AGP Executive Report

Education Strike in Paraguay: Teachers and education workers in Asunción and other cities launched strike days demanding an 8% wage increase, a bigger education budget, and fixes for school infrastructure, rejecting a government pact they say was signed with a minority union sector to weaken unity. Labor & Immigration Probe: Paraguay is investigating allegations of labor exploitation after a raid on an Asunción call center found about 200 Brazilian workers, with claims they were recruited online, worked under irregular immigration status, and had wages withheld over document issues. Paraguay–Argentina U-19 Football: Paraguay opened the Santa Fe 2026 South American Games by beating Argentina 2–1, rallying after going behind early with goals from Junior Gamarra and Pedro Zarza. Tax-Residence Spotlight: A new global index ranks Paraguay among the top jurisdictions for internationally mobile people seeking tax optimization, placing it third overall behind the UAE and Antigua & Barbuda. Investment Dispute Signal: ATOME PLC filed a notice of dispute and intent to arbitrate with Paraguay under the UK–Paraguay investment treaty tied to its Villeta low-carbon fertiliser project.

Teacher Strike in Paraguay: Educators in Asunción and other cities launched strike days demanding an 8% wage increase, a bigger education budget, and fixes for school infrastructure, rejecting a government deal that they say targets union unity. Labor & Immigration Probe: Paraguay is investigating alleged human trafficking and wage withholding at a call center that employed about 200 Brazilian workers, with claims they were recruited online and kept in irregular immigration status. Education Budget Talks: The dispute centers on how the General Budget should fund salary scales and education spending, with protesters pushing for formal negotiating tables. El Niño Risk for Paraguay: Regional planning is ramping up as El Niño is expected to intensify, with Paraguay likely facing above-average rainfall and higher flood risk. Tax Residency Spotlight: A new global index ranks Paraguay among the top tax-friendly options for internationally mobile people, highlighting how tax structure can drive relocation decisions. Investment Dispute Watch: ATOME PLC filed a notice of dispute and intent to arbitrate with Paraguay under the UK-Paraguay investment treaty over its Villeta low-carbon fertiliser project. Agribusiness Trade Pressure: EU feed supply chain risks are rising as drought and sourcing constraints collide, with Paraguay flagged as low-risk for soybean meal supply in the assessment. Co-op Leadership: The International Cooperative Alliance elected a new 2026-2030 board, with Paraguay’s cooperative leader Simona Cavazzutti returning to the global roster.

Tax & Mobility: UAE topped a new Global Citizen Solutions tax-optimisation ranking (82.7/100), with Paraguay third (77.2), highlighting how tax structure—not just headline rates—shapes relocation decisions. Investment Arbitration: ATOME PLC says it will file a Notice of Dispute and Intent to Submit a Claim to arbitration under the UK–Paraguay BIT over the Villeta low-carbon fertiliser project (US$665m). Trade & Integration: Switzerland’s parliament approved the EFTA–Mercosur free trade deal, including CHF517m in support for Swiss agriculture—an EU-Mercosur ripple that matters for Paraguay exporters. Energy & Climate: Itaipú began controlled dam gate openings for 10 days after heavy El Niño rains raised Paraná River levels, aiming to protect infrastructure and manage navigation and flooding risk. Health & Procurement: Gilead and PAHO announced a regional pathway to expand twice-yearly lenacapavir PrEP access across Latin America and the Caribbean. Business & Industry: KGM supplied 20 Musso EVs to Paraguay’s government as part of an electric-vehicle pilot, with plans for an auto parts task center. Culture & Science: Paraguay’s MuCi science museum is a finalist in three ICOM COMMS Awards categories, while Asunción hosts a sustainable fashion networking event (Casa MOLA Paraguay). Relocation Trend: Paraguay ranks second in South America in the 2026 Global Relocation Index, driven by affordability and residency/tax factors.

Paraguay Relocation Buzz: Paraguay ranks 44th globally and second in South America in the 2026 Global Relocation Index, scoring 66.5/100, with Rumavi pointing to low living costs, a territorial tax system, and an accessible permanent residency path. Electric Mobility Push: KG Mobility supplied 20 Musso EVs to Paraguay’s government as part of an electric vehicle pilot under an ODA industrial and trade cooperation program, with plans for an auto parts task center. Trade Paperwork Gets Easier: Paraguay signed on to an India–MERCOSUR protocol recognizing electronic Certificates of Origin, aiming to cut time and costs in customs for preferential tariffs. Energy & Climate Watch: Itaipú began a controlled 10-day opening of floodgates after El Niño-linked heavy rains raised Paraná River levels, coordinating releases to reduce flood risk in Paraguay and Argentina. Agribusiness & Markets: Bioceres received Nasdaq approval to transfer its shares and was granted 180 days to regain compliance with the $1 minimum bid rule, underscoring ongoing financial pressure in ag-tech. Science Spotlight: Paraguay’s MuCi science museum is a finalist in three categories at the ICOM COMMS Awards 2026, boosting visibility for local science communication.

Mercosur Trade Deal: Switzerland’s lower house approved the EFTA–Mercosur free trade agreement, after adding CHF517m (about $631m) in support for Swiss farmers; the deal is expected to go to a referendum under direct democracy rules. Climate & Food Security: A new “Godzilla El Niño” risk analysis warns major food commodities face weather shocks, with rice, sugar, coffee, cocoa and palm oil most exposed while some regions may see soybean and wheat benefits. Paraguay Energy & Water: Itaipú began controlled spillway openings for 10 days after heavy El Niño rains raised Paraná River levels, aiming to protect generation units and reduce flood risk for Paraguay and Argentina. HIV Prevention Deal: Gilead and PAHO announced a milestone partnership to expand access to twice-yearly lenacapavir for HIV prevention across PAHO member states in Latin America and the Caribbean. Agribusiness & Trade Tech: Paraguay is part of regional efforts to test soybean cultivars across the Americas, and it also signed onto India–Mercosur protocols enabling electronic Certificates of Origin to speed paperless trade. Local Economy & Mobility: Paraguay ranked second in South America and 44th globally in the 2026 Global Relocation Index, citing affordability, territorial tax rules and residency access. EV Supply: KGM supplied 20 Musso EVs to Paraguay under an official electric vehicle pilot, with plans for an auto parts task center. Co-ops Leadership: ICA elected a new 2026–2030 board, with Paraguayan co-op leader Simona Cavazzutti returning to the global board.

Trade & Customs Modernization: India and MERCOSUR (including Paraguay) signed a first additional protocol to accept electronic Certificates of Origin, giving e-docs the same legal validity as paper and aiming to cut paperwork and speed preferential tariff processing. Regional Trade Expansion: India and MERCOSUR also kicked off talks to expand their 2009 preferential trade agreement, with both sides finalizing terms of reference to broaden coverage beyond the current limited tariff lines. Agribusiness & Data for Farmers: A regional soybean cultivar evaluation network (with participation from Argentina, Uruguay, Paraguay and others) will test maturity groups across 180+ environments to help producers and seed companies compare performance and reduce production gaps. Digital Payments in Paraguay: A roundup notes that digital payments now account for over 80% of service transactions in Paraguay, signaling continued shift toward cashless commerce. Diplomacy & Markets: Paraguay’s ambassador to Serbia presented credentials, with both sides highlighting opportunities to deepen economic ties amid MERCOSUR-EU trade effects. Public Health Access: PAHO and Gilead announced a new pathway to expand twice-yearly lenacapavir HIV prevention access across PAHO member states, including Paraguay, via regional revolving funds.

Trade Facilitation for Paraguay’s Exports: India and Mercosur (including Paraguay) signed a protocol to accept electronic Certificates of Origin under their preferential trade deal, aiming for paperless customs, lower transaction costs, and faster verification once internal procedures are completed. Regional Trade Expansion Talks: India and Mercosur also announced negotiations to expand their existing preferential trade agreement, with both sides finalising terms of reference to widen coverage beyond current tariff lines. Local Development Finance Boost: Paraguay’s Development Finance Agency (AFD) approved a record US$108.8m for industrial lending in 2026—up 503% from 2025—supporting 172 industrial operations across all 17 departments and creating 3,400+ jobs. Agriculture R&D Network: A regional soybean testing program (RRECSO-Americas) will run standardized cultivar trials across 180+ environments in Argentina, Uruguay, Paraguay, Colombia and Peru to help seed companies and producers match varieties to local conditions. Diplomacy with Economic Angle: Paraguay’s ambassador to Serbia presented credentials, with both sides highlighting opportunities to deepen economic ties amid broader trade dynamics. Health Access in the Region: PAHO announced a new pathway to access lenacapavir for HIV prevention across 14 countries, including Paraguay, via regional revolving funds with Gilead.

Trade & Paperless Customs: India and MERCOSUR (including Paraguay) launched talks to expand their 2009 preferential trade agreement, with both sides finalizing terms of reference; they also signed a first additional protocol to accept electronic Certificates of Origin, giving digital documents the same legal validity as paper to cut costs and speed up clearance. Development Finance: Paraguay’s Development Finance Agency (AFD) approved a record US$108.8M for industrial loans in 2026, up sharply from 2025, backing 172 operations across all 17 departments and supporting thousands of jobs. Green Urban Planning: “Green Asunción” (with MADES and UNDP) outlines greener transport, more trees, cycle paths, better rainwater management, and a sustainability indicators platform to guide municipal investment. Diplomacy & Trade Links: India and Paraguay marked 65 years of diplomatic relations, reaffirming plans to deepen cooperation and boost economic and trade exchanges. Tech & AI Partnership: A Taiwan-Paraguay Technology Forum at Paraguay’s Central Bank highlighted AI collaboration, including a new year-long engineering study program in Taipei. Local Economy & Finance Signals: Digital payments now account for over 80% of service transactions in Paraguay, reflecting continued shift toward cashless commerce. Health Watch: Paraguay-related regional coverage also flagged dengue risk awareness as mosquito-borne outbreaks appear in other countries.

Trade Facilitation: India and MERCOSUR (including Paraguay) signed a protocol to accept electronic Certificates of Origin, giving digital documents the same legal validity as paper and aiming to cut costs and processing time for preferential trade. Development Finance: Paraguay’s Development Finance Agency (AFD) approved a record US$108.8M for industrial loans in 2026—up about 503% from 2025—backing 172 operations across all 17 departments and supporting thousands of jobs. Digital Payments: Paraguay’s service payments are now 82% digital (up from 66% in 2021), with QR and mobile commerce driving growth and a sharp rise in connected businesses and active digital accounts. Environment & Trade Risk: A report alleges UK retailers stocked charcoal linked to deforestation in Paraguay’s Gran Chaco, raising reputational and compliance concerns for exporters. Diplomacy & Economy: India and Paraguay marked 65 years of diplomatic relations, signaling plans to deepen cooperation and expand economic and trade exchanges. Urban Sustainability: “Green Asunción” outlines greener transport, waste and rainwater management plans, with UNDP and multiple ministries supporting implementation.

Digital Payments Boom: Paraguay’s digital payments now make up 82% of all service transactions, up from 66% in 2021, with 6M+ active digital accounts and 165,000 connected establishments as QR and mobile commerce keep accelerating. Currency Update: The Central Bank will unveil a full redesign of guaraní banknotes on Oct. 5, 2026—no value change, but new Guaraní culture and ecology-focused artwork across all denominations. EV Push: Paraguay’s clean power advantage is fueling a push toward an electric vehicle economy to cut fuel imports, attract investment, and build local jobs around clean mobility. Bilateral Trade Ties: India and Paraguay marked 65 years of diplomatic relations, signaling plans to deepen cooperation and expand economic and trade exchanges. Environment & Consumer Risk: A report alleges UK retailers sell charcoal linked to Paraguay’s Gran Chaco deforestation, tying everyday imports to biodiversity loss. Nature Watch: A jaguar with its cub was spotted near Itapúa’s Tebicuary River, reinforcing the need to protect biological corridors. Sports (Local Interest): Gustavo Alfaro’s Paraguay coaching contract runs through the 2030 World Cup, keeping momentum for the Albirroja.

Digital Payments Shift: Paraguay’s digital payments now make up 82% of all service transactions, up from 66% in 2021, with QR code use and mobile shopping driving the surge. Currency Update: The Central Bank of Paraguay will unveil a full redesign of guaraní banknotes on Oct. 5, keeping all denominations and values unchanged while refreshing artwork and adding Guaraní culture and ecological-region themes. Electric Vehicle Push: Paraguay’s clean-power advantage is fueling a push toward an electric vehicle economy to cut fuel imports and attract investment. Health & Philanthropy: Renaci Foundation says it provides free, comprehensive childhood cancer care across Paraguay, pairing treatment support with research and training. Business & Consumer Markets: Paraguay’s biscuit market hit about US$107M in annual sales, led by sweet biscuits and concentrated heavily around Asunción. Sports: Gustavo Alfaro’s Paraguay coaching contract is extended through the 2030 World Cup. Environment & Trade Pressure: Reports link UK retailers’ charcoal to deforestation in Paraguay’s Gran Chaco, while Latin America faces rising plastic-waste health risks after China’s import ban. Culture & Talent: Paraguay’s National Cultural Journalism Competition opens applications until Sept. 30, and a new Guaraní-focused cooking creator continues to grow online audiences.

Paraguay EV push: Paraguay’s clean-power advantage is being pitched as the engine for an electric vehicle economy, aiming to cut fuel imports and pull in investment and jobs tied to new mobility. Central Bank update: The Central Bank of Paraguay (BCP) will unveil a full redesign of guaraní banknotes on Oct. 5, 2026, keeping all six denominations and value unchanged while shifting artwork toward broader Guaraní culture and the country’s ecological regions. Public services pressure: Paraguay’s doctors and teachers have announced September strikes, escalating pressure on the government as Congress debates the 2027 budget. Procurement access: A new effort uses AI to help micro, small and medium enterprises find tenders they can realistically win, tackling the gap where less than 9% of public contracting goes to MSMEs. Community Notes expands: Meta is testing Community Notes in Paraguay and other Latin American markets, with contributors onboarding now and a possible move toward full publishing later. Health support: Renaci Foundation says it provides free, comprehensive childhood cancer care in Paraguay and backs research and training to expand access nationwide. Local market snapshot: Paraguay’s biscuit market reached about US$107M in annual sales, led by sweet biscuits, with Asunción driving most volume. Wildlife conservation: A jaguar with its cub was spotted near the Tebicuary River in Itapúa, reinforcing calls to protect biological corridors.

Paraguay Central Bank: Paraguay will unveil a full redesign of its guaraní banknotes on Oct. 5, 2026, keeping all six denominations and the currency’s value unchanged, but shifting the artwork toward Guaraní culture on the front and Paraguay’s six ecological regions on the back. Public Finance & Business: A new push aims to help micro, small and medium enterprises win more public contracts, since under 9% of Paraguay’s procurement spending goes to MSMEs; the DNCP is using AI to match tenders to firms that can realistically compete. Energy & Industry: Paraguay’s electric-vehicle push is framed as an economic strategy to cut fuel imports and attract investment by leveraging the country’s largely renewable power generation. Health & Society: The Renaci Foundation says it provides free, comprehensive childhood cancer diagnosis and treatment across Paraguay while funding research and expanding specialized care nationwide. Labor & Services: Public doctors and teachers have announced September strikes, adding pressure as Congress debates the 2027 budget. Consumer Market: Paraguay’s biscuit market hit about US$107M in annual sales, led by sweet biscuits (78%) and concentrated in the Asunción metro area (62%). Environment & Conservation: A jaguar with its cub was spotted near the Tebicuary River in Itapúa, reinforcing calls to protect biological corridors. Sports: Gustavo Alfaro’s Paraguay national team contract has been extended through the 2030 World Cup, with Paraguay set to host matches for the tournament’s centenary. Digital Platforms: Meta is expanding Community Notes testing to Paraguay and other Latin American countries, with contributors onboarding now and a possible future shift away from third-party fact-checking.

Electric Vehicle Push: Paraguay’s clean-power advantage is pulling fresh investment interest as the country looks to cut fuel imports and build an EV-focused economy, turning hydroelectric generation into a transport strategy rather than just an export business. Public Health & Social Services: Doctors and teachers in Paraguay have announced September strikes, raising pressure on the government as Congress debates the 2027 budget and spotlighting pay, staffing, and hospital supply gaps. Childhood Cancer Care: The Renaci Foundation says it provides fully free diagnosis and comprehensive treatment for childhood cancer across Paraguay, while also funding research and expanding access to specialized care nationwide. Consumer Market: Paraguay’s biscuit market hit about US$107M in annual sales, with sweet biscuits dominating and Asunción driving most of the volume—useful signals for local retail and food suppliers. Environment & Trade Scrutiny: A Reuters report links UK retailers’ charcoal to Paraguay’s Gran Chaco deforestation, adding pressure on Paraguay’s EU trade ambitions and sustainability claims. Biodiversity: A jaguar with its cub was spotted near the Tebicuary River in Itapúa, reinforcing the need to protect biological corridors where wildlife and productive land overlap.

Electric Vehicle Push: Paraguay’s clean-power advantage is being pitched as the engine for an electric vehicle economy, aiming to cut fuel imports and keep more spending at home while attracting investment and jobs. Public Procurement Access: A new effort uses AI to help micro, small and medium firms find tenders they can realistically win, since under 9% of Paraguay’s public contracting money currently reaches MSMEs. Health Sector Pressure: Paraguay’s public doctors (Sinamed) announced September strikes, adding to earlier labor unrest and raising pressure as Congress debates the 2027 budget. Food Market Watch: Paraguay’s biscuit market hit about US$107M in annual sales, with sweet biscuits dominating and Asunción driving most volume. Childhood Cancer Care: The Renaci Foundation says it provides free, comprehensive childhood cancer diagnosis and treatment across Paraguay while funding research and expanding access. Environment & Trade Scrutiny: A Reuters report links UK retailers’ charcoal to Paraguay’s Gran Chaco deforestation, spotlighting reputational and trade risks for EU-Mercosur-linked supply chains. Regional Security: Peru is set to join the U.S.-backed “Shield of the Americas” coalition against transnational organized crime, which already includes Paraguay.

Public Sector Labor: Paraguay’s doctors and teachers have announced September strikes, with doctors (Sinamed) planning walkouts on Sept. 21-22 as Congress debates the 2027 budget, following a late-August stoppage over pay, hospital supplies, and permanent positions for thousands on temporary contracts. SME Procurement Tech: Paraguay is using AI to help micro, small and medium enterprises find tenders they can realistically win, tackling the gap where under 9% of public contracting goes to MSMEs despite them representing about 95% of commerce. Manufacturing Push: Paraguay’s manufacturing output grew 26% year-on-year, with the industry ministry pointing to new investment targets of US$500 million to US$1 billion—while stressing the need for more predictability, infrastructure, and reliable energy. Trade & Environment Scrutiny: A Reuters/Global Witness investigation links UK retailers’ charcoal (including Big K sold via B&Q and Waitrose) to deforestation in Paraguay’s Gran Chaco, raising pressure as Paraguay seeks deeper EU trade ties. Community Notes Expansion: Meta is testing Community Notes across Latin America, including Paraguay, after expanding beyond the US—sparking concern among fact-checkers about what happens if third-party verification is phased out. Human Rights & Supply Chains: Brazil reported rescuing 479 people from labor exploitation in August, including victims from Paraguay, underscoring ongoing risks in regional labor and supply chains.