Honduras and El Salvador are jointly charting a path toward the productive integration of their border region to attract foreign investment and establish a strategic economic corridor. Recognizing the potential for economic transformation, both nations are implementing a comprehensive plan that aligns infrastructure development with business incentives to create an attractive investment destination.

Historically left behind in economic development, the border area between Honduras and El Salvador is about to turn a new page. With a shared agenda, both countries have agreed to collaborate in transforming the southeastern region into a regional investment hub. The primary objective is to leverage geographic advantages and sectoral strengths to present compelling investment opportunities in Honduras and El Salvador.

Both nations are betting on a logistics and industrial strategy that could reshape the economic landscape of the Northern Triangle. By enhancing connectivity and facilitating trade, they aim to stimulate economic activity, generate employment, and attract sustainable investments that will contribute to long-term regional development.

A Shared Vision with Presidential Backing

This initiative is not occurring in isolation. It is part of broader commitments made by Presidents Xiomara Castro and Nayib Bukele, who are advancing an economic diplomacy agenda through concrete plans and initiatives. Their administrations recognize that regional cooperation is crucial to overcoming historical economic challenges and ensuring that growth benefits all regions of both nations.

The recent high-level binational technical meeting brought together officials from the National Investment Council (CNI) of Honduras, the Office for Investment Promotion, and their counterparts from El Salvador. During this meeting, they defined key actions aimed at attracting sustainable investments and positioning the region as a competitive platform in the international arena.

The technical teams focused on five strategic sectors: agribusiness, tourism, infrastructure, manufacturing, and energy. These industries hold transformative potential for the region and offer direct access to the Pacific Ocean, a key point in global value chains. By fostering growth in these sectors, Honduras and El Salvador seek to provide a fertile ground for foreign direct investment while ensuring sustainable economic benefits for local communities.

Dry Canal, Ports, and Border Crossings

One of the agreement’s most significant pillars is integrating key infrastructure: Honduras’ Dry Canal, El Salvador’s Port of La Unión, and Puerto Cortés. These considerable projects represent critical logistical assets that can enhance the movement of goods, making the region a key node in international trade.

In addition to these significant projects, border crossings will be modernized to facilitate the flow of commerce and reduce bureaucratic bottlenecks that have historically hindered trade. The modernization efforts will allow businesses to operate more efficiently, improving the overall investment climate.

Representatives from both delegations emphasized the importance of these efforts: “The objective is clear: to transform the southeastern region into an efficient and competitive hub within international value chains.” With improved infrastructure and a commitment to streamlining trade, the governments of Honduras and El Salvador are working to unlock significant investment opportunities, creating an economic environment that attracts multinational companies and regional enterprises alike.

A Binational Presentation of Opportunities

Both countries have agreed to move forward with a Binational Presentation of Opportunities as part of the strategy. This initiative will showcase the competitive advantages of investing in the border region between Honduras and El Salvador. The presentation will accompany a joint country profile, a trade mission in October, and coordinated participation in the Regional Expo Fair in June, with support from the Honduran Ministry of Foreign Affairs.

These coordinated efforts align with CNI’s Vision 2030, which includes Guatemala’s consolidation of an integrated regional investment offering. By working together, these three nations aim to create a unified investment region that appeals to international markets and enhances economic resilience.

A Strategic Corridor for Development

Southeastern Honduras and eastern El Salvador have historically been marked by migration and economic stagnation. However, this narrative is shifting. Today, the region is emerging as the heart of a new cross-border economic corridor, capable of attracting investment in dynamic sectors such as clean energy, export-oriented agribusiness, and sustainable tourism.

By focusing on these high-growth industries, the governments of both countries are addressing long-standing development gaps while opening new economic frontiers. The commitment to creating a stable, business-friendly environment ensures that companies considering expansion will find compelling investment opportunities in Honduras and El Salvador.

A Border That Unites, Rather Than Divides

At a time when regional challenges seem to be multiplying, Honduras and El Salvador are opting for a bold response: integration as a path to development. By fostering a shared economic vision and implementing concrete measures to support investment, both countries are demonstrating that cooperation yields tangible results.

This binational cooperation represents more than just an economic alliance; it is a geostrategic vision aimed at integrating both countries into 21st-century trade routes. By developing a robust, connected, and sustainable logistics platform, Honduras and El Salvador are ensuring that their economies remain competitive in an increasingly globalized world.

With agreements that go beyond rhetoric and an ambitious yet tangible vision, both nations are laying the foundations for a new economic narrative in Central America. The southeastern region will no longer be a forgotten borderland but rather a regional growth engine where investment and cooperation drive prosperity. If the roadmap is successfully implemented, investors will discover unparalleled investment opportunities in Honduras and El Salvador, transforming the region into a beacon of economic progress for the entire Northern Triangle.

The U.S. multinational will also open two new distribution centers in the Bajío region and Tlaxcala, featuring artificial intelligence and robotics.

On March 27, 2025, Walmart made a significant announcement during President Claudia Sheinbaum’s daily press conference. The company will invest over $6 billion in Mexico in the coming year. This investment is accompanied by a significant expansion plan that includes opening two state-of-the-art distribution centers in the Bajío region and the state of Tlaxcala, incorporating advanced technologies such as artificial intelligence (AI) and robotics.

Walmart’s Expansion Plans in Mexico

As part of its broader strategy, Walmart will also open additional retail locations under its various store formats, including Bodega Aurrera, Sam’s Club, Walmart Supercenter, and Walmart Express. These new stores are expected to generate approximately 5,500 direct jobs, further bolstering Walmart’s presence in the country. This investment will contribute to the company’s extensive retail network, which already includes over 3,200 stores across nearly 700 municipalities in all 32 states of Mexico.

Ignacio Caride, Walmart’s general director for Mexico and Central America, confirmed the company’s commitment to the Mexican market. “We will open more stores under our Bodega Aurrera, Sam’s Club, Walmart Supercenter, and Walmart Express formats, generating approximately 5,500 direct jobs,” Caride stated during the press conference. This significant expansion underscores Walmart’s ongoing growth strategy in Mexico, where the company has maintained a strong foothold for over 65 years.

Walmart’s Role in the Mexican Economy

The company’s presence in Mexico goes beyond retail stores. Walmart operates a robust supply chain that supports over 30,000 domestic suppliers, 85% of whom are small and medium-sized enterprises (SMEs). This highlights Walmart’s role in supporting local businesses and fostering economic growth in the country. Additionally, Walmart claims that 83% of the products sold in its stores are “proudly made in Mexico,” highlighting its commitment to sourcing locally and supporting the national economy.

This investment in new stores and distribution centers aligns with Walmart’s broader goal of expanding its reach and providing employment opportunities nationwide. “This significant Walmart investment in Mexico will allow us to support Walmart’s more than 200,000 permanent jobs in the country,” Caride emphasized.

Walmart’s presence also significantly supports the national supply chain, helping ensure a reliable flow of goods throughout the country. The two new distribution centers, one of which will be located in the Bajío region—though the specific state and municipality have not yet been disclosed—and the other in Tlaxcala, will further optimize Walmart’s logistics capabilities. These centers will integrate cutting-edge technologies, such as AI and robotics, to increase operational efficiency and support the company’s continued growth in the region.

Walmart’s Long-Term Commitment to Mexico

Despite facing regulatory challenges, including a nearly $4.62 million fine in December 2024 for monopolistic practices following a four-year investigation, Walmart remains focused on its long-term prospects in Mexico. The Federal Economic Competition Commission (Cofece) penalized the company for monopolistic practices in the wholesale distribution market, following a complaint filed by Chedraui, one of its largest competitors. Although the decision was appealed, the fine underscored the company’s ongoing regulatory challenges in the country.

However, Walmart’s commitment to Mexico remains unwavering. “Walmart arrived in Mexico more than 65 years ago, and we will be here for the next 30, 60, or 90 years to continue strengthening the best shopping experience,” Caride expressed confidently. The multinational’s long-standing relationship with Mexico underscores its commitment to the country’s economy and retail sector.

The Larger Investment Landscape in Mexico

Walmart’s announcement follows another significant investment by Banco Santander’s chairwoman, Ana Patricia Botín, who recently committed over $2 billion to investments in Mexico. Additionally, Santander is launching Openbank, its fully digital bank, in the country. “Mexico has the most significant growth potential. It is one of the countries where we have invested the most in recent years and will continue to invest in the future,” Botín stated, further emphasizing Mexico’s appeal as a key investment destination.

The country’s economic growth prospects are strong, as evidenced by the Ministry of Economy’s recent report, which shows that Mexico reached a historic high in foreign direct investment (FDI) in 2024. The total FDI reached $36.872 billion, a 1.1% increase from the previous year. This high level of investment reflects foreign companies’ confidence in Mexico’s economic future despite the challenges posed by external factors such as tariff threats from the U.S. government.

The Impact of Walmart’s Investment on the Mexican Economy

The Walmart investment in Mexico significantly boosts the country’s economy, both in terms of job creation and the growth of the retail and logistics sectors. Adding two new distribution centers and expanding its retail network will create thousands of jobs, supporting the continued growth of Mexico’s supply chain and retail infrastructure. Walmart’s commitment to sourcing products locally also strengthens the Mexican economy by fostering relationships with small and medium-sized businesses, which are critical to economic growth.

The investment also supports President Sheinbaum’s “Mexico Plan,” a strategy designed to attract foreign investment and boost the country’s economy amid ongoing uncertainty surrounding trade policies and tariffs, particularly those stemming from the U.S. government’s trade stance. This plan ensures that Mexico remains an attractive destination for foreign companies despite potential trade disruptions.

Conclusion: Walmart’s Long-Term Vision for Mexico

In conclusion, Walmart’s recent announcement of a $6 billion investment in Mexico underscores the company’s long-term commitment to the country. Expanding its retail stores and opening new distribution centers in the Bajío region and Tlaxcala will further enhance Walmart’s presence in Mexico while contributing to the country’s economic growth. As one of the largest employers and contributors to Mexico’s supply chain, Walmart’s ongoing investment reflects its confidence in the Mexican market’s future. The Walmart investment in Mexico clearly signals that the company intends to strengthen its operations in the country for the foreseeable future, providing jobs and opportunities for the local economy.

The Peru-India Free Trade Agreement would boost Peruvian exports and open up investment opportunities, particularly in key sectors such as mining and agriculture. If finalized, this agreement could position Peru ahead of its regional competitors.

The Peru-India Free Trade Agreement that Peru is negotiating could significantly reshape trade relations in the region, leading to substantial changes in investment and export flows. As the Asian giant expands its economic influence, the effects of this deal could shift the trade priorities of neighboring countries, including Chile, which will need to observe closely how this pact might alter regional dynamics.

Peruvian authorities are targeting the first half of 2025 as a crucial period for finalizing an agreement that could yield substantial benefits for exports and foreign investment.

Peruvian Foreign Minister Elmer Schialer was evident late last year when he stated that India would be a key partner for Peru. “We aim to have a Free Trade Agreement approved by both parties very early next year (2025). And this will be something spectacular,” he said.

These words reflect the optimistic outlook of Peruvian authorities regarding what they see as a vital agreement for the country’s economic growth. India, with a population of 1.45 billion, represents a market with enormous expansion potential for Peruvian exports.

Political Will

From the perspective of Minister of Foreign Trade and Tourism Desilú León, the Peru-India Free Trade Agreement is not only a priority for Peru but also potentially transforms its trade relationship with India.

During her recent visit to New Delhi, the minister emphasized that India’s political will aligns with Peru’s interests. “We have the political will of Indian authorities to move forward more quickly and accelerate this Free Trade Agreement,” León stated after meeting with India’s Minister of Commerce and Industry, Piyush Goyal.

Despite initial challenges, the Peruvian government has taken significant steps to revive negotiations that had stalled in 2024 due to political changes.

The Peru-India Free Trade Agreement would create new trade opportunities and facilitate a more aggressive expansion of Peruvian exports. In numerical terms, Peru’s exports to India have grown significantly in recent years, reaching approximately $4.7 billion in 2024. Gold, copper, and silver dominated the trade exchange, but Minister León stressed the importance of expanding exports into the agricultural sector. “With this Free Trade Agreement, new opportunities will open up, particularly for our agricultural sector,” she said.

“Enormous Demand”

Mónica Muñoz Nájar, an economist at the Network of Development Studies, provided key insights into the agreement’s potential. In an interview with RPP, she highlighted that India, one of the largest and fastest-growing economies, presents an “enormous demand” for agricultural products. However, she noted that Peru supplies only 0.7% of that demand.

This underscores the urgent need for the Peru-India Free Trade Agreement to lower tariffs, which are currently high and limit the competitiveness of Peruvian exports, particularly in products like cocoa, which faces tariffs of up to 39% in India. “If a trade agreement is reached that results in these tariffs being decreased, we would be looking at better conditions, and undoubtedly, our trade with them could expand,” the expert explained.

Peru’s agricultural sector has vast potential, especially considering that India—one of the world’s largest markets—has a growing demand for fruits, grains, and vegetables. However, Muñoz Nájar cautioned that current trade barriers, such as high tariffs on agricultural products, limit Peru’s ability to access this market.

The Peru-India Free Trade Agreement could significantly reduce these tariffs, enabling Peru to compete under more favorable conditions. The agreement could also facilitate importing Peruvian products such as blueberries, avocados, and grapes, which are gaining popularity in international markets.

New Investment Sources

Signing the Peru-India Free Trade Agreement would increase exports and provide access to new sources of investment for the Peruvian economy. During her visit to India, Minister León met with several entrepreneurs interested in investing in mining and agribusiness projects in Peru.

“We have investors interested in many of our mining projects, and we also have agribusiness investors looking to set up plants here in the country,” the minister explained.

This is crucial, as the FTA with India could attract new companies seeking to capitalize on preferential access to the Indian market, making Peru an even more attractive destination for foreign investment.

The Peru-India Free Trade Agreement also fits within a broader geopolitical context. India has played an increasingly significant role in global trade over the past few years. At the same time, China and the United States remain locked in a trade war that affects global economic stability. In this sense, the agreement between Peru and India could provide a strategic alternative for Latin American countries looking to diversify their trade relationships beyond traditional global powers.

Chile, for its part, should carefully monitor these developments. Suppose Peru succeeds in finalizing this agreement in the coming months. In that case, it will establish itself as a key partner for India and gain significant advantages over other countries in the region in terms of access to Asian markets.

Regarding the sectors that would benefit the most from this agreement, mining products will continue to play a crucial role in Peru-India trade. However, the deal could diversify Peruvian exports, benefiting Peru and other regional players, including Chile and Brazil. If Peru fully capitalizes on the Peru-India Free Trade Agreement, it could overcome trade barriers that limit access to emerging markets, such as India. Moreover, its relationship with India could boost trade in non-traditional sectors such as digital economy services, manufacturing, and tourism.

Chile, which has historically maintained strong trade ties with Peru, will likely watch how this FTA affects its competitiveness. While both countries compete for similar markets, the Peru-India Free Trade Agreement could give Peru a significant advantage in accessing new opportunities, particularly in the agricultural sector. In this context, Chile and other South American nations should remain vigilant to emerging opportunities and explore new strategies to sustain their competitiveness in international markets.

Looking Ahead: The Timeline

Minister Desilú León has been evident in outlining the next steps. During recent talks, she emphasized that the Peru-India Free Trade Agreement could be finalized in 2025 if negotiations progress as planned. For the Peruvian government, the priority is to negotiate the agreement quickly and seize opportunities before other countries in the region reach similar deals.

“If we move forward, as Minister Goyal has publicly stated, by placing greater emphasis on and accelerating our work, I believe we could finalize it this year,” León said.

In commercial terms, the Peru-India Free Trade Agreement would lead to greater diversification of Peruvian exports and solidify the country’s position in the mineral market, which remains the backbone of its economy. Peru is one of the world’s top mineral producers, and India, as a significant metal consumer, represents a key partner. However, reducing tariffs could enable Peru to enter high-potential markets for food products and textiles.

As the negotiations progress, the potential impact of the Peru-India Free Trade Agreement extends beyond Peru and India. It could alter regional trade dynamics, prompting other countries to reassess their trade strategies. Chile, in particular, should pay close attention to how this agreement might reshape the competitive landscape in Latin America.

This Latin American country, which leads foreign investment in the region, continues establishing itself as a key destination for international investors.

Brazil: A Leader in Foreign Direct Investment in Latin America

In the dynamic economic landscape of Latin American countries, foreign investment in Brazil stands out as a leading force, surpassing nations such as Mexico and Argentina. This phenomenon highlights Brazil’s high competitiveness and the strategic support of the United States, which plays a crucial role in its economic growth. The country has solidified its position as the primary investment hub in Latin America, attracting billions of dollars annually and reinforcing its reputation as a stable and lucrative destination for investors.

U.S. Support and Strategic Investment in Brazil

The United States is one of Brazil’s most significant investors, with strong economic ties that drive growth across multiple sectors. U.S. investments in Brazil focus on technology, financial services, manufacturing, and renewable energy, enhancing global competitiveness. Several bilateral agreements between Brazil and the United States foster an environment encouraging foreign investment and ensuring mutual economic benefits.

One key reason for Brazil’s investment attractiveness is its vast market size, which offers extensive opportunities for multinational corporations to expand their operations. The government has also implemented economic policies that favor foreign investors, ensuring regulatory stability and reducing bureaucratic hurdles.

Key Factors Driving Foreign Investment in Brazil

Several factors contribute to Brazil’s success in attracting foreign investment. These include:

• Economic stability and favorable fiscal policies: Brazil’s government has implemented pro-business policies that ensure a stable investment climate.
• Large domestic market: With a population exceeding 200 million, Brazil presents substantial opportunities for consumer-driven industries.
• Diverse economic sectors: Key industries, including energy, mining, and technology, attract investors seeking growth opportunities.
• Infrastructure development: Continuous transportation, logistics, and digital infrastructure improvements have enhanced Brazil’s appeal.
• Strong international trade agreements: Brazil’s participation in global markets through agreements such as Mercosur further strengthens its investment potential.

How Brazil Surpasses Mexico and Argentina in Foreign Investment

Brazil has not only outperformed Mexico and Argentina in terms of foreign investment but also solidified its leadership by diversifying its strategic sectors. Despite regional economic challenges, the country remains competitive and attracts foreign capital.

Comparison with Mexico

While Mexico benefits from its proximity to the United States and its integration into the USMCA (United States- Mexico- Canada Agreement), it faces obstacles such as regulatory changes in the energy sector. These changes have created uncertainty among investors, reducing Mexico’s attractiveness compared to Brazil. Additionally, Brazil’s ability to maintain a stable economic climate despite global disruptions gives it an edge over Mexico.

Comparison with Argentina

Despite its vast natural resources and potential in key areas such as lithium and agribusiness, Argentina has struggled to attract investment due to high inflation and strict currency controls. In contrast, foreign investment in Brazil benefits from a more predictable economic environment, making it a more desirable destination for long-term investments.

Top Sectors Attracting Foreign Investment in Brazil

Oil and Gas

Brazil remains one of Latin America’s largest oil producers, with investments from major global companies, including Petrobras and ExxonMobil. The country’s offshore oil reserves and consistent regulatory framework make it a key player in the worldwide energy market.

Automotive Industry

The automotive industry plays a crucial role in Brazil’s economy, with manufacturing plants from major brands like Volkswagen, General Motors, and Ford. Brazil’s large consumer market and strong industrial base make it a preferred location for automobile production and exports.

Renewable Energy

With growing global interest in sustainability, Brazil has positioned itself as a leader in renewable energy. The country’s hydroelectric, wind, and solar power investments continue attracting foreign investors seeking green energy opportunities. U.S. and European investors have been particularly active in financing renewable projects.

Financial Services and Fintech

The rapid growth of fintech companies and the digitalization of financial services have made Brazil a prime destination for investment in the financial sector. The country’s banking system is one of the most advanced in Latin America, with innovative payment solutions and expanding digital banking services driving growth.

Technology and Innovation

Brazil’s technology sector has seen significant investments from major multinational companies. The rise of startups and increased funding for tech-driven businesses have positioned the country as an emerging innovation hub in Latin America. The government’s incentives for tech-based enterprises further encourage foreign capital inflow.

Government Policies Supporting Foreign Investment in Brazil

Brazil’s government has implemented several measures to foster a pro-investment environment. These include:

• Tax incentives: Reduced tax rates for foreign companies investing in specific industries.
• Simplified business regulations: Streamlined processes for establishing businesses and obtaining necessary permits.
• Infrastructure development initiatives: Large-scale projects aimed at enhancing transportation and logistics networks.
• Foreign trade agreements: Expanding trade partnerships to facilitate market access for international investors.

Challenges and Future Prospects for Foreign Investment in Brazil

Despite its leadership in foreign investment in Brazil, the country faces challenges such as bureaucratic complexities and occasional political uncertainties. However, ongoing economic reforms and efforts to improve transparency in business operations are expected to enhance investor confidence further.

Looking ahead, Brazil is well-positioned to maintain its status as the top destination for foreign investment in Latin America. The country’s diversified economy, strategic international partnerships, and commitment to sustainable growth will continue to attract global investors seeking stable and profitable opportunities.

In conclusion, foreign investment in Brazil remains robust, with strong support from the United States and other global investors. By leveraging its economic strengths, diverse industrial sectors, and investor-friendly policies, Brazil continues to set itself apart as the premier investment hub in Latin America. As the country continues to enhance its business environment, its appeal to foreign investors will only increase, ensuring long-term economic growth and prosperity.

The Paraguayan maquila sector has become a magnet for international brands, including Lacoste, Fila, and Wrangler. This trend is driven by tax advantages, a strategic location, and a skilled workforce, making Paraguay an attractive destination for manufacturing and export-oriented industries.

A Growing Hub for International Brands

Paraguay has successfully positioned itself as a strategic destination for the maquila industry, attracting major global brands looking for a combination of efficiency, competitive costs, and a favorable production environment. The influx of renowned companies reflects the country’s ability to provide an optimal business climate, positioning it as an essential regional manufacturing hub with an international reach.

The maquila regime in Paraguay has facilitated the diversification of production across multiple industries, including apparel, auto parts, footwear, food, and technology services. This expansion has generated formal employment and strengthened the country’s standing in the region as a reliable partner for industrial production in Paraguay. According to Carina Daher, President of the Paraguayan Chamber of Maquiladora Companies (CEMAP), additional global brands, such as Good American and Polo Wear, further highlight the growing confidence in the country’s manufacturing capabilities.

Expanding Beyond Traditional Manufacturing

While the maquila sector in Paraguay is well-known for its tangible products, it is also making strides in producing intangible goods and services. Companies such as Itaú Brazil, Tigo Bolivia, and telemedicine providers for regional hospitals have established operations in the country. “This sector has grown significantly, both in tangible products and services, demonstrating the maquila industry’s versatility and ability to adapt to diverse global needs,” Daher explained.

Paraguay has demonstrated its ability to manufacture various products, including apparel, footwear, auto parts, food products, and plastics. However, in recent years, the country has expanded into emerging sectors, including technology, software development, and renewable energy. These new focus areas reinforce Paraguay’s reputation as a hub for industrial production in Latin America, capable of competing with larger economies.

Strategic Geographic Distribution of Maquiladoras

The impact of the maquila industry is evident across Paraguay, with strategic distribution in key regions. Alto Paraná leads the concentration of maquiladoras, hosting 47% of companies operating under this regime. It is followed by the Central department, which accounts for 29%, and Asunción, with 9% of the country’s maquiladora operations.

This distribution is primarily influenced by several key factors, including proximity to crucial markets such as Brazil, Argentina, Bolivia, and Chile, access to industrial properties, and a tax regime that offers significant fiscal incentives. These elements collectively make Paraguay an ideal destination for companies seeking efficient and cost-effective industrial production in Paraguay. The country’s competitive location and policies continue to attract foreign investors looking to establish long-term manufacturing operations.

Employment and Workforce Development

The maquila industry in Paraguay plays a critical role in employment generation, with over 32,000 people directly working in the sector. One notable aspect of this workforce is the high percentage of women in leadership roles within various industrial plants. The sector prioritizes continuous employee training, ensuring that workers develop the technical skills necessary to maintain the high quality of products manufactured in Paraguay.

“Maquiladoras invest in their employees, offering opportunities for professional growth and optimal working conditions. This is essential to ensure a skilled and motivated workforce,” Daher emphasized. This commitment to training has contributed to a virtuous development cycle, strengthening industrial production in Paraguay while enhancing professional standards across multiple industrial and technological sectors.

Paraguay’s Competitive Advantages in Manufacturing

Paraguay differentiates itself from other countries in the region due to a unique combination of factors. The country’s strategic location allows easy access to key regional markets, including Brazil and Argentina. Furthermore, its labor force is both skilled and cost-competitive, providing an advantage for businesses looking to optimize manufacturing expenses.

Another significant factor is Paraguay’s favorable tax environment. Under the maquila regime, companies only pay a 1% tax on the added value within the national territory. “The tax regime and proximity to regional markets are determining factors. Additionally, Paraguayan companies are highly receptive to creating joint ventures, fostering strategic alliances that benefit both parties,” Daher noted. This business-friendly climate further enhances Paraguay’s attractiveness for industrial production, encouraging long-term investments in the sector.

Future Prospects: Innovation and Diversification

Looking ahead, the Paraguayan maquila industry has demonstrated remarkable resilience and sustained growth, even during global economic downturns. The country’s ability to adapt and expand its manufacturing base ensures its continued appeal to foreign investors.

CEMAP’s president envisions a promising future for Paraguay’s industrial production, emphasizing the importance of continued innovation and diversification. The country can further strengthen its position as a regional industrial hub by attracting investments in advanced manufacturing, medical device production, and electronics. Paraguay can emerge as a regional industrial hub by adopting the right strategies. This requires investment in infrastructure, streamlining processes, and a focus on technology,” Daher concluded.

With its favorable business environment, skilled workforce, and strong governmental support for manufacturing, Paraguay is poised to continue expanding its role in industrial production. As more international brands recognize the country’s potential, the maquila sector will continue to be a cornerstone of economic growth, industrialization, and job creation, further solidifying Paraguay’s position in the global market.