EXPORTING TO PARAGUAY: FIVE KEY ASPECTS TO LEARN ABOUT SOCIETY AND CULTURE

This small Latin American country, with significant hydraulic resources, offers excellent opportunities for international trade.

Rosario Traducciones continues its virtual rounds through the world to learn more about the features and characteristics of international markets. This time we travel to Paraguay, a country in the heart of Latin America, where natural rivers mark 70% of its political borders. Its hydraulic resources and river structure, which contains one of the biggest fluvial fleets globally, make it a strategic market that functions as a springboard towards other destinations.

1) Socioeconomic Characteristics

Paraguay offers a Maquila method, among other incentive tariffs, to attract foreign investment. It consists of importing half-manufactured goods duty-free and tariff-free, as long as they are assembled, manufactured, or processed, and export the finished product.

Although Maquila is an old method of international trade found in countries with low wages, Paraguay has updated it to "Maquila of intangible services," which processes and exports intangible assets temporarily imported electronically. This has allowed the knowledge-based services industry to find a market niche in this country. The low cost of electricity and labor is also a plus.

Paraguay has the youngest population in the region; 66% are 35 years old and younger. It has a total population of 6.8 million inhabitants; half of the population lives in the capital city of Asuncion.

2) Two Official Languages

Most of its population (80%) is bilingual. The Constitution of 1967 recognized Guarani as a national language and Spanish as the official language. Both languages became official with the proclamation of the constitution in 1992. Moreover, Guarani has been recognized as the working language in Mercosur.

Besides Guarani, 50,000 Paraguayans speak indigenous languages like Ache, Ayoreo, Chamacoco, Iyo'wujwa Chorote, Guana, Maka, Nivacle, Nhandeva, Pai Tavytera, Sanapana, Toba Qom, and Toba-Maskoy.

The most common foreign languages are Portuguese (border with Brazil) and German (German migration after World War II).

3) Catholic Roots

Much of the population is Roman Catholic. There are various protestant sects and small Baháʼí, Buddhist and Jewish faith groups.

Paraguay pays tribute to the Immaculate Conception of the Virgin Mary on the 8th of December, among other traditional holidays and Catholic rituals. It is celebrated with a pilgrimage guided by religious people and government civil servants to the Sanctuary of Caacupe.

Beliefs and practices related to death are influenced by Roman Catholic tradition. The deceased are buried in cemeteries; novenas are held for the dead, although this custom is fading in urban areas.

4) Social Etiquette

Personal relationships are much more important than business relationships in Paraguay. For this reason, it is suggested to establish a personal bond when first acquainted with someone.

Men and women shake hands, even if they have met before.

Business meetings usually start a few minutes late, but those who arrange the meeting are still expected to be on time. Negotiations tend to be long and paced; it is recommended to follow the local pace and avoid impatience.

5) War of the Triple Alliance

The War of the Triple Alliance found Uruguay, Brazil, and Argentina against the Republic of Paraguay.

Paraguay was considered an economic power before the war, with the most industrial development in the region. The conflict began in 1864, during the government of Francisco Solano López, and ended in 1870 with the death of the Paraguayan commander-in-chief. Paraguay lost a large portion of the territory disputed with Brazil and had to pay compensation to all the countries affected by the war.

Still today, Paraguay has not fully recovered from this war, in which more than 75% of the population, primarily men, lost their lives.

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