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WT/TPR/M/360 29 November 2017 (17-6489) Page WT/TPR/M/360 29 November 2017 (17-6489) Page: 1/45 Trade Policy Review Body 20 and 22 September 2017 TRADE POLICY REVIEW PARAGUAY MINUTES OF THE MEETING Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia) CONTENTS 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF PARAGUAY .................................. 4 3 STATEMENT BY THE DISCUSSANT ................................................................................ 9 4 STATEMENTS BY MEMBERS ........................................................................................ 15 5 REPLIES BY THE REPRESENTATIVE OF PARAGUAY AND ADDITIONAL COMMENTS ..................................................................................................................... 37 6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 44 Note: Advance written questions and additional questions by WTO Members, and the replies provided by Paraguay are reproduced in document WT/TPR/M/360/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/360 • Paraguay - 2 - 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON 1.1. The fourth trade policy review (TPR) of Paraguay took place on 20 and 22 September 2017. The Chairperson, H.E. Ambassador Juan Carlos Gonzalez (Colombia) welcomed the delegation of Paraguay, led by H.E. Ambassador Luis Fernando Ávalos, Vice-Minister for Economic Relations and Integration in the Ministry of Foreign Affairs, and the discussant, H.E. Ambassador Héctor Casanueva (Chile). 1.2. The Chairperson recalled the purpose of trade policy reviews and the main procedures for the meeting. The report by Paraguay was contained in document WT/TPR/G/360 and that of the WTO Secretariat in WT/TPR/S/360. 1.3. Written questions from the delegations of Argentina; Australia; Brazil; Canada; Chile; Colombia; Dominican Republic; European Union; Mexico; and the United States had been submitted within the deadline. Written questions from the delegations of Costa Rica; Ecuador and Thailand had been submitted after the deadline. 1.4. During the previous TPR meeting, Members had praised Paraguay for its outstanding economic performance. In its report for the current review, the Secretariat noted the continued robust economic performance over the period covered, with real GDP growing at an average annual rate of 4.7% in 2011-2016. At the time of the previous review, Members had invited Paraguay to diversify its export products and markets to lower its vulnerability to external shocks. Members would undoubtedly be interested to learn more about the initiatives taken by the Government of Paraguay to ensure continued economic growth and the strategies aimed at diversifying the country's trade in terms of export products and destinations. 1.5. At the time of the 2011 review, Paraguay had been commended for the low levels of tariff and other protection and for its efforts to streamline the business environment and facilitate trade. On the other hand, several Members had urged Paraguay to relax certain prior registration and licensing requirements and to eliminate consular fees and the requirement to use customs brokers. The 2017 Secretariat report noted that in recent years a number of further trade facilitation initiatives had been implemented and that Paraguay had ratified the WTO Agreement on Trade Facilitation. In some of their questions concerning this review, Members sought further clarification on Paraguay's import and export licensing regimes and wanted to know when the "valuation fee" and the reference value used for clothing products would be eliminated. 1.6. With respect to Paraguay's intellectual property rights regime, in 2011 Members had urged Paraguay to strengthen enforcement and to undertake legislative reforms in the areas of patents and geographical indications. According to the 2017 Secretariat report, Paraguay had enacted a series of decrees to implement laws governing patents, copyright and related rights and trademarks during the review period, also adopting a new law on geographical indications and designations of origin and establishing the National Intellectual Property Directorate. Several of the questions submitted by Members for the current review referred to Paraguay's intellectual property regime, and Members would undoubtedly be interested to receive further information concerning the implementation of these legislative and institutional reforms and the country's intellectual property strategy in the course of the meeting. 1.7. In the previous review of its trade policies, Paraguay had also been encouraged to improve the transparency of its government procurement regime, to reconsider the preferences granted for domestic products, and to envisage joining the WTO Plurilateral Agreement on Government Procurement. According to the 2017 Secretariat report, over the review period Paraguay had continued to modernize its legislative framework in order to make government procurement procedures more flexible and transparent. Several of the questions submitted by Members for the current review sought to obtain further details on the procedures applied. 1.8. Another subject of interest in the 2011 TPR had been that of Paraguay's incentive schemes to attract investment and promote exports, including an analysis of the related costs and benefits. Various Members had urged Paraguay to notify these schemes to the WTO. This continued to be an area of interest to Members in the current review, with various questions relating to VAT exemptions applied, Paraguay's free zone and maquila regimes, and incentives offered under the WT/TPR/M/360 • Paraguay - 3 - national automotive policy. Some Members reiterated a call for Paraguay to notify its incentive programmes to the WTO. 1.9. With respect to competition policy, in 2011 Members had encouraged Paraguay to adopt competition policy legislation to improve business predictability and attract foreign direct investment. The 2017 Secretariat report noted the enactment of a competition law in 2013 and the issuing of its implementing Regulations. A National Competition Commission was up and running and had already analyzed a number of mergers and concluded other investigations. Several Members submitted questions concerning competition legislation and its application and would undoubtedly welcome additional information on institutional developments in this regard. 1.10. During Paraguay's preceding trade policy review, Members had also suggested that the country could benefit from further services liberalization in areas such as transport and telecommunications. Several questions from Members in the current review were aimed at obtaining further details about policies on services, especially financial, telecommunications, energy and tourism services. 1.11. Lastly, in the context of the present review, other areas in which Members' questions stated an interest in receiving more information were: the new legislation on electronic commerce; agriculture; regional and preferential trade agreements; various aspects of Paraguay's investment regime; and SPS and TBT issues. 1.12. There was certainly a wide range of topics on which to expand in the current review, and the Chairperson looked forward to an interesting and fruitful exchange of views. WT/TPR/M/360 • Paraguay - 4 - 2 OPENING STATEMENT BY THE REPRESENTATIVE OF PARAGUAY (H.E. AMBASSADOR LUIS FERNANDO ÁVALOS) Opening remarks 2.1. First of all, we would like to express special thanks to the delegations of countries that are friends of Paraguay for their presence in this room and for their interest in our country. Our thanks also go to Ambassador Juan Carlos Gonzalez for chairing this meeting and for his introductory remarks, and to the Permanent Representative of Chile, Ambassador Héctor Casanueva, who is doing us the honour of acting as our discussant. 2.2. The interest evidenced by our receiving close to 150 questions reflects, as I have just said, growing interest in our country's share of trade. Particular thanks are due to the WTO Secretariat for its comprehensive and excellent report. 2.3. The delegation of Paraguay is composed of senior officials of the Ministries of Industry and Trade, Finance, and Foreign Affairs, the Central Bank of Paraguay, the National Customs Directorate, and, as goes without saying, skilled personnel from the Permanent Mission of Paraguay to the World Trade Organization. Introduction, economic environment 2.4. I would like to begin my statement by emphasizing that Paraguay experienced profound changes during the period under review, recording levels of economic growth and social development that trended strongly upwards, as evidenced not only by the economic indicators published by the various international organizations and agencies but also by the impact they had on people's daily lives. 2.5. The fourth WTO trade policy review of Paraguay is an opportunity to take a detailed look at the country's trade policies over the past six years, underpinned by Paraguay's National Development Plan 2030, whose objectives are to consolidate the foundations for high, sustainable and socially inclusive economic growth. In designing and implementing this Plan, the Paraguayan Government focused on three main lines of action: poverty reduction and social development; inclusive economic growth; and the country's presence on the global scene. 2.6. World economic developments saw major volatility on financial
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