weighted score 5.3 · nine dimensions
Country Risk Profile
Paraguay
Sourcing risk, regulatory exposure and audit intelligence for Paraguay-origin supply chains.
Forced & child labour
5
TVPRA listings for bricks, corn, cattle, and sugarcane. Chaco region forced labour risk in cattle ranching. Overall prevalence moderate but under-documented.
Worker rights & FOA
5
Core ILO conventions ratified. Enforcement limited in rural and agricultural sectors. Informality is high — estimated 60%+ of workforce in informal employment.
OHS & audit transparency
4
Occupational safety enforcement weak outside formal sector. Third-party audit coverage limited to major agricultural exporters. Chaco operations largely unaudited.
Food & product safety
4
SENACSA (livestock) is the primary food safety authority. Beef export certification meets importing country requirements. Broader food safety infrastructure is limited.
Environmental & regulatory
8
Chaco deforestation among the highest globally — driven by cattle and soy expansion. EUDR creates massive compliance exposure for soy and beef. Domestic enforcement of environmental protections is weak.
Governance & anti-corruption
7
TI CPI 28/100. Institutional capacity for anti-corruption enforcement is weak. Judiciary independence questioned. Colorado Party dominance limits political accountability.
Tariff & preferential access
5
Mercosur member but EU-Mercosur FTA not ratified. No standalone EU FTA. MFN tariffs apply to EU trade. Preferential access limited to regional partners.
Non-tariff barriers
4
No active EU trade defence measures against Paraguay. EUDR due diligence requirements for soy and beef are the primary non-tariff compliance burden.
Supply chain traceability
6
Soy traceability improving through industry initiatives. Cattle supply chain multi-tier visibility remains weak, particularly for Chaco-origin beef. Informal sector creates documentation gaps.
Labour & Social Risk
Labour & Social Risk
- TVPRA listings
- US Department of Labor TVPRA list includes Paraguay for bricks, corn, cattle, and sugarcane produced with child labour or forced labour. These listings create due diligence obligations for buyers sourcing these commodities from Paraguay.
- Forced labour risk
- Forced labour risk is concentrated in the Chaco region — cattle ranching and indigenous communities. Brick-making operations in peri-urban areas also flagged. Overall forced labour prevalence is moderate but under-documented.
- Worker rights
- Paraguay has ratified core ILO conventions including C087 and C098. However, enforcement capacity is limited, particularly in rural and agricultural sectors where informality is high.
Environmental & EUDR Exposure
Environmental & EUDR Exposure
- Chaco deforestation
- Paraguay's Gran Chaco has experienced among the highest deforestation rates globally — driven by cattle ranching expansion and soy cultivation. Between 2001 and 2020, Paraguay lost approximately 6 million hectares of tree cover, with the Chaco accounting for a significant share.
- EUDR soy & beef
- Paraguay is a major soy exporter (#4 globally) and beef exporter. Both commodities fall under EUDR scope. EU importers must demonstrate that soy and beef products are deforestation-free and legally produced — creating massive due diligence exposure for Paraguay-origin supply chains.
- Environmental score
- Environmental & regulatory dimension scores 8 — reflecting the severity of Chaco deforestation, EUDR commodity exposure, and weak domestic enforcement of environmental protections.
Governance, Trade & Tariffs
Governance, Trade & Tariffs
- Corruption
- Transparency International CPI score of 28/100 — among the lowest in South America. This drives the Governance & anti-corruption dimension to 7. Institutional capacity for anti-corruption enforcement is weak.
- EU FTA status
- No EU FTA in force. EU-Mercosur agreement not ratified. Paraguay trades with the EU under MFN tariff terms. Tariff & preferential access dimension scores 5 — reflecting absence of preferential access.
- Traceability
- Supply chain traceability for soy and beef is improving through industry initiatives but remains incomplete. Multi-tier visibility into Chaco-origin cattle supply chains is particularly challenging.