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Accelerating Paraguay’s International Integration Through Enhanced Trade, Investment and Competition Policies (Inglés)

This report seeks to inform the policy dialogue on how to accelerate Paraguay’s international economic integration and in turn its medium- and long-term growth prospects. It benchmarks Paraguay’s global integration; analyzes trade, investment and competition policies and the quality of related institutions; and provides recommendations for strengthening them and accelerating the country’s global connection. Chapter 2 benchmarks Paraguay’s trade outcomes along several dimensions, including export diversification, quality upgrading and export survival, and Chapter 3 follows with an analysis of how trade policies and the quality of the institutional framework are affecting trade performance and identifies opportunities for improvements. It also estimates the impact of the MERCOSUR-European Union (EU) Free Trade Agreement on Paraguay. Chapter 4 focuses on FDI patterns and the strengths and shortcomings of the supporting FDI policy framework to help integrate in regional and global value chains. Chapter 5 examines competition challenges in Paraguay’s markets that could be affecting trade and FDI attraction and provides recommendations for strengthening competition policies and institutions. The preparation of this report has benefitted from the analysis of multiple data sources as well as extensive consultations with stakeholders from the private and public sectors.

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