Paraguay eyes Chinese parts assembly plan amid US tariff war with China, Brazil
Effort comes as pressure mounts for country to review recognition of Taiwan
Paraguayan lawmakers on Tuesday heard government ministers outline a proposed assembly law that would allow companies to manufacture electronic and digital goods locally using imported parts, many from China, as political debate grows over whether the country should end diplomatic ties with Taiwan in favour of Beijing.
Economy Minister Carlos Fernandez Valdovinos and Industry and Commerce Minister Javier Gimenez told a Senate hearing the measure would let businesses that currently import fully assembled products shift to bringing in components and putting them together in Paraguay, branding them “Made in Paraguay”.
Officials said the initiative could cut costs, create jobs and diversify the country’s production base without curbing existing imports.
The plan would cover goods ranging from televisions and refrigerators to microwave ovens and air conditioners, and would borrow from Paraguay’s automotive policy, which has already led to 90 per cent of motorcycles on the road being assembled locally.
Gimenez said current global trade tensions present a rare opportunity for Paraguay, saying that recent US tariffs on Chinese goods, initially set at 145 per cent before being reduced to 30 per cent, and a 50 per cent levy on Brazilian exports, could make the country “an attractive hub for assembly services”.
“If we grant this advantage, importers and entrepreneurs can open industries, import the parts and assemble them here,” he told senators.