Country Guide
Exporting from Paraguay to Brazil
Mercosur co-founder with 0% duty access. Electricity from Itaipu, grains, beef, and maquila manufacturing drive bilateral trade.
Mercosur member: 0% dutyParaguay is a founding member of Mercosur and Brazil's 18th largest import origin. The trade relationship is unique: the single largest item is electrical energy from the Itaipu hydroelectric dam (jointly owned by Brazil and Paraguay). Beyond energy, Paraguay exports grains, beef, and wire harnesses manufactured in its maquila sector. All originating products enter Brazil duty-free under Mercosur.
Mercosur member: full duty-free access
As a Mercosur founding member, Paraguayan originating products enter Brazil at 0% import duty. Rules of Origin must be met — products must be substantially produced or transformed in Paraguay, not merely transshipped from third countries.
Trade Data: Paraguay → Brazil
Source: UN Comtrade 2023Top Paraguayan exports to Brazil by value
2023 FOB values in USD| # | Product | 2023 Value | |
|---|---|---|---|
| 1 | 2716.00Electrical energy | $1.0B | Duties → |
| 2 | 1005.90Cereals; maize (corn), other than seed | $269.2M | Duties → |
| 3 | 8544.30Insulated electric conductors; ignition wiring sets and other wiring sets of a k... | $220.0M | Duties → |
| 4 | 1006.30Cereals; rice, semi-milled or wholly milled, whether or not polished or glazed | $179.2M | Duties → |
| 5 | 0201.30Meat; of bovine animals, boneless cuts, fresh or chilled | $125.0M | Duties → |
| 6 | 1006.20Cereals; husked (brown) rice | $124.5M | Duties → |
| 7 | 1201.90Soya beans; other than seed, whether or not broken | $96.4M | Duties → |
| 8 | 1001.99Cereals; wheat and meslin, other than durum wheat, other than seed | $53.2M | Duties → |
| 9 | 0402.21Dairy produce; milk and cream, concentrated, not containing added sugar or other... | $47.0M | Duties → |
| 10 | 3808.93Herbicides, anti-sprouting products and plant-growth regulators; other than cont... | $42.4M | Duties → |
| 11 | 0202.30Meat; of bovine animals, boneless cuts, frozen | $37.7M | Duties → |
| 12 | 2207.10Undenatured ethyl alcohol; of an alcoholic strength by volume of 80% vol. or hig... | $37.6M | Duties → |
| 13 | 3923.30Plastics; carboys, bottles, flasks and similar articles, for the conveyance or p... | $36.0M | Duties → |
| 14 | 7602.00Aluminium; waste and scrap | $35.8M | Duties → |
| 15 | 6301.40Blankets (other than electric blankets) and travelling rugs; of synthetic fibres | $34.9M | Duties → |
| 16 | 1502.10Tallow; other than those of heading 1503 | $29.8M | Duties → |
| 17 | 3808.69Insecticides; containing goods named in Subheading Note 2 to this Chapter, put u... | $27.8M | Duties → |
| 18 | 4805.92Paper and paperboard; uncoated, weight more than 150g/m2 but less than 225 g/m2,... | $20.8M | Duties → |
| 19 | 7404.00Copper; waste and scrap | $20.3M | Duties → |
| 20 | 6115.96Hosiery and footwear; without applied soles, of synthetic fibres, knitted or cro... | $18.7M | Duties → |
Values in USD, FOB (Paraguay port of departure). Trend compares 2023 vs 2022. Click any HS code for Brazil duty rates and Ex-Tarifário status.
Key product categories
| Product | MFN duty | Mercosur rate | |
|---|---|---|---|
| Electrical energy Itaipu hydroelectric power | 0% | Mercosur 0% | View HS 27 → |
| Cereals Corn, rice (husked, semi-milled) | 0% | Mercosur 0% | View HS 10 → |
| Electrical equipment Wire harnesses, ignition wiring | 0% | Mercosur 0% | View HS 85 → |
| Meat Boneless beef, frozen beef | 0% | Mercosur 0% | View HS 02 → |
| Oilseeds Soybeans | 0% | Mercosur 0% | View HS 12 → |
| Dairy Milk powder, butter | 0% | Mercosur 0% | View HS 04 → |
| Chemicals Herbicides, pesticides | 0% | Mercosur 0% | View HS 38 → |
Itaipu: the energy bond
The Itaipu hydroelectric dam on the Paraná River is the world's second-largest operating hydroelectric facility:
- Over $2B annually in electricity sales to Brazil — the single largest bilateral trade item
- Joint ownership: 50/50 between Brazil and Paraguay, with most of Paraguay's share sold to Brazil
- Treaty-governed: pricing is set by the Itaipu Treaty, not market rates
- Renegotiation: the Itaipu Treaty's financial annex was renegotiated in recent years
Maquila manufacturing: wire harnesses
Paraguay's maquila regime has attracted foreign manufacturers, particularly in the automotive supply chain:
- Wire harnesses (HS 8544): over $440M — automotive wiring assemblies produced by Japanese and Korean companies in Paraguay for Brazilian automakers
- Mercosur origin: products manufactured under the maquila regime qualify for Mercosur 0% duty
- Competitive advantage: lower labor costs than Brazil, combined with duty-free access
Agriculture: grains, beef, and dairy
- Corn and rice: over $1.2B combined — complementary supply for Brazil's food industry
- Soybeans: Paraguay is the world's 4th largest soybean producer
- Beef: Paraguayan boneless beef exports growing to Brazilian market
- Milk powder: complementary dairy supply
- MAPA: phytosanitary and veterinary certificates required for all agricultural products
MAPA-authorized establishments
Source: SIGSIF/DIPOA38 Paraguayan facilities are authorized by Brazil's Ministry of Agriculture to export animal products.
Rules of Origin considerations
Paraguay's border with Brazil is a significant transit corridor. Brazilian customs actively verifies origin:
- Triangulation risk: goods from China or other countries transshipped through Paraguay without substantial transformation do NOT qualify for Mercosur preferences
- Certificate of Origin: required for claiming Mercosur 0% duty
- Ciudad del Este: a major commercial hub where origin verification is closely scrutinized
Practical next steps
- Find your product's NCM code
- Confirm Mercosur Rules of Origin compliance
- Obtain Certificate of Origin from Paraguayan Chamber of Commerce
- Calculate the full landed cost — set import duty to 0% for Mercosur-originating goods