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WT/TPR/S/360/Rev.1 29 November 2017 (17 WT/TPR/S/360/Rev.1 29 November 2017 (17-6487) Page: 1/142 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT PARAGUAY Revision This report, prepared for the Fourth Trade Policy Review of Paraguay, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Paraguay on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr Angelo Silvy (022 739 5249), Ms Martha Lara (022 739 6033) and Ms Katie Waters (022 739 5067). Document WT/TPR/G/360 contains the policy statement submitted by Paraguay. Note: This report was drafted in Spanish. WT/TPR/S/360/Rev.1 • Paraguay - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 13 1.1 Main features of the economy ......................................................................................13 1.2 Recent economic developments ....................................................................................14 1.2.1 Real sector ..............................................................................................................14 1.2.2 Fiscal policy ............................................................................................................16 1.2.3 Monetary policy .......................................................................................................18 1.2.4 Balance of payments ................................................................................................20 1.3 Trade performance: goods and services ........................................................................21 1.3.1 Composition of merchandise trade .............................................................................21 1.3.2 Geographical distribution of merchandise trade ...........................................................21 1.3.3 Trade in services .....................................................................................................23 1.4 Foreign direct investment ............................................................................................24 2 TRADE AND INVESTMENT REGIME ............................................................................ 26 2.1 General framework .....................................................................................................26 2.2 Trade policy objectives ................................................................................................29 2.2.1 General trade objectives ...........................................................................................29 2.2.2 Electronic commerce ................................................................................................29 2.3 Trade agreements and arrangements ............................................................................30 2.3.1 WTO ......................................................................................................................30 2.3.2 Regional and preferential agreements ........................................................................31 2.3.3 Other agreements and arrangements .........................................................................31 2.4 Investment regime .....................................................................................................32 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 36 3.1 Measures directly affecting imports ...............................................................................36 3.1.1 Customs procedures and trade facilitation ...................................................................36 3.1.2 Customs valuation ...................................................................................................41 3.1.3 Rules of origin .........................................................................................................42 3.1.4 Tariffs ....................................................................................................................44 3.1.4.1 Structure .............................................................................................................44 3.1.4.2 Tariff bindings ......................................................................................................47 3.1.4.3 Tariff concessions .................................................................................................48 3.1.4.4 Tariff preferences ..................................................................................................48 3.1.5 Other charges affecting imports .................................................................................49 3.1.6 Import prohibitions, restrictions and licensing .............................................................51 3.1.7 Anti-dumping, countervailing and safeguard measures .................................................55 3.1.7.1 Anti-dumping and countervailing measures ..............................................................55 3.1.7.2 Safeguard measures .............................................................................................57 3.2 Measures directly affecting exports ...............................................................................58 WT/TPR/S/360/Rev.1 • Paraguay - 3 - 3.2.1 Export procedures and requirements ..........................................................................58 3.2.2 Export taxes, charges and levies ................................................................................58 3.2.3 Export prohibitions, restrictions and licensing ..............................................................59 3.2.4 Export support ........................................................................................................60 3.2.4.1 Exemption from internal taxes ................................................................................60 3.2.4.2 Drawback (refund of customs duty) and temporary admission for inward processing procedure .........................................................................................................60 3.2.4.3 Tax credits for exporters ........................................................................................61 3.2.4.4 Free zones ...........................................................................................................61 3.2.4.5 Maquila ................................................................................................................64 3.2.4.6 Export subsidies ...................................................................................................65 3.2.4.7 Export promotion and financing ..............................................................................65 3.2.4.7.1 Export promotion ...............................................................................................65 3.2.4.7.2 Export financing, insurance and guarantees ...........................................................66 3.3 Measures affecting production and trade .......................................................................67 3.3.1 Incentives ...............................................................................................................67 3.3.1.1 Overview .............................................................................................................67 3.3.1.2 Investment incentives ...........................................................................................67 3.3.1.2.1 Overview ..........................................................................................................67 3.3.1.2.2 Law No. 60/90 ...................................................................................................68 3.3.1.2.3 Promotion of investment in public infrastructure and the expansion and upgrading of goods and services provided by the State ...........................................................68 3.3.1.2.4 Investment guarantees, the promotion of job creation, and economic and social development ............................................................................................................68 3.3.1.2.5 Raw materials import regime ...............................................................................69 3.3.1.2.6 Automotive regime .............................................................................................69 3.3.2 Other regimes and benefits .......................................................................................70 3.3.3 Standards and other technical requirements ...............................................................71 3.3.3.1 Technical regulations .............................................................................................71 3.3.3.2 Standards and metrology .......................................................................................74 3.3.3.3 Conformity assessment..........................................................................................75 3.3.3.4 Accreditation ........................................................................................................75 3.3.4 Sanitary and phytosanitary regulations .......................................................................76
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