SPECIAL REPORT
What is the Maquila Regime?
It is a system in which goods are produced and services are
provided for the international market and the main objectives
include industrial development, employment generation and
increased exports. The production of products or provision
of services is made by company legally established in
Paraguayan territory, which is the Maquila Company, for and
on behalf of a company domiciled abroad, which is the Head
Offi ce according to the Maquila Contract.
Directed by the Ministry of Industry and Trade, the
National Council of the Export Maquila Industry (CNIME)
is the offi cial promoter of the Maquila policies in Paraguay.
There are four more State institutions: Ministry of Finance,
Ministry of Foreign Aff airs, Central Bank of Paraguay and
Technical Planning State Offi ce.
Space Cooperation
In March, at the bilateral meeting between Vice President
M Venkaiah Naidu and his Paraguayan counterpart Vice
President, Hugo Velázquez, India off ered that both Indian
Space Research Organisation (ISRO) and the space agency
of Paraguay could cooperate in: resource mapping; earth
observation data sharing; manufacturing and launching
satellites on commercial basis; establishing a ground
station to receive, process and disseminate data from
Indian Remote Sensing satellites for use in various remote
sensing applications. Space agencies of both countries
must collaborate on training related to manufacturing
small satellite, and customised training on specifi c areas of
space technology applications including natural resources
assessment and disaster management support. Paraguay
created its Space Agency in 2014 and, last January defi ned
its space policy. In this initial stage, international cooperation
initiatives are essential to promote capacity building and
technology transfers.
China has been off ering competitive satellite construction
and launch services to various South American countries and
countries like Venezuela and Bolivia have launched their
fi rst satellites with Chinese cooperation. However, Paraguay
does not maintain offi cial relations with China; this is an
opportunity for India to become a strategic partner to boost
its space program at low cost.
Both countries have decided to seek new areas for
cooperation including Hydel and solar power, health including
traditional medicine, and pharmaceuticals, Information
and Communication Technology which would open more
opportunities for the youth in that country.
For its food security, contractual farming in Paraguay is
one of the options that India can explore. India has off ered
agricultural machinery that can help the farmers as well as
new technologies that can help improve the food chain there.
As a South American country, its Agriculture based economy
mainly focuses on agribusiness and cattle ranching and is the
4th largest exporter of soya beans in the world.
Besides seeking cooperation in developing small electric
plants for clean energy, it is seeking cooperation from Indian
companies to participate in several infrastructure projects includ-
ing airports, railways, roads and transportation as that will help
in not only establishing good connectivity but also improving
trade and movement of goods to various countries in the region.
While Paraguay’s global export is recorded at $9.04 billion
by the end of 2018, exports to India were recorded at $166.90
Million in 2017 - 2018. The bilateral Trade graph shows the
import and export between India and Paraguay from 2013
to 2018. India has recorded $168.43 Million export value
product to Paraguay in 2017 - 2018.
BILATERAL TRADE (INDIA - PARAGUAY)
Both countries have
decided to seek new
areas for cooperation
including Hydel and solar
power, health including
traditional medicine, and
pharmaceuticals, Information
and Communication
Technology which would open
more opportunities for the
youth in that country.
Source: Atlassons Business Services Private Limited
PARAGUAY 2019 • 9