AGP Executive Report

National Budget: Paraguay’s Economy Minister Oscar Lovera submitted a proposed 2027 General National Budget to Congress totaling ₲166.3 trillion (about US$27.7bn), up 11.5% from 2026, with major allocations for health (₲18.2tn), education (₲10.4tn), social programs for vulnerable children (₲65bn), and funding for medicines and teacher pay. Beef Trade & Diplomacy: Paraguay’s ambassador to Israel, Alejandro Rubin Cymerman, says Paraguayan beef exports to Israel hit US$220m in 2025 and could reach around US$300m in 2026, helped by private-sector growth and efforts to make the “Paraguay” origin visible in Israeli retail; he also points to cooperation beyond trade, including water and innovation. EU Market Access Risk for Mercosur: The EU announced it will suspend imports of Brazilian meat and other animal products from Thursday over antibiotic compliance guarantees, with poultry possibly resuming sooner after audits, but beef likely taking longer—an issue that could ripple across Mercosur buyers including Paraguay. Cybercrime Watch: Brazilian financial and retail firms are facing a fraud campaign by threat actor “BREEZE COMET,” which reportedly breaches payment platforms and executes fraudulent transfers in waves, targeting banks, processors, fintechs, and banking-software providers. Health & Pharma: Knight Therapeutics received Colombian regulatory approval for TAVALISSE® (fostamatinib) for adult chronic immune thrombocytopenia, with the company noting it has also been pursuing approvals across Latin America including Paraguay. Policy & Trade Context: India urged Brazil to adopt more predictable regulatory pathways to boost pharma exports and agreed to move ahead on expanding the India-Mercosur trade pact’s scope. Sports Rights With Regional Links: SBS secured exclusive rights to broadcast the 2030 FIFA World Cup in Australia, with opening matches in Argentina, Paraguay, and Uruguay before the tournament moves to Morocco, Portugal, and Spain.

Paraguay-EU Trade Watch: The EU will suspend imports of Brazilian meat and other animal products from Thursday over antibiotic-compliance guarantees, a move that could ripple across Mercosur supply chains that include Paraguay. Beef Market Signals: In the US, an executive order will allow 300,000 tons of foreign ground beef imports under a tariff-rate quota, with Paraguay named among the countries in scope—an important pricing signal for regional exporters. Paraguay-Israel Business Push: Paraguay’s ambassador to Israel says exports hit $220M in 2025 and could reach ~$300M in 2026, while embassy efforts focus on turning political support into practical trade and cooperation, including beef visibility in supermarkets. Health & Pharma Access: Knight Therapeutics received Colombian regulatory approval for TAVALISSE for chronic immune thrombocytopenia, with the company noting submissions across Latin America including Paraguay. Regional Sports Economy: FIBA confirmed 16 clubs for the 2026 Liga Sudamericana de Baloncesto, with Paraguay’s Olimpia Kings and San José among the participants. Cybercrime Alert (Regional): Brazilian payment and e-commerce firms are being targeted by “Breeze Comet,” highlighting ongoing fraud risks across the region’s financial rails.

Evangelical Community Recognition: Paraguay’s Senate approved a bill establishing an annual national Evangelical Church Day on the last Sunday of October, aimed at highlighting the churches’ historical, cultural, social, educational, humanitarian and spiritual contributions; it is not a public holiday and won’t be mandatory in the school calendar. EU Trade Shock for Mercosur Meat: The EU will suspend imports of Brazilian meat and other animal products from Thursday after Brazil failed to provide enough guarantees on animal health rules, including antibiotic-use compliance; poultry could resume within weeks if an audit goes well, but beef may take longer—an issue that matters for Paraguay’s regional beef trade. Paraguay-Israel Beef Push: Paraguay’s ambassador to Israel, Alejandro Rubin Cymerman, says Paraguayan beef exports hit $220m in 2025 and could reach about $300m in 2026, helped by efforts to boost visibility of Paraguayan origin for Israeli buyers. World Cup Media Rights With Paraguay in the Host Mix: SBS confirmed it will retain exclusive broadcast rights for the 2030 FIFA World Cup, with opening matches in Argentina, Paraguay and Uruguay before the tournament moves to Morocco, Portugal and Spain—keeping Paraguay in the spotlight for regional football tourism and business. Motorsport Growth in Paraguay: President Santiago Peña joined FIA President Mohammed Ben Sulayem at Rally del Paraguay, highlighting motorsport’s expansion and the event’s growing fan base, with 300,000 attendees reported. Public Procurement Modernization: A draft set of 2026 public procurement regulations signals a shift toward more structured, data-driven planning and supplier databases, pushing institutions away from manual compliance toward smarter automation. Regional Health Capacity Building: PAHO/WHO ran a bioinformatics course in Panama for genomic surveillance specialists, including participants from Paraguay, to strengthen how genomic data turns into public health decisions. Asunción Networking Scene: The Asunción Times profiled Mariana Martínez, a PhD biologist and microbiology lab head, reflecting the city’s growing mix of local expertise and international community around business and ideas.

UN Diplomacy & Energy Risk: UNGA 2026 kicks off Sept. 22 with Trump expected to dominate the agenda as the US-Iran war keeps the Strait of Hormuz largely closed, raising economic pressure and sharpening calls for more UN support. World Cup Media Rights (Paraguay angle): SBS secured exclusive free-to-air rights for the 2030 FIFA World Cup, with opening matches in Argentina, Paraguay and Uruguay—boosting regional visibility for Paraguay as a host. EU Trade Shock for Mercosur Meat: The EU will suspend imports of Brazilian meat and other animal products from Thursday over animal-health and antibiotic rules, with poultry possibly resuming sooner than beef—an indirect risk for Mercosur exporters including Paraguay. Pharma Trade Push (Mercosur includes Paraguay): India urged Brazil to adopt more predictable pharma regulation to expand market access, and both sides discussed early steps to broaden the India-Mercosur trade pact. Paraguay Health Labor Fallout: Nearly 300 public-sector specialist doctors in Paraguay plan mass resignations after a five-day strike over wages, supplies and contract terms, threatening pediatric surgery services. Paraguay Investment & Residency: Asunción’s Investing in Paraguay Forum returns Sept. 7, focusing on sectors eligible for the Paraguay Investor Pass (stock market, real estate, tourism) tied to immediate permanent residency. Weight-loss Drug Smuggling Spillover: Reuters reports Brazil’s weight-loss drug black market is being fed by seizures of tirzepatide/semaglutide shipments arriving from Paraguay, highlighting enforcement and health risks. Motorsport Growth: Paraguay’s rally spotlight continues as FIA President Ben Sulayem and President Peña mark a “new era” for rallying, with major fan turnout and international attention. Sports Business Note: Liga Sudamericana de Baloncesto 2026 confirms Olimpia Kings and San José as Paraguay’s teams, starting Oct. 2.

Paraguay Investor Spotlight: The Asunción Times’ Investing in Paraguay Forum #3 returns Sept. 7, focusing on the Paraguay Investor Pass sectors—stock market, real estate and tourism—where qualifying investments can unlock immediate permanent residency (US$150k tourism, US$200k real estate or listed securities). Trade & Market Access: India is pushing for a more predictable regulatory path in Brazil for pharma exports and both sides are working to expand the India–Mercosur trade pact; Argentina also committed to easing entry barriers for Indian pharma. Border Drugs Crackdown: Brazil’s Federal Revenue says seizures of GLP-1 weight-loss drugs surged along the Brazil–Paraguay border, with smugglers using the Friendship Bridge route and health officials warning about unsafe, unapproved injections. Exports Diversify: Paraguay says 75 products reached 43 new destinations in the first seven months of 2026, including first shipments to Nepal. Rally Paraguay Boost: FIA and Paraguay leaders highlighted Rally del Paraguay’s growth, with about 300,000 fans (+42.8% vs 2025), while the event also saw a serious crash that led to cancellation of a penultimate stage. Tech for Students: Paraguayan entrepreneur Ana Merlo launched FellowBridge, an AI platform to match students with scholarships based on profile and eligibility.

Rally Paraguay Wrap: Sami Pajari made WRC history with a third straight win in Paraguay, cutting Elfyn Evans’ lead to 20 points, while Hyundai’s Hayden Paddon finished second and Adrien Fourmaux took third—Hyundai still trails Toyota in the Manufacturers’ standings. Safety Disruption: A violent crash involving Takamoto Katsuta forced organizers to cancel the penultimate stage; Katsuta and co-driver Aaron Johnston were taken to hospital for checks, though Toyota says they’re OK. Motorsport Growth: Paraguay’s President Santiago Peña and FIA chief Mohammed Ben Sulayem celebrated the rally’s momentum, with about 300,000 fans (up 42.8% vs 2025) and a new FIA commercial-rights push aimed at boosting investment from top-level events to grassroots. Tax Boost: Paraguay’s National Directorate of Tax Revenues says collections rose by ₲11.5 trillion (about US$1.53bn) in three years after merging tax and customs, lifting the tax-to-GDP ratio from 9.1% to 11.2% by end-2025. Air Connectivity: Avianca will add daily flights between Asunción and Bogotá from late October 2026, expanding capacity with Airbus A320s. Trade Diversification: Paraguay reports 75 products reaching 43 new destinations in the first seven months of 2026, including first shipments to Nepal. Public Health Pressure: Paraguay’s public-sector doctors ended a five-day strike without a deal; at the main pediatric hospital, 86% of specialists reportedly announced resignations.

Tax Boost: Paraguay’s National Directorate of Tax Revenues (DNIT) says it collected an extra ₲11.5 trillion (about US$1.53bn) over three years, lifting the tax-to-GDP ratio from 9.1% to 11.2% by end-2025, after merging tax and customs into one modernized agency. Air Connectivity: Avianca will start daily flights between Asunción and Bogotá from late October 2026, adding capacity with Airbus A320s (180 seats) to strengthen regional links. Exports Push: Paraguay reports 75 products reaching 43 new destinations in the first seven months of 2026, including first shipments to Nepal (sunflower oil, mung beans, cotton fibre) and new biodiesel sales to Singapore. Border Drug Smuggling: Brazil says seizures of unauthorized weight-loss drugs along the Brazil–Paraguay border surged in 1H 2026, with 76,000+ pens/vials seized, as smugglers chase GLP-1 demand. Healthcare Labor Pressure: Paraguay’s public-sector doctors ended a five-day strike without a deal; at the main pediatric hospital, 86% of specialists reportedly announced resignations, warning of a worsening situation. Rally Paraguay: Rally Paraguay continues to deliver drama, with Sami Pajari leading after a tough start and stormy conditions affecting teams and equipment.

Tax Boost: Paraguay’s National Directorate of Tax Revenues (DNIT) says it collected an extra ₲11.5 trillion (about US$1.53B) in its first three years, lifting the tax-to-GDP ratio from 9.1% to 11.2% by end-2025, with tougher enforcement driving ₲1.6T+ in recoveries and hundreds of complaints tied to alleged fraudulent invoices. Aviation & Connectivity: Avianca will start daily flights between Asunción and Bogotá in late October 2026, adding capacity with Airbus A320s (180 seats) to strengthen regional connections. Healthcare Labor Pressure: Paraguay’s public-sector doctors ended a five-day strike without a government deal, as specialists at the main pediatric hospital announced mass resignations (86%), warning of further disruption. Energy & Mining Risk: Analysts warn bitcoin mining is consuming about 30% of Paraguay’s power, raising concerns about grid stress and potential crisis conditions by 2029 if contracts and hydrology don’t align. Trade & Markets: The U.S. temporarily waived out-of-quota beef tariffs for Brazil and Paraguay for 90 days starting Sept. 1, potentially easing costs for exporters. Local Commerce: Expo Yguazú opened with 100+ companies and free entry through Aug. 30, spotlighting business ties alongside the 65th anniversary of Yguazú and 90 years of Japanese immigration.

Tax Boost: Paraguay’s National Directorate of Tax Revenues (DNIT) says it collected an extra ₲11.5 trillion (about US$1.53bn) in its first three years, lifting the tax-to-GDP ratio from 9.1% to 11.2% by end-2025, after merging tax and customs into one agency. Aviation Connectivity: Avianca will start daily flights between Asunción and Bogotá in late October 2026, adding capacity with Airbus A320s (180 seats) to meet rising regional travel demand. Healthcare Labor Shock: Paraguay’s public-sector doctors ended a five-day strike without a deal, as specialists at the General Pediatric Hospital of Acosta Ñu announced mass resignations (141 of 164). Trade & Travel: Expo Yguazú opened in Yguazú with 100+ companies and free entry through Aug. 30, marking the district’s 65th anniversary and 90 years of Japanese immigration. Port Commerce: The temporary La Recova artisans’ space opens at Asunción Port’s cultural centre on Aug. 29, allowing restoration of the original building while vendors keep trading. Energy Watch: Analysts warn bitcoin mining already uses about 30% of Paraguay’s power, raising concerns about grid stress and a potential crisis by 2029.

US–Beef Trade: President Trump signed a 90-day tariff waiver for up to 300,000 tonnes of lean beef trimmings, with Brazil and Paraguay set to benefit while Argentina and Uruguay are excluded due to quota rules. Energy & Crypto: Analysts warn bitcoin mining is consuming about 30% of Paraguay’s power, raising fears of an energy crunch by 2029 as contracts with miners expire in 2027. Local Sports & Economy: WRC Rally Paraguay is drawing attention as crews expect brutal conditions—heavy rain could turn stages into a “second Safari”—while Hyundai’s Hayden Paddon took an early lead after a chaotic morning. Finance & Payments: Chilean fintech Global66 says it mobilized over US$3.5B in the first half of 2026, doubling regional volume and adding Paraguay as a new origin market. Defense & Aviation: Paraguay is reportedly negotiating with Taiwan to acquire F-5 fighters and AT-3 trainers, aiming for 10–15 aircraft starting as early as 2027. Agro-Exports: Paraguay’s petitgrain oil continues to stand out as “green gold,” supplying a large share of global petitgrain used in premium perfumes. Infrastructure & Culture: Asunción’s port redevelopment is set to create a US$6M entertainment hub, while EXPYFEST 2026 brings immersive tech art to the capital.

Energy & Mining: Analysts warn Paraguay’s growing bitcoin mining load is already consuming about 30% of national power, raising fears of an energy crunch by 2029 if hydrology stays favorable and if mining contracts—set to expire in 2027—aren’t extended. Trade & Tariffs: The U.S. is easing tariffs on lean beef trimmings to lower ground beef prices, but the move is stirring debate over country eligibility and whether Paraguay (among “other countries”) could benefit. Finance & Payments: Chilean fintech Global66 says it mobilized over US$3.5B in the first half of 2026, doubling year-on-year, and reports it has added Paraguay as a market of origin. Defense & Aviation: Paraguay is reportedly negotiating with Taiwan to restore a jet combat capability using F-5 fighters and AT-3 trainers, with 10–15 aircraft targeted from 2027. Agribusiness & Exports: Paraguay’s petitgrain “green gold” remains a major global perfume input, with the country supplying roughly 40%–70% of world output depending on segment. Security & Economy: Experts say illegal markets are expanding and becoming more organized across supply chains, calling for tighter coordination among enforcement, intelligence, regulators, and tax authorities.

Beef Trade Tensions: U.S. President Donald Trump signed a 90-day tariff relief plan for up to 300,000 tons of lean beef trimmings, with the White House saying it should lower ground beef prices—sparking pushback from U.S. ranchers and beef origin-labeling advocates who warn imports could blur consumer trust. Paraguay-Brazil Diplomacy: Paraguay renewed its push for Brazil to return the “Cañón Cristiano” and other War of the Triple Alliance trophies, using parliamentary diplomacy to “turn the page” on the conflict. Defense & Procurement: Paraguay is negotiating with Taiwan to potentially acquire F-5 fighter jets and AT-3 advanced trainers, aiming to rebuild jet combat capability starting around 2027. Sports & Business Spotlight: Orlando Gill, Paraguay’s World Cup standout goalkeeper, was unveiled by Lille in a deal reported at just over €4m. Rally Paraguay Watch: WRC crews are bracing for heavy rain that could make Rally Paraguay “almost a second Safari,” with new stages and slippery gravel conditions. Port Redevelopment: Asunción Port’s warehouses are being converted into a US$6m entertainment hub via a public-private partnership, with work targeted to finish before end-2026.

Mercosur trade push: Paraguay’s Chamber of Deputies approved the Mercosur–Singapore free trade agreement, with 234 votes in favor, cutting barriers for exports and expanding coverage to services, investments, e-commerce and public procurement. Port redevelopment: Asunción Port’s four disused warehouses are being converted into a US$6M entertainment hub via a public-private partnership, aiming to restart activity on the waterfront before end-2026. Agro-industry spotlight: Paraguay’s petitgrain oil is positioned as a “green gold” export, supplying an estimated 40%–70% of global petitgrain used by top perfume houses, with production concentrated in San Pedro and Cordillera. Health labor pressure: Paraguay’s public health professionals launched a 96-hour national strike over stalled talks on working conditions, including demands to reduce and equalize schedules to 12 weekly hours per contract. Crypto mining economics: HIVE Digital Technologies says hydro-powered mining in Paraguay can lift margins from 36% to 52% as Bitcoin rises from $60K to $80K, alongside strong quarterly revenue growth. Tourism & culture: EXPYFEST 2026 returns to Asunción with immersive tech art experiences, while Nueva Germania marked its 139th anniversary with a student parade and local infrastructure inaugurations.

Paraguay Business & Economy: Asunción Port Redevelopment: Four warehouses at Puerto de Asunción are being converted into a US$6M entertainment hub via a public-private partnership, with the port’s first major reactivation since 2012 and completion targeted before end-2026. Health & Labor: 96-hour doctors’ strike: Paraguay’s public health professionals began a 96-hour national strike over stalled talks on working conditions, including a push to reduce and equalize schedules to 12 weekly hours per contract, affecting outpatient care and non-urgent surgeries. Energy & Crypto Mining: HIVE margins tied to Paraguay hydro: HIVE Digital Technologies says hydro-powered mining in Paraguay could deliver mining margins rising from 36% at $60K Bitcoin to 52% at $80K, assuming 5-cent per kWh operating costs. Investment Migration: Residency ranking: A new analysis of Latin America’s investor-residency programs ranks Panama first, with Paraguay close behind (80.1), highlighting Paraguay’s “value for money.” Sports & Tourism: Rally del Paraguay WRC3: Indian driver Naveen Puligilla and co-driver Musa Sherif will race WRC3 from Aug. 27–30 in Paraguay, starting a back-to-back WRC campaign. Local Culture & Community: Guaraní food spotlight: Kivevé (andaí pumpkin stew) is being highlighted as a Guaraní-rooted seasonal staple.

Investment Migration: A new Global Citizen Solutions ranking of Latin America’s 11 residency programs puts Paraguay second for “value for money” (score 80.1), behind Panama, as foreign direct investment in the region hit $194B in 2025. Crypto & Energy: HIVE Digital Technologies says its hydro-powered Bitcoin mining in Paraguay can lift margins from 36% at $60K BTC to 52% at $80K, with Q1 FY2027 revenue up 73% year-on-year. Port & Real Estate: Asunción Port’s US$6M redevelopment will convert four warehouses into an entertainment hub via a public-private partnership, aiming to finish before end-2026. Labor & Health: Paraguay’s public health sector faces a 96-hour national strike over stalled talks on working conditions, including a push to equalize schedules to 12 weekly hours per contract. Diplomacy & Tech: Paraguay’s foreign ministry deputy administration chief met Taiwan’s foreign minister in Taipei, with both sides highlighting cooperation and a planned AI computing center. Tourism & Heritage: Two Paraguayan Navy vessels in Encarnación have drawn 10,000+ visitors for guided tours tied to WRC celebrations. Business Tech: Absen and Polywall announced a partnership to deliver integrated video-wall software for control rooms, with deployments already in government and financial projects.

Mercosur Digital Trade: Brazil has enacted the Mercosur Electronic Commerce Agreement, effective Aug. 24, banning customs duties on cross-border e-commerce transactions among Brazil, Argentina, Paraguay and Uruguay and recognizing electronic signatures, while also setting data-protection and cybersecurity cooperation rules. Regional Security Cooperation: South American air chiefs met in Tucson for SOUTHAM 2026 to coordinate responses to transnational crime, cyber threats and illicit air corridors, with Paraguay in the broader regional security conversation as interoperability and information-sharing take center stage. Tourism Spillovers for Paraguay: Argentina’s outbound tourism fell 21.2% in July, while inbound visitors rose 17.9%; Paraguay is cited as a source market for outbound tourism to Argentina (15.2% of outbound tourists), a useful signal for regional travel demand. Agrifood Finance Push: FAO convened 70 representatives to build a roadmap to scale investment in Latin America and the Caribbean agrifood systems, targeting better access to formal finance for producers. Frontier Markets Watch: A Swiss bank argues frontier and emerging market debt remains attractive amid global bond selloffs, pointing to higher yields and improving fundamentals. Paraguay Digital Heritage: Paraguay launched an online archive with nearly 100,000 pages of 19th- and early-20th-century historical documents and newspapers for public access.