Paraguay: The Heart of America.
The Republic of Paraguay is located in the heart of South America, having Brazil, Argentina and Bolivia as neighboring countries.
Uruguay along with the cited countries form the Common Market of the South (MERCOSUR), a regional integrational block founded in 1991 as a free trade zone customs union, to be evolved in a common market, which follows in size to the European Union and the North American Free Trade Agreement (NAFTA).
Historically, its condition as a landlocked country has been an obstacle to its development, Nevertheless, its centric geographical location now allows the Capital (Asuncion) to be the only city in the Southern Cone at just two hours flight from the major markets on the region such as San Paolo, Rio de Janeiro, Buenos Aires, Montevideo, Santa Cruz de la Sierra and Santiago de Chile.
With abundant workforce composed mainly by a population who’s 70% is under 30 years old as well as its privileged nature and weather, Paraguay has traditionally distinguished itself as a major producer of agricultural items such as soybean, cotton, cereal grains and livestock of high quality. The 21st Century has seen the country to begin a gradual process of industrial development based on the Maquila Regime (outsourcing), the lowest manufacturing costs within the MERCOSUR and its high availability of electricity, bearing the status of the biggest exporter of hydroelectric energy in the world.
One of the most remarkable attributes of the Paraguayan economy comparing with other Latin American countries is its macroeconomic stability, having maintained the same currency (Guarani) for more than thirty years, inflation within one digit and the lowest external debt in the sub region. The Paraguayan economy is one with major commercial openness to foreign trade in the region with an average tariff level at 6,3 % (2004); Fiscal pressure is the lowest within MERCOSUR after the 2005 reforms which reduced the Company income tax at 10 %. Moreover, our legislation guarantees special incentives for investments (Law 60/90) and national treatment to foreign individuals and companies.
The recent establishment of sectorial boards (www.rediex.com.py) formed by both public and private actors has brought a more foreseeable and efficient framework of the economy. The commitments, tasks and deadlines agreed for diverse sectors at a national level to improve competitiveness and business environment have already paid their results in the short term.
We then invite our clients to contact with ZACARIAS & FERNANDEZ to assist you in the discovery of a country full of opportunities!
More photos from Paraguay
