With the progress of the agreement between the European Union and Mercosur, Paraguay It is taking on a role that goes far beyond that of a simple outlet market. For many European companies—and especially Italian ones—it could become a true production, fiscal, and logistics hub from which to efficiently serve Brazil, Argentina, Uruguay, and the domestic market itself.
Competitive advantage comes from a rare combination: access to the Mercosur bloc, low operating costs, an increasingly reliable regulatory system and, above all, the maquila regime, which today represents one of the most interesting tools for those evaluating an industrial presence in Latin America.
It is no coincidence that these themes will be at the centre of the speech of Nahuel Pianarosa, commercial director of Grupo Vierci, during TuttoFood Milano 2026, in the Cibus Link HalPianarosa will offer a direct and operational interpretation of this model, underlining how Paraguay is not just a gateway to Mercosur, but a potential hub for the entire continent.
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Il maquila regime, governed by Law 1064/97, allows a foreign company to operate directly in Paraguay or through local partners for the transformation, assembly, processing or improvement of goods intended for export.
The key element is the possibility of temporarily importing raw materials, semi-finished products, machinery and capital goods without duties or customs taxes, provided that the final product is re-exportedA mechanism that drastically reduces tied up capital and increases operational flexibility.
Further strengthening the attractiveness of the system is the taxation: the regime provides for a single tax of 1%, applied to the value of the invoice for the maquila service or export. (whichever is greater). For an Italian food manufacturer, this opens the door to numerous practical applications: packaging, portioning, intermediate processing, and product adaptation to local or regional markets.
One of the most strategic aspects concerns the rules of origin. Paraguay can benefit from relatively favorable requirements: a 40% regional content is sufficient, while the remaining 60% can come from countries outside the area.
This means that an Italian company can import ingredients, know-how, or components from Europe, complete part of the production process in Paraguay, and obtain a product classified as Mercosur origin. Once certified, the product can circulate within the bloc with tariff advantages, significantly improving competitiveness in major markets, primarily Brazil and Argentina.
In recent years, Paraguay has developed an increasingly favorable regulatory environment for foreign investors. Law 117/91 guarantees equal treatment for local and international investors, protection of private property, currency freedom, and full repatriation of capital, profits, and royalties.
This is complemented by Law 5542/2015, which introduces a system of investment guarantees, including income tax stability for up to 10, 15, or 20 years, depending on the size of the investment. This is particularly important for medium- to long-term industrial projects.
Macroeconomic stability and international credibility
The macroeconomic context further reinforces this trajectory. According to the International Monetary Fund, Paraguay recorded a growth of Real GDP of 4,2% in 2024 and 3,8% in 2025, accompanied by low inflation, a solid banking system and a level of sovereign risk considered low.
The country's improved rating also confirms this trend: the achievement of investment grade by Moody's and Standard & Poor's signals a growing reliability of the economic system, making the country more predictable and attractive for structured industrial investments.
Energy: a concrete competitive advantage
One of the least talked about, but decisive, elements is the cost of energy. Paraguay has a electricity production almost entirely hydroelectric, supported by the large dams of Itaipú and Yacyretá.
The country produces more energy than it consumes and this surplus translates into particularly competitive tariffs: approximately $0,053 per kWh for businesses, versus a global average of over $0,16.
For the food industry, this is a determining factorActivities such as refrigeration, freezing, processing, bottling, and packaging are highly energy-intensive. When combined with the maquila system, low electricity rates contribute to an extremely efficient industrial platform.
However, there remains an operational aspect to consider: grid quality and continuity can vary depending on the area. Therefore, the choice of location must consider not only energy costs, but also supply stability and proximity to the main logistics routes to Brazil and Argentina.
Paraguay's true value lies in its function as a platformIt is not a market comparable in size to Brazil or Argentina, but for this very reason it offers greater manageability as an initial base for industrial projects, market tests and re-export strategies.
For Italian companies, the key is a gradual approach: establishing a small production footprint, often in partnership with local operators, while maintaining the core of the product's quality and identity in Italy.
Conclusions
Paraguay isn't the perfect solution for every type of relocation, but it does represent a concrete opportunity for selective projects: intermediate processing, packaging, assembly, product adaptation, and export platforms to Mercosur.
The combination of the EU-Mercosur agreement and the maquila regime creates a powerful strategic lever, provided it is managed with direct control over quality, logistics, compliance, and brand positioning.
This scenario will also be explored further during TuttoFood Milano 2026, where Paraguay and, more generally, South America will be protagonists of an increasingly concrete dialogue with the European industry.
The analysis was developed by managers of Food Retail Italy, a company active between Europe and Latin America, committed to developing relationships between industry and distribution and providing operational support to Italian companies in international markets.
