January to December 2009

2 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 We are a civilian non-profit association founded 68 years ago, and which brings together more than 550 business entities, these being the most important of the Import Trade Sector. Historically, they are responsible for 80% of the countrys imports, by volume. Additionally they contribute more than 50% of total tax income, and these companies provide employment for more than 40% of the economically active population involved in Imports. Vision Our aim is to be the Leading Association in the Import Business Sector and to make available to our associates representation, services and benefits, with quality and efficiency, and in this way collaborate with the countrys development. Work to achieve the growth of the Import/Trade Sector, through the protection of private enterprise, insistence on legality, increased training and provision of services and benefits to our Associates; thereby helping to safeguard the national interests, mainly in the fields of economic and social welfare. Mission About ourselves

3 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 Evaluation of the Members of C.I.P.

4 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009

5 Geographic Location: Located in the southern and western hemispheres of the planet. A landlocked country, whose access to the sea is through other countries such as Argentina, Uruguay, Brazil and Chile. It has borders in the north with Bolivia and Brazil, and in the south with Argentina. Area: Sq. Klm., 11th in America, 9th in the Spanish World, and 58th in the World. Capital: Asuncion, founded by Juan de Salazar y Espinoza on August 15, Government and Constitution: The Republic of Paraguay is free and independent. It is constituted as a social State which is decentralized, undividable, united and having a legal system. Its government is by representative, participative and pluralistic democracy, based on the recognition of the dignity of persons. Government is exercised by the Executive, Legislative, and Judicial Powers. Current President: H.E.Mr. FERNANDO LUGO MENDEZ Member of: U.N., W.T.O., O.A.S., A.L.A.D.I., MERCOSUR. Population: 59 million inhabitants (58% Urban – 42% Rural) Annual Rate of Population Growth: 25% Division of Sexes: Male 495% - Female 505% Religion: Predominantly Roman Catholic, although there is absolute freedom of religious preference. Languages: Spanish and Guaraní. Unit of Currency: Guaraní. Time zone: G.M.T. minus 4 hours. Climate: Tropical and Subtropical. The lowest temperatures are recorded in the eastern and southern regions of the country, and increase as one moves northwards. Summer and winter temperatures are more accentuated in the Paraguayan Chaco. Republic of Paraguay Republic of Paraguay

6 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 References * Preliminary dates of B.C.P. a) Exchange Rate Buy/Sell ok Bank and Exchange Houses at las working days. b) Change in International Reserves ; Increase (-) and Decrease (+) c) Amounts estimated by Ministry of Agriculture and Cattle raising for the season 2002/03. d) General Direction of Statistical and Censures / Survey of Homes Dates of one month before. PARAGUAY ECONOMIC INDICATOR*

7 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY GROSS DOMESTIC PRODUCTS – G.D.P. BY ECONOMIC SECTORS 24% 51% 17% 8%

8 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY IMPORTS FROM MERCOSUR AND REST OF THE WORLD (In thousands of USD)

9 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY IMPORTS

10 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 Imports Imports reported in December 2008 totaled US$ 8,470.6 million, which represents a 49,6% increase compared to the amount reported for the same period in 2007, when the total was US$ 5,662.7 million. The increase was mainly due to larger purchases of mechanical and electric machines and equipment, vehicles, fuel and lubricants, tractors and spare parts, fertilizer, toys, products of the chemical industry, plastics and their derivatives, beverages and tobacco, rubber and its by-products, paper and cardboard products, and others; all of which together amounted to and increase of US$ 2,343.5 million.

11 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY IMPORTS BY TYPE OF GOODS (In thousands of USD) *Preliminary statistics released by SOFIA (System for the regulation of customs duties) of the D.N.A. a) Includes paper and cardboard and their by- products, pharmaceuticals, textiles and their by-products, gems and precious metals, other consumer goods and construction material b) Includes jeeps and pick-up trucks c) Includes iron and its by-products (except hardware items), non- ferrous metals and their by-products, stones, earths and their by- products, cement and asphalt, other intermediate goods, glass and its by-products d) Not including automobiles, jeeps and pick-up trucks e) Includes agricultural equipment and accessories, hardware goods of iron and non- ferrous metals, wood products, and animals

12 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY PARTICIPATION OF IMPORTS IN G.D.P.

13 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY EXPORT TO MERCOSUR AND REST OF THE WORLD (In thousands of USD)

14 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY EXPORTS

15 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY MAIN EXPORT PRODUCTS (In thousands of USD)

16 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 Exports Exports registered in the month of December 2008 totaled US$ 4,433.7 million, which is a 59.2% increase over the total for December of the year before, when the total was US$ 2,784.7 million. This increase was due to the increase in the sales of soybeans, meat, soybean flour, soybean oil, cereals, sugar and tobacco, for a total of US$ 1,563.7 million. Conversely, the categories that reports decrease are, lumber, skins and hides, wearing appareal, cotton fiber, essential oils and live animals, to the value of US$ 82.6 million

17 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY PARTICIPATION OF EXPORTS IN G.D.P.

18 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY BALANCE OF FOREING TRADE 1990 – 2009 (In thousands of USD)

19 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY TRADE BALANCE BY MOST IMPORTANT COUNTRIES (In thousands of USD)

20 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY IMPORTS BY PRODUCTS AND COUNTRIES – 2008* (In thousands of USD)

21 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY IMPORTS BY ECONOMIC ZONES (In thousands of USD) Elaborado en base al trabajo realizado por la Dirección de Negociaciones Comerciales del Ministerio de Relaciones Exteriores *Cifras sujetas a variación **Para el total ALADI incluir Mercosur, Resto de Aladi, Can y México ***Países que se incorporan a la Unión Europea: En 1995 Austria, Finlandia y Suecia En el 2004 Estonia, Letonia, Lituania, Polonia, Republica Checa, Hungría, Eslovaquia, Eslovenia, Malta y Chipre En el 2007 Bulgaria y Rumania MERCOSUR: Argentina, Brasil, Uruguay RESTO DE ALADI**: Bolivia, Chile, Cuba, Perú CAN: Colombia, Ecuador, Venezuela NAFTA: Canadá, EE.UU. de América, México UNION EUROPEA***: Alemania, Austria, Bélgica, Bulgaria, Chipre, Dinamarca, Eslovaquia, Eslovenia, España, Estonia, Finlandia, Francia, Grecia, Hungría, Irlanda, Italia, Letonia, Lituania, Luxemburgo, Malta, Holanda (Países Bajos), Polonia, Portugal, Reino Unido, República Checa, Rumania, Suecia RESTO DE EUROPA: Albania, Croacia, Rusia, Serbia y Montenegro, Turquía, Ucrania SICA: Belice, Costa Rica, Dominicana, El Salvador, Guatemala, Honduras, Nicaragua, Panamá CARICOM: Islas Bahamas, Trinidad y Tobago, Surinam, Dominica, Barbados, Granada, Guyana, Haití, Jamaica, Montserrat, San Vicente, Santa Lucia, St. Kitts and Nevis SACU: Botswana, Lesotho, Namibia, Sudáfrica, Swazilandia EFTA: Islandia, Lieschteintein, Noruega, Suiza, CPLP: Angola, Cabo Verde, Guinnea-Bissau, Mozambique, Santo Tomé y Príncipe, Timor del Este CCG: Arabia Saudita, Bahrein, Emiratos Árabes Unidos, Kuwait, Omán, Qatar CER: Australia, Nueva Zelanda ASIA: Afganistán, Bangladesh, China, Corea del Norte, Corea del Sur, Filipinas, Hong Kong, India, Indonesia, Irán, Irak, Israel, Japón, Líbano, Malasia, Pakistán, Singapur, Siria, Sri Lanka, Tailandia, Taiwán, Vietnam AFRICA: Argelia, Benin, Burkina Faso, Costa de Marfil, Congo, Egipto, Gabón, Gambia, Ghana, Liberia, Madagascar, Marruecos, Nigeria, Libia, Túnez.

22 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY 15 MAIN IMPORTS BY PRODUCT CATEGORIES TOTAL IMPORTS IMPORTS FROM MERCOSUR

23 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY 15 MAIN IMPORTS BY PRODUCT CATEGORIES FROM BRAZIL FROM ARGENTINA

24 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY 15 MAIN IMPORTS BY PRODUCT CATEGORIES FROM URUGUAY

25 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY EXPORT BY ECONOMIC ZONES (In thousands of USD) Elaborado en base al trabajo realizado por la Dirección de Negociaciones Comerciales del Ministerio de Relaciones Exteriores *Cifras sujetas a variación **Para el total ALADI incluir Mercosur, Resto de Aladi, Can y México ***Países que se incorporan a la Unión Europea: En 1995 Austria, Finlandia y Suecia En el 2004 Estonia, Letonia, Lituania, Polonia, Republica Checa, Hungría, Eslovaquia, Eslovenia, Malta y Chipre En el 2007 Bulgaria y Rumania MERCOSUR: Argentina, Brasil, Uruguay RESTO DE ALADI**: Bolivia, Chile, Cuba, Perú CAN: Colombia, Ecuador, Venezuela NAFTA: Canadá, EE.UU. de América, México UNION EUROPEA***: Alemania, Austria, Bélgica, Bulgaria, Chipre, Dinamarca, Eslovaquia, Eslovenia, España, Estonia, Finlandia, Francia, Grecia, Hungría, Irlanda, Italia, Letonia, Lituania, Luxemburgo, Malta, Holanda (Países Bajos), Polonia, Portugal, Reino Unido, República Checa, Rumania, Suecia RESTO DE EUROPA: Albania, Croacia, Rusia, Serbia y Montenegro, Turquía, Ucrania SICA: Belice, Costa Rica, Dominicana, El Salvador, Guatemala, Honduras, Nicaragua, Panamá CARICOM: Islas Bahamas, Trinidad y Tobago, Surinam, Dominica, Barbados, Granada, Guyana, Haití, Jamaica, Montserrat, San Vicente, Santa Lucia, St. Kitts and Nevis SACU: Botswana, Lesotho, Namibia, Sudáfrica, Swazilandia EFTA: Islandia, Lieschteintein, Noruega, Suiza, CPLP: Angola, Cabo Verde, Guinnea-Bissau, Mozambique, Santo Tomé y Príncipe, Timor del Este CCG: Arabia Saudita, Bahrein, Emiratos Árabes Unidos, Kuwait, Omán, Qatar CER: Australia, Nueva Zelanda ASIA: Afganistán, Bangladesh, China, Corea del Norte, Corea del Sur, Filipinas, Hong Kong, India, Indonesia, Irán, Irak, Israel, Japón, Líbano, Malasia, Pakistán, Singapur, Siria, Sri Lanka, Tailandia, Taiwán, Vietnam AFRICA: Argelia, Benin, Burkina Faso, Costa de Marfil, Congo, Egipto, Gabón, Gambia, Ghana, Liberia, Madagascar, Marruecos, Nigeria, Libia, Túnez.

26 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY 15 MAIN EXPORTS BY PRODUCTS CATEGORIES TOTAL EXPORTS EXPORTS TO MERCOSUR

27 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY TO BRAZIL TO ARGENTINA 15 MAIN EXPORTS BY PRODUCTS CATEGORIES

28 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY TO URUGUAY 15 MAIN EXPORTS BY PRODUCTS CATEGORIES

29 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY RANKING OF 50 TOP IMPORTERS BY FOB DOLAR YEAR 2009

30 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY RANKING OF 50 TOP EXPORTERS BY FOB DOLAR YEAR 2009

31 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 PARAGUAY MOST IMPORTAN COUNTRIES FOR FOREING TRADE (In thousands of USD)

32 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009

33 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 The Republic of Argentina, the Federal Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay signed the Treaty of Asuncion on March 26, 1991, thereby creating the Common Market of the South, MERCOSUR, which constitutes the most important international project in which these countries are involved. The four participating nations which make up MERCOSUR share a system of values which is expressed in their democratic and pluralistic societies, being defenders of fundamental liberties, human rights, environmental protection and sustainable development, as well as having an undertaking to consolidate democracy, to uphold the legal system, to fight poverty and strive for social and economic development with equal rights. Having this basic agreement of purposes, the partners try to achieve the broadening of their respective home markets, by means of integration, this being a fundamental condition necessary for the speeding up of their processes of economic development with social justice. Thus it may be said that the primary object of the Treaty of Asuncion is the integration of the four member states, by means of the free circulation of goods, services and production factors, the establishing of a common foreign trade tariff, and the implementation of a common policy for trade, as well as the coordination of macroeconomic and regional policies, and the harmonization of legislation in those areas where it is pertinent, in order to achieve the enhancement of the integration process. On the occasion of the Presidential Summit Meeting at Ouro Preto in December 1994, an additional Protocol to the Treaty of Asuncion was approved, by which the institutional structure of MERCOSUR is set up, and an international legal entity established. The Ouro Preto Summit brought the period of transition to an end, and the basic instruments of common trade policy were adopted, whereby a free-trade zone was brought into being, along with the customs union which is part of MERCOSUR today, and headed by the Common Foreign Tariff. In this way, the Member States entered a new phase, one of intensification and consolidation, wherein the free trade zone and the customs union constitute intermediate steps towards the establishment of a single market which can generate increased growth in their economies, by making use of the multiplying effect of specialization, of economy of scale, and the greater bargaining power available to the block.

34 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 TRADE BALANCE BY MOST IMPORTANT COUNTRIES (In thousands of USD) Source: Statistics supplied by Department of International Economy of Central Bank of Paraguay Association for Integration of Latin America.- ALADI MERCOSUR

35 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 G.D.P. OF MERCOSUR MERCOSUR

36 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 MERCOSUR IMPORTS EXPORTS

37 REPORT ON PARAGUAYAN FOREING TRADE - January to December 2009 BALANCE OF TRADE WITH MERCOSUR (Acumulated - in thousands of dollars) MERCOSUR