Country report : May 16th, Paraguayan Independence Day

H.E. RAUL SILVERO, Ambassador of the Republic of PARAGUAY
H.E. RAUL SILVERO, Ambassador of the Republic of PARAGUAY

It is an honor to be able to share with NdN Media Group & The Seoul City Magazine and the Korea Culture Ambassador Friendship Association this special moment of the year 2020, in which all the countries are facing the difficult circumstance of fighting against the spread of Covid-19 in the world, and the experience of the Republic of Korea in reducing this disease in its territory, is one of the emblematic examples and most positive in the world.
 
Please touch upon the desire and willingness of President MARIO ABDO BENITEZ to bolster relations with Korea in the years to come.
Today, Paraguay has an active role in the international community, and the different international forums. Since the assumption, in August 2018, of President Mario Abdo Benitez to the first magistracy of the Republic, in accordance with the guidelines, defined and executed by the Ministry of Foreign Affairs, Paraguay is working very hard at the regional and world level to strengthen our bilateral and multilateral relations, which allow us to face the challenges of our own development, such as poverty reduction, the creation of jobs, mainly for young people, and technological development.
Paraguay participates very actively in the construction of a strong multilateral system, in which international law prevails. A country with external projection is a country that generates opportunities for its people. This is even truer for Paraguay, whose main literary figure, Augusto Roa Bastos, described it as an "island surrounded by land". For this reason, the Government of Paraguay will continue to strive for the strengthening of its relations with all the countries with which we maintain diplomatic relations. Paraguay, as a country without maritime coasts, therefore; faces diverse and particular challenges, typical of this geographic condition, which is why,  it has implemented a proactive policy of diversification of its international relations, in the political, economic and commercial sphere. In this sense, our country is strengthening its presence in Asian countries. Likewise, for the paraguayans, regional integration, through the construction of Mercosur, economic block that includes Argentina, Brazil, Uruguay and Paraguay, is a must, not an option
Today, Paraguay is a vibrant democracy and has one of the most prosperous and fastest growing economies in the region. Paraguay gives a relevant role to the rule of law, respect for human rights and a political system based on democracy.
The Republic of Korea, for the past 58 years, has been a nation close to the affections of the Paraguayan people and a strategic ally to achieve the desired development. Although both countries are geographically distant and historically different, Paraguay and Korea share various commonalities. Solidarity has been a strong element in our relationship. In 1965, Paraguay opened its doors to thousands of Korean immigrants, who, in search of a new beginning, left from the Port of Busan towards the Land Without Evil, Paraguay. And this year, 55 years since the arrival of the first group of Korean migrants to Paraguay, the Korean community, composed of approximately seven thousand people, is an active part of Paraguayan society.
The relations of friendship with the Republic of Korea have not only been strengthened over the past five decades, but have reached a point of maturity in its various manifestations. In this regard, it is worth mentioning the permanent support that Paraguay has shown and demonstrated to the Republic of Korea in the different international forums, as a natural way of expression between two nations that share common values and interests and, very particularly, to be one of the most important strategic allies for Paraguay. The Paraguayan Government has the interest to strengthen the relationship with the Government of the Republic of Korea, through the progress and the realization of a Strategic Partnership for the coming years.

Executive Vice chairman Choe Nam-suk(left) interview Paraguayan Ambassador at the Embassy office.
Executive Vice chairman Choe Nam-suk(left) interview Paraguayan Ambassador at the Embassy office.

How is Paraguay’s role & responsibility to tackle regional issues in the South American continent for its entire development or integration, for instance.
Paraguay is a founder member of the Southern Common Market (MERCOSUR); the organization constitutes one of the mainstays of its foreign policy, its main regional integration objective, and its platform for the negotiation of agreements beyond the MERCOSUR region. Paraguay is undergoing a process of becoming more deeply integrated into MERCOSUR and achieving the objectives set out in the Treaty of Asuncion. MERCOSUR has maintained its importance as a destination and origin for Paraguay's exports and imports and is the country's chief trading partner. MERCOSUR member States negotiate trade agreements jointly both within the Latin American Integration Association (LAIA) and at extra-regional level. MERCOSUR has finished last year negotiation with European Union and the European Free Trade Association (EFTA).  MERCOSUR and the Pacific Alliance also have a mechanism for dialogue in which they are exploring areas of common interest in relation to regional economic integration.  MERCOSUR is negotiating a number of free trade agreements with countries and groups of countries, including with the Republic of Korea.
Paraguay is part of the Development Centre of the Organisation for Economic Co-operation and Development (OECD), an international forum that will enable Paraguay to coordinate the design and implementation of public policies and good practice to maximize inclusive growth and economic and social development, and to receive advice and share experience via a platform for dialogue with OECD member countries. The Government of Paraguay attaches great importance to agriculture and to the three pillars of the multilateral agricultural negotiations (market access, export subsidies, and domestic support) in achieving true liberalization and reform of the agricultural market, and to special and differential treatment for the land-locked developing countries with small and vulnerable economies.

 BAHIA ASUNCION
BAHIA ASUNCION

Please mention about investment environments of Paraguay for Korean investors.
Paraguay is one of the most open economies in the world. We understand that interaction with the world is a primordial element to generate development. Alliances are considered essential as a way to improve global integration.
Legal stability and respect for foreign and national investments is also one of the fundamental axes of our state policy followed by the current Government. In this context, we invite businessmen from Korea to visit Paraguay and evaluate the many opportunities for investment we have in our country, which has abundant human and natural resources for the development of competitive businesses worldwide. In addition to its qualified young people, its fertile land, having a large reserve of fresh water and being a great producer of food and renewable energy, among others, our country has tariff and non-tariff advantages for the access of its products in the countries of the region. Up to the present, numerous companies and entrepreneurs of the Republic of Korea have installed and are in the process of installing their factories, companies and ventures in various economic sectors of Paraguay, taking advantage of the multiple advantages and guarantees offered.
Also, Paraguay is part of MERCOSUR, and Korea have started negotiations with the aim of signing a Trade Agreement, to promote a greater relationship in the economy sector, providing more opportunities for businessmen of both Parties. During 2020, the fifth round of negotiations has been carried out and other negotiation rounds are planned for this year.
Indeed, in addition to the strong political and cooperation relations, the commercial pillar is an important part of our relationship, from which Korean and Paraguayan businessmen are increasingly benefit. In this way, Paraguayan companies offer Korean consumers products from the rich Guarani land, such as the natural sweetener known as stevia, yerba mate, chia, sesame, meat products, charcoal, soy and derivatives, leather, among other products.

Costanera Encarnacion
Costanera Encarnacion

In relation to worldwide Coronavirus-19 pandemic, what are the corresponding measures of Paraguay Government and any plans to import Korea’s detections diagnosis kit including medical equipment etc, from Korea.
As a global coronavirus pandemic spread around the world, landlocked Paraguay did not wait, imposing a strict lockdown in early March, before neighboring countries. The result: the fewest cases in the region. Paraguay with a population of around 7 million people has about 230 confirmed cases and nine deaths. According to  representative of the World Health Organization in Paraguay,  the country's success was due to aggressive social distancing measures. Paraguay's government shut schools and suspended large events in the second week of March. Shortly later, it closed its borders, airports and ordered a total quarantine of the population with very few exceptions.
The Government of the Republic of Korea provides invaluable cooperation to the Republic of Paraguay in this situation of the COVID-19 pandemic. Equipment, materials, reagents and other supplies for the fight against the coronavirus will be sent to Paraguay in our territory. Paraguay is also buying many of these materials and equipment from the Korean companies.

Please touch upon Paraguay Government’s strategies to increase economic ties with Korea in both countries’ strategic industry fields, such as Start-ups, Fintech, etc.,  including the two countries’ joint projects in the 3rd country , to name just a few.
In the eagerness to become a knowledge economy, Paraguay is strongly committed to train and educate its citizens and public servants. The Government of Korea has collaborated in this task by providing undergraduate and postgraduate scholarships, to Paraguayan young people, who come to this country attracted by the prestige of Korean education. Strong support for Education has always been the secret of the most develop countries and, in this case, the main pillar of the "miracle" of Korea. In this regard, I would also like to express my gratitude to the Office of Education of the Province of Chungbuk, which through its cooperation has trained, until this year, more than two hundred teachers and donated equipment and teaching materials for schools in Paraguay In the other hand, I must say that for the first time Paraguay, in December 2018, was elected as a member of the Board of the Global Green Growth Institute (GGGI) for the period 2019-2020, which demonstrates a desire for a better and greater international insertion of Paraguay and creation of conditions for cooperation in environmental matters. As for the efforts to modernize the government and the service it provides to its citizens, Paraguay and Korea have signed a Memorandum of Understanding on Cooperation in E-Government. The cultural sector is fundamental for the understanding of different nations and that is why we find ourselves, together with the Korean institutions, working in various projects that will allow us to further strengthen the friendship between our people.

vkdkcostanera encarnacion
vkdkcostanera encarnacion

Can you make an evaluation of the bilateral relationship between the Republic of Korea and Paraguay?
This year, on the occasion of the 58th Anniversary of the establishment of diplomatic relations between the Republic of Korea and Paraguay, our relationship has been developed considerably with more exchanges in various sectors. And Paraguay always has been supporting the Republic of Korea on international stage. The cooperation offered by Korean government has significantly contributed to the economic and social development of Paraguay. Currently, there are more than 7, 000 Korean emigrants living in Paraguay, since 1965, contributing their efforts to our country.Paraguay has a great potential as a production and logistics base for entry into the Brazilian and Argentine markets, because its tax system is simplified and one of the lowest level of taxes in the region, its production costs is lower compare to Argentina, Brazil and Uruguay, and many other benefits for foreign investors.
One example is THN, a Korean company established in Paraguay, an automobile parts company aimed at the Brazilian market that has built production bases in my country, due to its simplified labor management and low wages.  Another Korean company, the Dongwha Company is starting its operation in Paraguay, producing diapers and ladies’ hygienic towels. The Paraguayan Government and Companies would like to forge collaborative relationships such as strategic alliances, joint ventures, and technical cooperation with Korean Companies.
Paraguay would like to work with the Republic of Korea in order to establish a Technology Innovation Center or a Trade Incubator in the Paraguayan territory that would be used by SMEs from Paraguay and Korea aiming to reach Brazilian, Argentina and Uruguay’s market.

What are the areas in your country where you want Korean companies to invest and what are the areas where you wish your businessmen to invest in Korea?
The Paraguayan government encourage the Korean companies, known for their passion in work ethics, to aggressively explore the Paraguayan market.
The Korean companies have a great advantage when it comes to Paraguayan market because of the following:
Frist, the Korean firms were involved in the Paraguayan market and have operational offices in Paraguay. Secondly, the Korean companies have a good reputation in Paraguay because they undertook infrastructure projects and other investments. Thirdly, Paraguay has a good image of Korean products and they are more advances technologically. Some of the Korean companies in Paraguay are: THN Company, producing autoparts and wires for Hyundai Factory in Sao Paulo; Nutrihuevos,  It produces poultry products, mainly eggs, and has diversified its businesses to other areas, such as real estate and others.  Born Star de Donghwa Company, to start production of ladies’ hygienic towels and diapers;  Shopping Paris, a Korean commercial center in Ciudad del Este; Shopping Bonanza, another Korean commercial center in Asuncion; KBEC Korea, a waste treatment company, and many others.  Hyundai Motors, Samsung, LG and other Korean famous enterprises has offices in Paraguay.
The Paraguayan government promotes the production of electric vehicles in the country, based on its large production of electrical energy. We hope that Korean companies in this sector can establish in Paraguay to manufacture electric vehicles.The Government of Paraguay invites to the Korean companies in the sector of electric vehicles. Paraguay has a great potential in this area, since it is the first exporter of electrical energy in the world. Paraguay has a better environment and more advantages for the Korean companies in this area.

Conmebol
Conmebol

Please comment on mid-term & long-term Paraguay national vision, including its economic development schemes as a frontrunner of Latin America economy.
The National Development Plan Paraguay 2030 (PND 2030) is a strategic framework that sets out Paraguay's roadmap to sustainable, inclusive economic development. PND 2030 is  in line with the United Nations Sustainable Development Goals (SDG). This is the first long-term roadmap to set out a national strategy and identify specific actions to be implemented by the public authorities when designing public policies.The three main lines of action relate to the following objectives: (1) poverty reduction and social development; (2) inclusive economic growth; and (3) integration of Paraguay into the world. Each goal reinforces the main strategies with specific plans that will guide and underwrite the targets set. These include mechanisms to ensure high-calibre employment, support for MSMEs, use and availability of renewable energy resources and the embedding of national production resources into the region's global value chains.
In line with the Paraguay 2030 Development Plan, national economic policy will be geared to consolidating the pace of inclusive economic growth based on greater diversification of production and the involvement of all sectors of society. The National Government will continue to focus its efforts on improving conditions to facilitate investment in the country, and to promote free competition and free movement of capital, market access and scientific and technological transfer, together with a solvent financial market.
Paraguay also attaches importance to reducing its logistics costs in international trade, especially those associated with its status as a landlocked developing country. Accordingly, the Paraguay Masterplan for Transport and Logistics sets out the general outline for developing infrastructure and connectivity.
Report  Kim Do-kyun

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