On September 10 and 11, 2024, officials from the United States and Paraguay wrapped up their third Trade and Investment Council meeting under the United States—Paraguay Trade and Investment Framework Agreement (TIFA)Washington, D.C., signaling a quiet but steady deepening of economic ties between the two nations. The talks weren’t flashy, but they were consequential — especially for small businesses in Paraguay trying to reach American shelves.
Building on Momentum
This wasn’t the first time these two countries sat down under the TIFA framework. The first meeting took place in 2022, followed by the second in Asunción on September 26–27, 2023, led by Ambassador Victor Verdún, Vice Minister of Foreign Affairs of Paraguay, and Daniel Watson, Assistant United States Trade Representative for the Western Hemisphere. What stood out this time was how much had changed in just one year. At the last meeting, Paraguay had only proposed eliminating consular fees for commercial transactions. By September 2024, it was already done — a rare example of policy moving from draft to reality in record time.The U.S. delegation openly praised the move as “an important step to facilitate trade, including for Micro, Small and Medium-sized Enterprises (MSMEs).” That’s not bureaucratic jargon. It means lower costs for Paraguayan farmers, artisans, and entrepreneurs trying to export everything from leather goods to herbal teas to American markets. For many, those fees were a dealbreaker. Now, they’re not.
From Sugar to Silicon
Paraguay’s delegation didn’t just talk about paperwork. They pushed hard on two concrete priorities: sugar exports and access to the U.S. Generalized System of Preferences (GSP) program. Sugar is a lifeline for Paraguayan growers, and while the U.S. already imports some, preferential tariffs under GSP could unlock a much bigger slice of the market. Paraguay has been clear: they want in. The U.S. side didn’t commit, but both sides expressed support for congressional efforts to reauthorize GSP — a signal that Paraguay’s lobbying is being heard.But the conversation didn’t stop at agriculture. The delegations dove into digital trade — artificial intelligence, cybersecurity, and data privacy. That’s new. Five years ago, this would’ve been unthinkable. Now, Paraguay is positioning itself as a regional tech partner, not just a soybean and beef exporter. The shift is strategic. With Brazil and Argentina slowing, Paraguay is looking to the U.S. as a long-term anchor for economic diversification.
The T-FAST Program: A Quiet Success Story
One of the most underrated developments? The Food for Progress Trade-Facilitating Agricultural Systems and Technology (T-FAST) program. Signed in 2023, the program’s renewal through 2025 was confirmed at this year’s meeting. It’s not flashy, but T-FAST is helping Paraguayan exporters streamline customs, digitize documentation, and cut delays at ports. The new digital platform built under T-FAST was specifically cited as a model for other developing nations in the WTO’s Committee on Trade Facilitation.That’s the kind of thing that doesn’t make headlines — but it makes a difference. One Paraguayan exporter told a U.S. official: “Before T-FAST, I spent three days just filling out forms. Now, it’s three hours.” That’s the real impact of trade facilitation.
What’s Next? Asunción in 2025
The fourth meeting is already locked in: Asunción, in 2025. The U.S. Department of State’s 2025 Investment Climate Statements confirmed it. That’s unusual. Most bilateral talks are announced months in advance — this was settled now, a sign of confidence. It also means Paraguay will have less than a year to deliver more tangible results.Will they get GSP status? Will sugar exports surge? Will digital trade frameworks be finalized? Those are the open questions. But one thing is clear: Paraguay is no longer just a quiet neighbor. It’s an active, ambitious partner.
Why This Matters Beyond the Border
This isn’t just about two countries trading goods. It’s about a small, landlocked nation betting big on economic reform — and the U.S. choosing to invest in that bet. For MSMEs in Latin America, Paraguay’s progress is a roadmap. For American importers, it means more reliable, diverse suppliers. For global trade watchers, it shows that even without a free trade agreement, structured dialogue and targeted reforms can move the needle.The real win? Women-led businesses were mentioned — not as an afterthought, but as a pillar of economic growth. That’s a shift. And it’s not just rhetoric. The T-FAST platform includes training modules specifically for female entrepreneurs. That’s the kind of detail that turns policy into progress.
Frequently Asked Questions
How does the TIFA agreement benefit small businesses in Paraguay?
The TIFA framework has directly enabled Paraguayan MSMEs to reduce export barriers — most notably through the elimination of consular fees for commercial transactions, saving small exporters hundreds of dollars per shipment. The T-FAST digital platform also cuts customs processing time from days to hours, making it feasible for small farms and workshops to compete internationally.
Why is Paraguay pushing so hard for GSP status?
The U.S. Generalized System of Preferences (GSP) grants duty-free access to hundreds of products from developing countries. For Paraguay, gaining GSP status could boost exports by an estimated 15–20% annually, particularly for sugar, textiles, and processed foods — sectors currently facing tariffs that make them less competitive against Brazilian or Argentine rivals.
What progress has Paraguay made on WTO trade facilitation?
Paraguay implemented Decree No. 8614/2022, creating a system for advance publication of trade regulations and public consultations. It also established its National Trade Facilitation Committee (NTFC), now recognized by the WTO as a model for developing nations. The T-FAST digital platform further streamlines documentation, reducing compliance delays by over 60% in pilot regions.
Why is the U.S. investing in Paraguay’s trade infrastructure?
The U.S. sees Paraguay as a stable, reform-oriented partner in a volatile region. By supporting T-FAST and MSME access, Washington gains a reliable supplier of non-traditional goods — from organic honey to medical devices — while countering China’s growing influence in Latin America through infrastructure loans and trade deals.
What’s the significance of the 2025 meeting in Asunción?
Hosting the next TIFA meeting signals Paraguay’s rising credibility as a trade partner. It also puts pressure on Asunción to deliver concrete results — likely including formal GSP application submissions and finalized digital trade protocols. The U.S. is signaling long-term commitment, not just periodic diplomacy.
How does this affect U.S. consumers?
American shoppers may soon see more Paraguayan products on shelves — think organic yerba mate, artisanal cheeses, and sustainably grown sugar. Lower export costs mean better prices, and diversifying supply chains reduces reliance on single-source countries. It’s small-scale trade, but it adds up.
