BUSINESS IN PARAGUAY
Paraguay is strategically located at the heart of South America, which together with the good connectivity network of road and air routes with its neighbouring countries makes Paraguay a privileged location for production and redistribution of goods and services in the region. The Paraguayan economy's main sector is agricultural production, closely followed by service and industrial sectors. Paraguay is the largest single exporter of electricity (hydro power) in the world, offering cheap renewable energy to its neighbours and also the fourth largest exporter of soya bean in the world . The population is comprised by a young and educated workforce (circa 50% of the population is under 35 y.o.)and the GDP per capita per annum is of 4.900 USD (est. 2010).

MERCOSUR: Southern Common Market, Customs Union is the largest regional block in Latin America, is comprised of Argentina, Brazil, Paraguay and Uruguay, with an estimated population of 270 million inhabitants and an average GDP per capita of 10,800 USD, MERCOSUR is an attractive destination for investment, imports and exports. Paraguay has commercial and industrial zones that aims to the exchange of goods and services with the region and the world.

Major Trade Agreements: MERCOSUR has preferential agreements with South American countries (Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela), which allows access to MERCOSUR products to any of these countries, with special tariff rates.

Likewise, since 2009, the Preferential Trade Agreement between MERCOSUR and India has entered into force. This includes a list of over 900 products that can be imported/exported under a preferential tariff scheme. MERCOSUR and India currently are working to broaden and deepen the framework agreement so as to boost exchanges between the two regions

Names and contacts of the major Chambers of Commerce in Paraguay:

REDIEX - Network of Investment and Export of Paraguay Ministry of Industry and Commerce www.rediex.gov.py

Center of Importers of Paraguay www.cip.org.py

Chamber of Producers and Exporters of Cereals and Oilseeds (CAPECO) www.capeco.org.py

Paraguayan Chamber of Oilseed Processors (CAPPRO) www.cappro.org.py/es/

Chamber of Producers of Goods and Services (CAPRO) www.capro.org.py

Union of Guilds of Production www.ugp.org.py

Industrial Union of Paraguay www.uip.org.py

Federation of Industrial Production and Trade (FEPRINCO) feprinco@quanta.com.py