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Paraguay Updates General Trade Agreements in Regional Commercial Framework

Paraguay participated in a regional trade agreement session with Argentina, Brazil, and Uruguay, notifying updates on the application of their regional commercial agreement

PARAGUAY – GENERAL TRADE AGREEMENTS

Paraguay Updates Regional Trade Rules with Neighbors

Notifications confirm alignment on commercial agreements with Argentina, Brazil, and Uruguay.

What changed

Regional commercial agreement updates notified regarding application with Argentina, Brazil, and Uruguay.

Supplementary trade documentation issued under the framework covering general trade provisions.

No specific product restrictions detailed in the available records regarding market access changes.

Who it affects

Traders with Argentina, Brazil, and Uruguay must review updated application of regional commercial rules.

Regional trade participants should consult supplementary documents for specific updates.

Paraguay — regional commercial agreement updates

Compliance Analysis: Updates to Paraguay’s Regional Trade Agreement Under MERCOSUR

Paraguay, as a member of MERCOSUR, has incorporated temporary tariff reductions into its regional trade framework through Economic Complementation Agreement No. 18 (AAP.CE 18). These changes, adopted via MERCOSUR Trade Commission Directives, grant Argentina specific tariff concessions on select goods for supply-related reasons. The updates are legally binding under Paraguay’s obligations as a MERCOSUR member and were formally notified to the WTO under the Transparency Mechanism for Regional Trade Agreements (WT/L/671, paragraph 14)1, 2, 3.

Regulation Analysis

The following table summarizes the key tariff modifications applicable to Paraguay under AAP.CE 18.190, as incorporated through MERCOSUR Directives:

Regulation (Apéndice)Key RequirementDeadline/ThresholdAuthority
Apéndice 842Incorporates MERCOSUR Directive 33/24, granting Argentina a 2% tariff rate (reduced from the standard MERCOSUR Common External Tariff) for 2,059 tons of HS code 1702.90.00 (other sugars).365 days (26 May 2024 – 25 May 2025)MERCOSUR Trade Commission
Apéndice 854Incorporates MERCOSUR Directive 34/24, granting Argentina a 2% tariff rate for 480 tons of HS code 1210.20.10 (hops).365 days (entry into force not specified)MERCOSUR Trade Commission
Apéndice 865Incorporates MERCOSUR Directive 42/24, granting Argentina a 2% tariff rate for 2,500 tons of HS code 7606.12.90 (aluminum plates/sheets).365 days (11 Aug 2024 – 10 Aug 2025)MERCOSUR Trade Commission
Apéndice 871Incorporates MERCOSUR Directive 62/24, granting Argentina a 0% tariff rate for 2,944 liters of HS code 3002.49.92 (unspecified pharmaceutical products).365 days (4 Sep 2024 – 3 Sep 2025)MERCOSUR Trade Commission
Apéndice 886Incorporates MERCOSUR Directive 63/24, granting Argentina a 2% tariff rate for 115 tons of HS code 1901.10.10 (preparations for infant use).365 days (4 Sep 2024 – 3 Sep 2025)MERCOSUR Trade Commission
Apéndice 897Incorporates MERCOSUR Directive 64/24, granting Argentina a 2% tariff rate for 68 tons of HS code 1901.10.10 (same product as Apéndice 88, but separate quota).365 days (4 Sep 2024 – 3 Sep 2025)MERCOSUR Trade Commission
Apéndice 908Incorporates MERCOSUR Directive 65/24, granting Argentina a 2% tariff rate for 100 tons of HS code 2106.90.90 (food preparations).365 days (4 Sep 2024 – 3 Sep 2025)MERCOSUR Trade Commission
Apéndice 923Incorporates MERCOSUR Directive 74/24, granting Argentina a 0% tariff rate for 7,500 units of HS code 3004.90.19 (medicaments).360 days (29 Sep 2024 – 28 Sep 2025)MERCOSUR Trade Commission
Apéndice 999Incorporates MERCOSUR Directive 108/24, granting Argentina a 2% tariff rate for 200,000 units of HS code 3304.99.90 (cosmetic/beauty preparations).365 days (entry into force not specified)MERCOSUR Trade Commission

Legal Framework and Compliance Requirements for Paraguay

  1. Scope of Application:
    • The tariff reductions apply exclusively to imports from Argentina under the specified HS codes and quotas1, 2, 3. Paraguay must ensure these concessions are reflected in its national tariff schedules and customs procedures.
    • The measures are temporary, with durations ranging from 360 to 365 days from their respective entry-into-force dates1, 3.
  1. Authority and Adoption:
    • The MERCOSUR Trade Commission (Comisión de Comercio del MERCOSUR) issued the Directives, which were subsequently incorporated into AAP.CE 18.190 via Additional Protocol No. 1901, 2.
    • Paraguay’s Ministry of Industry and Commerce (MIC) and Customs Directorate (DNA) are responsible for implementing these changes domestically, including updating the Paraguayan Tariff Nomenclature (NAP)1.
  1. Notification Obligations:
    • Paraguay, alongside other MERCOSUR members, notified the WTO of these changes on 6 November 2025 under the Transparency Mechanism for Regional Trade Agreements (WT/L/671, paragraph 14)1, 2.
    • The full texts of the Directives and associated annexes are available on the Latin American Integration Association (ALADI) website1, 2.
  1. Enforcement and Monitoring:
    • Paraguay must ensure that quotas are not exceeded and that the reduced tariff rates are applied only to eligible imports within the specified periods1, 3.
    • Non-compliance with MERCOSUR Directives may trigger dispute resolution mechanisms under MERCOSUR’s Olivos Protocol1.

Summary Answer

Paraguay has incorporated nine temporary tariff reductions into its regional trade framework under Economic Complementation Agreement No. 18 (AAP.CE 18.190), as mandated by MERCOSUR Directives issued in 2024. These measures grant Argentina 0% or 2% tariff rates on specific goods (e.g., pharmaceuticals, food preparations, and aluminum products) for 360–365 days, subject to quantitative quotas. The changes were formally notified to the WTO on 6 November 2025 and are binding on Paraguay as a MERCOSUR member1, 9, 2, 8, 4, 3, 6, 7, 5. Implementation requires updates to Paraguay’s national tariff schedules and customs procedures, with oversight by the Ministry of Industry and Commerce (MIC) and Customs Directorate (DNA).

Sources

  1. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S219.pdf&Open=True
  2. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S216.pdf&Open=True
  3. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S224.pdf&Open=True
  4. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S217.pdf&Open=True
  5. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S218.pdf&Open=True
  6. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales)- Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S220.pdf&Open=True
  7. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S221.pdf&Open=True
  8. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S222.pdf&Open=True
  9. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S231.pdf&Open=True
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