AGP Executive Report

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.

Mercosur Digital Trade: Brazil has enacted the Mercosur Electronic Commerce Agreement, banning customs duties on electronic transactions among Brazil, Argentina, Paraguay and Uruguay, and strengthening rules on e-signatures and cross-border data transfers—effective Aug. 24. Paraguay Digital Heritage: Paraguay launched an online archive with public access to nearly 100,000 pages of 19th- and early-20th-century historical documents and newspapers, digitizing key titles from the War of the Triple Alliance era. Solar Investment Pulse (Paraguay in the mix): A solar market roundup shows new project moves and financing across the US, Egypt, Paraguay and India, highlighting continued capital flow into utility-scale solar and storage. Human Rights Measurement: A new book from Binghamton and the University of Rhode Island proposes a data-based framework for comparing human rights practices over time, including identifying over- and underperformers. Business Tech Partnership: Absen and Polywall announced a partnership combining LED displays with video-wall software for control rooms and public safety operations, with deployments already in government and financial projects. Sports-Linked Paraguay Interest: Transfer chatter says River Plate’s Matías Galarza Fonda is a loan target for Olimpia after his Paraguay World Cup run boosted his profile.

Mercosur Digital Trade: Brazil has implemented the Mercosur Electronic Commerce Agreement, effective Aug. 24, banning customs duties on cross-border electronic transactions among Brazil, Argentina, Paraguay and Uruguay, while also pushing data protection and recognition of electronic signatures. Paraguay’s Digital Access Push: Paraguay launched a new online archive, “Memoria escrita de un Gigante 1845-1904,” digitizing nearly 100,000 pages of 19th-century historical newspapers and documents for public access via the Ministry of Education and Sciences. Solar Investment Momentum: A solar projects roundup shows new deals and financing activity across multiple markets including Paraguay, highlighting continued capital flow into utility-scale solar and storage. Trade Diplomacy Watch: India’s commerce leadership is set to intensify South America outreach (Brazil, Argentina, Chile) with talks aimed at upgrading trade pacts and expanding engagement with MERCOSUR, which includes Paraguay. Local Business/Finance Angle: A Swiss bank commentary argues frontier markets and emerging market debt could offer attractive carry and diversification in 2026 amid global bond selloffs.

Mercosur Digital Trade: Brazil has enacted the Mercosur Electronic Commerce Agreement, effective Aug. 24, banning customs duties on e-commerce transactions between individuals across Brazil, Argentina, Paraguay and Uruguay, while also pushing data protection, cybersecurity cooperation and recognition of electronic signatures to cut cross-border friction. Paraguay Forestry Exports: Paraguay’s forest product exports hit US$60.08M in Jan–Jul 2026 (105,219 tonnes), up 11% in value and 2.5% in volume year-on-year, with July the strongest month at US$11.99M. Solar Investment Flow: New tracked deals show solar capital moving fast, including Paraguay-linked project activity alongside the US, Egypt and India, signaling continued momentum for renewables financing. Digital History Access: Paraguay launched an online digital archive (“Memoria escrita de un Gigante 1845-1904”) with nearly 100,000 pages of 19th–20th century documents and newspapers for public access. Conservation Update: Asunción Zoo expanded blue-and-yellow macaw habitats as part of ongoing conservation and breeding efforts, with veterinary teams monitoring native birds. Trade Outlook in the Region: ECLAC kept Latin America’s 2026 growth forecast at 2.2%, warning the pace remains too weak to lift living standards. Sports & Culture (Local Angle): Paraguay’s National Folklore Day spotlights Guaraní and other cultural roots, while a recent feature ties yerba mate traditions to Paraguay’s role in the drink’s history and export.

Paraguay Forestry Exports: Paraguay’s forest product exports hit US$60.08M in Jan–Jul 2026 (105,219 tonnes), up 11% in value and 2.5% in volume year-on-year, with July the strongest month at 19,612 tonnes and US$11.99M. Crypto & Energy: HIVE Digital Technologies reported a 104% jump in fiscal 2026 Bitcoin mining to 2,885 BTC, crediting expansion in Paraguay using hydro-powered capacity. Regional Trade: Argentina’s Chamber of Deputies is set to ratify the Mercosur–Singapore free trade agreement, which requires approval from Paraguay as well to take effect. Macroeconomy Watch: ECLAC kept Latin America’s 2026 growth forecast at 2.2%, warning the pace is too weak to lift living standards. Diplomacy & Business Links: India’s commerce secretary will visit Brazil, Argentina, and Chile (Aug 24–28) to deepen trade ties and advance the India–Chile upgrade from PTA to FTA, with MERCOSUR cooperation also on the agenda. Japan–Paraguay Ties: Japan’s Crown Prince and Princess visited Paraguay to honor the Japanese diaspora and mark 90 years since immigration.

Trade & Diplomacy: India’s commerce secretary Rajesh Agrawal will visit Brazil, Argentina and Chile (Aug 24–28) to deepen trade ties, push the India-Chile PTA toward a full FTA, and discuss expanded cooperation with MERCOSUR (including Paraguay). Forestry Exports: Paraguay’s forest product exports hit US$60.08M in Jan–Jul 2026 (105,219 tonnes), up 11% in value and 2.5% in volume year-on-year, with July the strongest month. Energy & Crypto: HIVE Digital Technologies reported a major Paraguay-led ramp in renewable-powered Bitcoin mining, while Tether abandoned a Uruguay mining expansion after a power dispute—both highlighting how electricity access is shaping regional crypto economics. Local Business & Tech: Prime Video announced a $2B+ investment in Latin America (2027–2030), including new markets such as Paraguay for subscription and content access. Community & Culture: Japan’s Crown Prince and Princess visited Paraguay to honor the Japanese diaspora’s 90 years in the country, reinforcing people-to-people ties that can support future business links.

Forestry Exports: Paraguay’s forest product exports hit US$60.08M in Jan–Jul 2026 (105,219 tonnes), up 11% in value and 2.5% in volume year-on-year, with July the strongest month at 19,612 tonnes and US$11.99M. Digital Assets: Crypto firm Tether abandoned its ~US$120M Bitcoin mining sites in Uruguay after a power-supply dispute with state utility UTE, ending its South America mining push. Entertainment Investment: Prime Video plans to invest over US$2B in Latin America from 2027–2030, doubling local originals and expanding sports rights, with Paraguay included among new markets for subscription options. Trade & Food Security: EU moves to block Brazilian meat from entering from Sept 3 over antibiotic rules, while a UN report flags potential El Niño (2026–27) risks for food insecurity across the Americas. Local Culture & Heritage: Asunción marks Guarania Week 2026 (culminating Aug 27) and Humaitá completes conservation work at the San Carlos de Borromeo ruins, tied to the War of the Triple Alliance.

Forest Trade Boost: Paraguay’s forest product exports hit US$60.08M in Jan–Jul 2026 (105,219 tonnes), up 11% in value and 2.5% in volume year-on-year, with July the strongest month at 19,612 tonnes and US$11.99M. Cultural Economy & Tourism: Guarania Week 2026 runs Aug 21–30 in Asunción, culminating on Aug 27 (National Guarania Day) with free and ticketed events aimed at preserving the genre and drawing visitors. Heritage & Jobs: Humaitá’s San Carlos de Borromeo ruins have reopened after cleanup and vegetation removal, part of ongoing heritage conservation tied to the War of the Triple Alliance. Local Conservation: Asunción Zoo expanded habitats for its blue-and-yellow macaws and red macaws, with veterinary teams monitoring 22 birds and preparing nesting boxes for the breeding season. Diaspora & Soft Power: Japan’s Crown Prince Akishino visited Asunción to mark the 90th anniversary of Japanese immigration, praising the community’s role in strengthening ties with Paraguay. Regional Macro Watch: ECLAC cut Latin America’s 2026 growth forecast to 2.2%, while projecting Paraguay at 4.3%.

Crypto & Energy: Tether has abandoned its $120M Bitcoin mining expansion in Uruguay after a power-supply dispute with state utility UTE left two sites without enough electricity, ending the project and highlighting how mining economics are getting squeezed by higher energy costs. Streaming Investment: Prime Video says it will invest more than $2B in Latin America from 2027-2030 to expand local originals, acquisitions and sports rights, and it plans to add Paraguay to its direct subscription/rental/purchase options later this year. Bitcoin Mining Growth (Paraguay): HIVE Digital Technologies reported a 62% jump in monthly Bitcoin production and a record fiscal 2026 output of 2,885 BTC, driven largely by its renewable-powered Paraguay expansion. Regional Outlook: ECLAC cut its 2026 growth forecast for Latin America and the Caribbean to 2.2%, citing weaker global growth, financial volatility and energy-market pressure, with Paraguay projected at 4.3%. Culture & Language: Asunción kicks off Guarania Week 2026 (Aug 21-27) and the government launches “Rohayhu Che Ne’e” to boost Guaraní in public spaces (Aug 24-28). Heritage & Tourism: Paraguay restored the Humaitá San Carlos de Borromeo ruins, a key War of the Triple Alliance site, after conservation work. Sports (Paraguay): WRC Rally Paraguay returns to Itapúa Aug 27-30 with 22 gravel stages and major fan activities in Encarnación.