraguay in 2016 was $27.4billion and its GDP per capita was $9600. The main exports of the country are electricity ($2.13 billion), soybeans ($1.82 billion), Soybean meal ($852 million), frozen bovine meat ($569 million), and bovine meat ($518 million). The country’s top imports are refined petroleum ($1.04 billion), broadcasting equipment ($479 million), cars ($414 million), pesticides ($282 million), and mixed mineral or chemical fertilizer ($258 million). The country’s top export destinations are Brazil, Argentina, Russia, Chile, and Italy. The top import origins are United States, China, Argentina, and Chile (OEC, 2017). Paraguay has preferential trade agreement with Argentina, Paraguay, Brazil, Uruguay, and Venezuela (which is currently suspended).
 
 
 
 
 
 
 
 
 
 
 
 
 
Works Cited
BBC News. Paraguay Country Profile. 4th January 2018, www.bbc.com/news/world-latin-america-19978115. Accessed 26th February, 2018.
Council on Foreign Relations. Mercosur: South America’s Fractious Trade Bloc. 2018, https://www.cfr.org/backgrounder/mercosur-south-americas-fractious-trade-bloc. Accessed 26th February, 2018.
Foreign Affairs. The Latin American Integration Association (ALADI-LAIA). 2018, http://www.itamaraty.gov.br/en/politica-externa/integracao-regional/5975-aladi-en. Accessed 26th February, 2018.
Global Security. Org. Paraguay-Government. 2018, www.globalsecurity.org/military/world/paraguay/government.htm. Accessed 26th February, 2018.
Martins, Antonio. Political Flags of Paraguay.  Flags Of The World. 27th October 2017, https://fotw.info/flags/py%7D.html. Accessed 26th February, 2018.
OEC. Paraguay. 2018, https://atlas.media.mit.edu/en/profile/country/pry/. Accessed 26th February, 2018.
Trading Economics. Ease of Doing Business in Paraguay. 2018, https://tradingeconomics.com/paraguay/ease-of-doing-business. Accessed 26th February, 2018.
SELA. What is SELA. 2018, http://www.sela.org/en/what-is-sela/. Accessed 26th February, 2018.
UN Comtrade a. Clothing and Accessories. 2018, https://comtrade.un.org/db/mr/daCommoditiesResults.aspx?px=S3&cc=84. Accessed 26th February, 2018.
UN Comtrade b. Othr, Textile Apparel, Nes. 2018, https://comtrade.un.org/db/mr/daCommoditiesResults.aspx?px=S3&cc=845. Accessed 26th February, 2018.
USA.gov. Branches of Government. 2018, https://www.usa.gov/branches-of-government. Accessed 26th February, 2018.
Sawe, Benjamin. What Type of Government Does Paraguay Have? Worldatlas.25th April, 2017, www.worldatlas.com/articles/what-type-of-government-does-paraguay-have.html. Accessed 26th February, 2018.