Paraguay has long been on the minds of North Dakota used-machinery and construction manufacturers, but with a lack of publicly-available information, the market has seemed untouchable. This May, North Dakota will make its official push into Paraguay at the Expo Santa Rita trade show. With statistics showing an over 500% growth in Paraguay’s import of used equipment from the U.S. since 2009 and strong support from the Paraguayan government to improve agriculture in the country, the market holds exciting potential for North Dakota exporters.
Three North Dakota companies along with the North Dakota Trade Office (NDTO) and the U.S. Commercial Service will attend the show and meet with potential Paraguayan buyers. Expo Santa Rita is the country’s largest, hands-on agricultural exposition. In 2011, participating companies exceeded $150 million in sales.
NDTO began to closely-monitor Paraguay’s trade habits in 2010 and quickly noticed an influx of used agriculture and construction equipment going into the market. The U.S. exported $629,000 of used equipment to Paraguay in 2009, followed by $1.7 million in 2010 and $3.2 million in 2011 – an over 500% increase in two years.
Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries. The country’s free commercial zone – Ciudad del Este – is the third most important in the world, trailing behind Miami and Hong Kong.
A large percentage of the population, especially in rural areas, derives its living from agricultural activity. Paraguay is the 4th largest soy producer in the world and the 8th largest beef exporter. The Paraguayan economy is expected to grow 11.3% in 2013, propped by its strong agriculture economy.
Expo Santa Rita will take place May 3-12 in Asunción, Paraguay.
For more information on Paraguay or to explore your company’s opportunities in the Paraguayan market, contact Tom Wollin at tom@ndto.com