paraguay
drinking water to the world for 200 years. Environmentalist
suggests, fresh water will become critical in under 20 years.
Paraguay has a vast surplus of it, which along with convenient
climate creates great opportunities for the production of
agricultural products.
The other large area of cooperation is the manufacturing
of agricultural equipment. Locating operations in Paraguay
could support the needs of not only a demanding internal
agricultural industry but also cater to other neighbouring
countries. With a skilled, young population and preferential
business & taxation system, Paraguay is a correct destination
for agricultural companies in South America.
Paraguay is the 2nd largest exporter of stevia in the world
and the production is expected to rise. There is a requirement
for investment in a factory for crystallisation process, which
certainly could be fulfi lled by Indian enterprises.
H.E. Fleming Raul Duarte Ramos presenting his credentials to the
President, Ram Nath Kovind, at Rashtrapati Bhavan, in New Delhi on
February 20, 2018.
Q
Sh
Share
your views on the expanded India-MERCOSUR
Preferential Trade Agreement (PTA).
Pr
This instrument of System of Preferences like the one
in force with the European Union and the United States of
America, adds to the signifi cant increase of the Paraguayan
exports to the aforementioned market. The aim of this
framework agreement is to expand and strengthen the existing
relations between MERCOSUR and India and promote
the expansion of Trade by granting reciprocal fi xed tariff
preference. Thanks to PTA, trade exchange between India
and Paraguay will rise further, and later lead to the Free Trade
Agreement between both countries.
The off er list of MERCOSUR and India contains around
500 products at present, that could be expanded to 2,000 items.
The opportunities off ered by the Indian market would allow
Paraguay the expansion of its production scales for exportable
goods, discovery of new markets, improvement of technology,
introduction of innovation based on the MERCOSUR
framework agreement, which allows Paraguay to improve
the entry of its products into the Asian market through India
and establish economic and business cooperation.
Q
How do you see agriculture cooperation between the
two countries?
tw
Paraguay has untapped opportunities in the agricultural
sector.
sec The country has highly fertile land and produces nine
times the food it consumes. The hydropower, unique in the
world strength of the country off ers a base to something
very important: freshwater reserves, the Guarani aquifer, is
the second largest known aquifer system in the world. It is
said that this vast underground reservoir could supply fresh
20 • PARAGUAY 2019
Q
How
Ho is your country committed to provide a conducive
environment
for investors?
nv
The
Government
of Paraguay has been prioritising
T
innovation, connectivity, skills building and social progress,
making these areas important levers for solid and lasting
growth in the country. Also, large investments were also made
to improve infrastructure.
Paraguay off ers a stable economic & business environment
and the most aff ordable low-tax solutions in the MERCOSUR
region. The corporate income tax is 10%, the dividend
income tax is 5% and VAT is just 10%. Moreover, many
special investment attraction regimes were introduced like
the new Investment Incentive Law 60/90, that provides
tax exemptions for the import of capital goods and VAT
exemptions for the purchase of nationally produced capital
goods, for example.
It is important to mention that, Paraguay accounts for
the largest number of young people in the region, 70%
of the population is an average 35 years. Along with the
stable political situation, business-friendly environment and
sustained growth rate in times of economic diffi culties around
the world, Paraguay is undoubtedly a secure investment
destination, that is worth considering.
Q
Le
Leading
companies like TCS, Aditya Birla Group, UPL,
Ma
Mahindra,
Hero MotoCorp, Mahindra amongst others
ha established operations in the region. Comment on
have
how you eye to bring in more of Indian investment to
your country.
Thanks to its privileged strategic geographical location
and preferential taxation system, the country has already
attracted numerous investors. The ease of doing business in
Paraguay has engaged large industries and some of them have
already shifted their operations to Paraguay. The position of
the country in the region and the world is rising. Numbers