Uruguay, nestled between Brazil and Argentina, has steadily built a reputation as a stable, business-friendly nation offering compelling advantages for companies seeking a strategic location for nearshore manufacturing. With world-class infrastructure, a highly educated workforce, favorable tax regimes, and well-developed logistics networks, Uruguay stands out in Latin America as an attractive hub for foreign direct investment (FDI). Among its most strategic assets are its growing number of industrial parks—modern, strategically located spaces that facilitate efficient manufacturing, logistics, and export activities. This post offers an overview of the most prominent industrial parks in Uruguay, explicitly tailored for site selection consultants and multinational companies evaluating new manufacturing destinations.

Uruguay boasts several prominent industrial parks that are located to optimize access to regional and global markets. These include:

Zonamerica (Montevideo)

Perhaps the most internationally recognized of Uruguay’s industrial parks, Zonamerica is a free trade zone located just outside Montevideo, the capital and primary port city. This park caters to high-tech, logistics, and services industries and has become a magnet for multinational companies such as Sabre, Tata Consultancy Services, and BASF. Its proximity to Carrasco International Airport and the Port of Montevideo ensures fast and cost-effective connections to Brazil, Argentina, the U.S., and Europe. The park offers Class A industrial and office space, high-speed internet, redundant energy systems, and integrated services including customs, IT, and facility management.

Parque de las Ciencias (Science Park)

Located in Canelones near Montevideo, this specialized free trade zone is ideal for pharmaceutical, biotech, and high-value-added manufacturing. Tenants include global players like Mega Pharma and GlaxoSmithKline. The park offers direct access to Route 101, less than 5 kilometers from Carrasco International Airport, enabling streamlined export logistics. It provides top-tier infrastructure with specialized clean rooms, cold chain logistics, and an on-site customs office.

WTC Free Zone

Situated within Montevideo, this mixed-use zone supports manufacturing, logistics, and back-office operations. While primarily known for service-based tenants, it is expanding its capabilities for light manufacturing and packaging operations. WTC Free Zone is integrated into Montevideo’s logistics corridor and offers easy port access.

Zona Franca Colonia and Zona Franca Libertad

These industrial parks in Uruguay are ideal for manufacturing and agri-food operations. Located west of Montevideo, they provide strong access to agricultural suppliers and are well connected to regional road networks, allowing efficient freight movement into Argentina or to port terminals.

Uruguay’s industrial parks benefit from strong national infrastructure. The country ranks high in Latin America for road quality and has invested significantly in logistics corridors connecting major industrial zones with ports and border crossings. The Port of Montevideo is a deepwater facility capable of handling containerized and bulk cargo, while the new port in Nueva Palmira enhances access for agricultural and bulk commodities.

Utilities are reliable and competitively priced. Uruguay leads Latin America in renewable energy use, with over 98% of electricity generated from wind, solar, and hydro sources. This gives manufacturers a clear ESG advantage and contributes to energy cost stability. Water and waste management systems in the main industrial parks are ISO-certified and aligned with international sustainability standards.

Telecommunications infrastructure is robust, with fiber-optic connectivity widely available across all major industrial areas. This is particularly beneficial for data-intensive sectors such as electronics and biotech.

Uruguay’s workforce is highly educated and largely bilingual, with high literacy rates and strong technical skills. Labor availability is particularly strong in Montevideo and Canelones, where most industrial parks are located. These areas host a critical mass of engineers, technicians, and logistics professionals.

Average wages in Uruguay are competitive for the region. For example, a production line worker earns approximately USD 600–$800 per month, while technicians and mid-level supervisors earn between USD 1,200–$2,000.

Labor law in Uruguay is considered protective of workers but predictable for employers. Collective bargaining is standard practice, and union activity is widespread but generally cooperative. Employers must adhere to national labor agreements that cover sectors such as manufacturing, logistics, and services. Workweeks are capped at 44–48 hours, depending on the industry, and severance costs are clearly defined.

Access to talent development is facilitated by Uruguay’s national technical training institute (UTU), the University of the Republic, and private institutions offering vocational and sector-specific programs. Several industrial parks have also signed training agreements with local institutions to ensure a steady pipeline of qualified workers.

Uruguay consistently ranks as one of Latin America’s easiest places to do business, thanks to its transparent legal system, low corruption, and pro-investment policies. Foreign investors are treated equally under the law and can fully repatriate profits and capital.

A standout feature for companies is the country’s Free Trade Zone (FTZ) regime, which provides numerous incentives:

• 100% exemption from corporate income tax (IRAE)
• No VAT or import/export taxes within the FTZ
• No customs duties for goods entering or leaving the park
• No local taxes on assets, services, or real estate

These incentives are guaranteed by law for a renewable 30-year period, offering long-term predictability.

Environmental regulations in Uruguay are aligned with international standards. Industrial parks are required to file environmental impact assessments (EIA) for new construction and high-emission operations. However, the process is transparent and efficient, and Uruguay’s emphasis on renewables aligns well with manufacturers seeking sustainability certifications.

Lease rates for industrial buildings vary by location and amenities, but typically range from USD 5 to $8 per square meter per month in premium free zones like Zonamerica and Parque de las Ciencias. In less centralized zones, costs can be as low as $3.50/m². Build-to-suit options are standard and allow for tailored facilities at costs between $600–$800 per square meter for construction.

Operating costs—including utilities, security, and waste management—are generally lower than in neighboring Brazil or Argentina. Electricity costs average around $0.12 per kWh for industrial users. Facility management and 24/7 security are included in many free zone service packages. Waste disposal is managed according to ISO standards, and specialized waste (chemical, electronic, etc.) can be handled through certified service providers.

Logistics costs are favorable, particularly for exporters. Montevideo’s port provides weekly routes to Europe, the U.S., and Asia, with average container shipping costs from Montevideo to the U.S. East Coast ranging between USD 1,500 and $2,000 per TEU. Overland freight to São Paulo or Buenos Aires costs approximately $600–$900 per container, depending on weight and route. Uruguay’s customs procedures are streamlined, particularly within FTZs, where processing times are significantly reduced.

A defining strength of industrial parks in Uruguay is the sector-specific clustering effect, which enhances supply chain efficiency and innovation. For example, Parque de las Ciencias hosts a life sciences cluster that includes pharma producers, cold chain logistics firms, and quality assurance laboratories. This concentration supports rapid product development and regulatory compliance.

Zonamerica, on the other hand, functions as a tech and business services hub, with companies like TCS, Sabre, and Merck sharing digital infrastructure and bilingual talent pools. This has spurred the creation of ancillary businesses such as IT support firms, HR services, and training providers, forming a robust ecosystem.

Most industrial parks in Uruguay have a strong track record of supporting global firms through tailored onboarding, reliable utilities, and long-term lease flexibility. Park administrators often act as intermediaries with regulatory authorities, easing the bureaucratic burden for foreign investors.

For companies and site selection consultants seeking a low-risk, efficient, and cost-competitive destination for nearshore manufacturing, industrial parks in Uruguay offer a complete value proposition. With dependable infrastructure, a skilled labor force, generous tax incentives, and a stable regulatory environment, Uruguay competes favorably against larger regional players.

Whether your operation requires GMP-certified labs, Class A warehousing, or custom-built production facilities, Uruguay’s industrial park ecosystem is prepared to deliver. Moreover, the combination of renewable energy, efficient logistics, and top-tier training institutions makes Uruguay not just a viable location but a strategic one for companies focused on resilience, ESG compliance, and long-term scalability.

As demand for nearshore solutions continues to grow, industrial parks in Uruguay will remain pivotal in helping global manufacturers adapt to new economic realities and international trade dynamics.

Latin America’s digital infrastructure landscape is rapidly evolving, becoming a pivotal hub for driving new investments and unlocking substantial untapped economic potential. This dynamic shift is catalyzed by several factors: a renewed emphasis on regional connectivity, the rise of emerging digital economies, a clear and actionable digital agenda, a skilled and available workforce, and abundant renewable energy sources.

The Current Digital Landscape

Latin America’s digital journey has not been without its challenges. Compared to global averages, the region still trails in terms of digital economy advancement. However, there are noteworthy exceptions, such as Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, and Uruguay. These countries have emerged as front-runners, showcasing robust digital infrastructure growth and making significant strides toward a more connected and digitized future. In 2025, Latin America is transitioning from its traditional identity as a resource-exporting region to one that is more diversified, technologically advanced, and sustainably growing. This ongoing transformation is characterized by an increasing adoption of new technologies, a burgeoning digital economy, and proactive policies that are gradually addressing the digital divide. This economic transformation, underpinned by digital infrastructure in Latin America, is not only diversifying its economies but also propelling them toward new horizons of productivity and growth.

Region’s Economic Landscape and Outlook

Latin America is poised to ascend in the global economic hierarchy, leveraging its unique strengths. A significant catalyst for this anticipated economic ascent is the region’s abundant natural resources, which form the foundation of its emerging energy matrix. The region’s economies are growing more sophisticated, embracing diversification, value creation, and a greater focus on industries that require more complex technological inputs. Consequently, Latin America is transitioning from being a raw material supplier to a player with a more developed economic profile. The region’s economic metamorphosis is further energized by a highly proactive stance on digital matters. Nations are crafting detailed digital agendas that not only aim for widespread digital connectivity but also ensure a secure and equitable digital environment for all citizens, which is a foundational aspect of digital infrastructure in Latin America.

Country-level Highlights and Developments

Brazil stands tall as a green energy and agricultural giant, boasting one of the most formidable economies in the region. Enhanced by cutting-edge technological adoption, its production chains have seamlessly integrated precision agriculture, artificial intelligence, and satellite monitoring to yield improvements while reinforcing environmental stewardship. Brazil has also been a significant destination for the tech industry’s behemoths, witnessing a pronounced uptick in cloud investment and several cloud hyperscaler data centers materializing across the country. The country’s own efforts to enhance its digital infrastructure in Latin America are particularly noteworthy, underscored by its National IoT Plan and the widespread 5G rollouts in its principal cities, all of which are pivotal for smart agriculture, digital health, distance learning, and e-government initiatives crucial to bridging its digital divide.

Mexico’s prominence in the global nearshoring conversation has not gone unnoticed, with the nation swiftly transitioning into a manufacturing and innovation center. Its geographic proximity to the United States presents a strategic advantage, and its manufacturing and electronics industries remain strong due to significant foreign direct investment (FDI) and regional trade pacts, like the USMCA. It is the digital transformation Mexico has been undertaking, with burgeoning investments in data center projects and the formation of tech parks and innovation districts in key cities such as Querétaro, Guadalajara, and Monterrey, that is particularly impressive. These are all important components in Mexico’s growing digital infrastructure in Latin America that enable it to meet the connectivity and data processing demands of Industry 4.0, facilitate cloud-based logistics systems, and drive the digital transformation in the manufacturing sector.

The thriving startup scene across Argentina, Peru, and Uruguay is drawing international venture capital (VC) interest and becoming a vital source of high-impact innovations in fintech, edtech, healthtech, and agrotech. The fintech sector is booming across the region, presenting opportunities for new financial technology products and services.

Argentina, for example, is building a reputation as a new hotspot for tech talent and entrepreneurship, despite an otherwise turbulent macroeconomic landscape. The nation has a burgeoning community of developers, incubators, and investors fueling this dynamic innovation scene.

Uruguay, in many ways the poster child for digital innovation in the region, continues to reap the benefits of its “Digital Uruguay” initiative, which has been driving digital citizenship, e-government solutions, and universal fiber optic connectivity. It has also invested in developing digital literacy programs and incentivizing public-private cooperation.

Peru is also in the midst of making strides in terms of its tech infrastructure and startup ecosystems, with the help of its government’s StartUp Peru program and increasing interest in improving digital infrastructure in Latin America in more rural regions.

Colombia and Chile are other prime examples of how countries can successfully navigate the mix of innovation, macroeconomic stability, and investment in future-ready infrastructure.

Colombia is making large investments in transport and logistics infrastructure, but it is also moving in the digital space, with large government-backed initiatives to increase 4G and 5G coverage, improve cybersecurity, and empower e-commerce platforms. Bogotá is quickly becoming a tech leader in the region, with Medellín hot on its heels, earning the latter the nickname “The Silicon Valley of South America.”

Chile, meanwhile, is garnering enormous interest for data center investment and green tech. As a result of its political stability, energy security, and impressive sustainability credentials, companies such as Google, Microsoft, and Huawei have recently made announcements on major greenfield expansions in Chile, a clear sign of digital infrastructure in Latin America. Chile also has an aggressive digital agenda with plans for universal connectivity, as well as a focus on smart mining and artificial intelligence (AI)-powered resource management and environmental monitoring.

Panama, in particular, is an interesting case given its position in Central America as a natural logistical and financial hub between North and South America. As such, the country has been able to quickly accelerate its digital development to maintain its competitiveness. The recent National Digital Agenda outlined by the government featured ambitions such as expanding broadband access, improving digital government services, and promoting fintech. Its Digital Hub strategy is designed to position Panama as a regional leader in digital services.

Challenges and Risks

Even with these impressive wins, Latin America’s digital transformation is far from guaranteed and is also not without its challenges. In many ways, Latin America presents a microcosm of the larger global digital dilemma. While the region is witnessing the economic fruits of digitization, there remains a notable scarcity in public goods investments required for digital infrastructure in Latin America. The International Telecommunications Union (ITU) has found that merely 56.2% of individuals in Latin America had broadband connectivity, a stark contrast to the global average of 63.4%. This signals that the region faces an acute risk of digital marginalization if timely investments are not made.

Another pressing challenge is the overall reliability of telecommunications networks. The ITU report also suggests that an insufficient proportion of the region’s population has access to reliable telecommunications networks, even by pre-5G standards. This highlights the extent to which digital infrastructure in Latin America is not only a growth story in some leading economies but a significant digital catch-up issue that needs to be aggressively addressed by policymakers across the region to foster the anticipated connectivity-led productivity gains.

Wealth in renewables and minerals

Latin America’s energy transition is also supported by its abundant renewable resources and mineral endowments. Solar, wind, hydropower, and geothermal energy are plentiful across the region. This not only puts Latin America at the vanguard of the global energy transition but also helps drive the sustainability of data centers and cloud computing facilities. Clean energy and cloud/edge interplay is a particularly strong investment theme as data centers and hyperscalers take a zero-carbon path. Latin America is well placed to capture significant greenfield digital investment powered by renewables. Chile, Brazil, and Colombia are the most advanced in this area, but the trend is spreading quickly throughout the region.

Latin America is also a treasure trove of the minerals and metals that are needed for the global digital transition, from batteries and storage to next-gen smartphones and devices. Lithium, copper, cobalt, nickel, rare earth elements, and more are scattered around the region and are increasingly on the investment radars of countries and companies looking to supply the coming clean energy transition and digital shift.

Final Words

Latin America is a region at the crossroads of its traditional resource-exporting role and its new economic reality. This new reality, built on the region’s own momentum and world-class digital infrastructure, is characterized by an increasing adoption of new technologies, a growing digital economy, and policy actions that are starting to turn the tide on its digital divide. Latin America presents companies and investors a “sweet spot” of new clean energy, growing consumer markets, tech-savvy younger generations, and untapped digital connectivity potential waiting to be harnessed. Now is the time to invest in digital infrastructure in Latin America and turn Latin America’s potential into tangible growth.

Central American retail is going through a deep transformation that will project it in the coming years  as an increasingly international player in the commercial arena. Rather than simply fending off the invasion of international chains, Central American business groups are opting for expansion strategies and, little by little, are penetrating new markets and consolidating their business models to become a rival in many countries to the big chains that run across the continent.

This expansion in Central American retail has to do with the maturity of the region’s business environment, but it also projects a different view: not only local but increasingly global. Brands such as Grupo Unicomer and Grupo Calleja, both from El Salvador, are two of the most illustrative examples of how Central American companies are using their experience in the region to make inroads into much larger and more complex economies.

Grupo Unicomer: from the region to the world

Grupo Unicomer was founded in El Salvador and is already operating in more than twenty countries. The brand has over 25 years of history and has been recognized as one of the leading operators in Latin America and the Caribbean in the sale of appliances, technology, and durable goods.

Among its main portfolios of brands, it is worth highlighting the iconic retail stores La Curacao, Gollo, and Tropigas, in addition to RadioShack, with which, in 2015, the company completed one of its most strategic operations. It was then that Unicomer acquired the intellectual property rights and franchise contracts for RadioShack in Central America, South America, and the Caribbean.

In 2023, Grupo Unicomer acquired RadioShack’s intellectual property rights and domain assets at a global level, including in the United States, in what was a step towards the relaunching of the brand with a new value proposition based on product innovation, a superior shopping experience, and new marketing strategies designed for the demands of the digital consumer.

In April 2024, the company announced the official opening of the first RadioShack store in the United States and continues to accelerate its presence on the continent. At present, Unicomer has more than 1,255 points of sale in Latin America, the Caribbean, and the United States, with more than 397,000 square meters of consolidated retail space.

Grupo Calleja and its incursion in Colombia

Grupo Calleja is another key actor in the regional retail expansion scenario in the Central American region. The Salvadoran company, which is best known for its Super Selectos supermarket chain, closed 2023 by making headlines with the announcement of a majority acquisition of Grupo Éxito, a leading South American retail group.

In this operation, Calleja acquires a network of six hundred stores operating in Colombia, Uruguay, and Argentina, which are consolidated under well-known brands such as Éxito, Carulla, Surtimax, Devoto, Disco, Géant, and Libertad, among others. Several of these brands are currently undergoing a process of restructuring, which, although it represents a challenge, is also an opportunity for Calleja to apply its operating model to optimize the existing structure.

The move into the Colombian market was not, in this sense, a random decision: Colombia is one of the largest economies in Latin America, and the market is very competitive internally, with a consumer profile marked by a wide diversity in purchasing power and preferences.

The bet for the Grupo Calleja, therefore, not only represents a strengthening of its presence in the retail sector, but also an excellent opportunity to scale operations at an accelerated rate, diversifying income sources and leaving the Central American framework.

In addition, the move repositions the company as a benchmark for processes of internationalization coming from smaller countries. The size of the country of origin of a business group should no longer be seen as a limitation to its business ambition if that group has a long-term strategic vision and the operational capacity to adapt.

Central America, a new magnet for international investment

In addition to Central American companies expanding globally, the region itself is also becoming an increasingly attractive destination for foreign investment, especially in retail and related sectors.

Néstor Mejía Turcios, Vice President of Investment Banking at EY Parthenon, Central America and Panama, has stated that in recent years Panama and the Central American region have generated the interest of international players and investors not only for their privileged geographic location, but also for their economic dynamism and growth of the middle class.

In this sense, the investment that the Ecuadorian retail chain Corporación Favorita recently made in Panama’s Grupo Rey shows the interest of large South American chains to gain a foothold and extend their presence in Central American retail markets. Investments such as this reinforce the country’s position as a commercial bridge between northern and southern countries on the continent.

Turcios indicates that the regional expansion is also being accompanied by the growth of collateral sectors, such as delivery, which, although not strictly retail, has a direct impact on its development and evolution.

The boom of digital platforms and ecosystems

The booming development of e-commerce and delivery platforms is also producing important changes in the Central American retail landscape. In this sense, the 2021 sale of Salvadoran delivery platform “hugo” to the German company Delivery Hero for 150 million dollars, marked a before and after for the regional industry.

In addition to capturing the attention of national and international investors, the transaction demonstrated the existence of a great technological dynamism in Central America, which is also being marked by the boom of tech innovation and startup creation.

Turcios points out that many of these delivery apps have incorporated into their structures “digital stores” which compete directly with supermarkets, hypermarkets, and convenience stores, something which is forcing retailers to modify their operating models and advance in the digital transformation of their businesses.

At the same time, this movement is also generating the attention of venture capital, which has identified in regional startups and digital platforms an excellent opportunity for investment and takeovers.

This new digital ecosystem does not replace but complements the Central American retail model. However, in the medium term, it will redefine the rules of the game to such an extent that traditional companies now face a decision: to transform, collaborate or compete directly against these new players.

According to the EY expert, in the coming years, Central American retail will leave the stage of organic growth and enter a consolidation phase, of strategic alliances and mergers. The market leaders today will be able to absorb smaller competitors or be an acquisition target for larger international groups.

This new panorama will give rise, in the medium term, to a series of realignments in the commercial map of the region, where we will no longer speak of purely local actors fighting each other, but rather of an increasingly regional and international playing field, with new players, new rules and, above all, increasingly demanding consumers.

At stake, then, is not only sales leadership but also the ability to build integrated, omnichannel, user-centered consumer experiences. In this scenario, innovation, adaptability, and the projection of a long-term vision will be key in determining which companies will lead the next chapter of retail in Central America.

Central America, a Launchpad for Global Ambition

Central America is no longer only a region that attracts foreign investment; it is also becoming an incubator for companies with global ambitions. The international consolidation of groups such as Unicomer and Calleja signals a turning point in the business history of the isthmus and the opening of a new narrative for the Central American retail: that of a region that not only grows, but also exports successful business models.

In this new scenario, Central American retail ceases to be seen only as a product-based business and becomes a fertile ground for innovation, technology, and strategic alliances. The challenge now will be to continue maintaining this growth dynamic without losing sight of the consumer or the regional identity that differentiates these brands.

Between trade, investment, and strategic operations, the commercial relationship between China and Ecuador accounts for between 9% and 10% of the latter country’s GDP. Ecuador is seeking more investment, debt relief, and key agreements with its second-largest trading partner.

Amid global tensions and with a national economy in need of momentum, Ecuador has turned its attention to an increasingly decisive partner: China. This is no minor choice. The direct influence of the Asian giant on Ecuador’s economy already amounts to between 9% and 10% of the Gross Domestic Product (GDP). This scale makes the bilateral relationship a strategic matter, not just a commercial one. China-Ecuador economic relations are therefore central to the country’s broader development strategy.

During his first international trip of his new term, President Daniel Noboa visited China with a clear goal: to secure new investment flows, negotiate possible relief on existing debt, and reaffirm the importance of economic ties with Beijing. “The era of ideology is over,” Noboa declared at the World Economic Forum in Tianjin, making it clear that his administration prioritizes pragmatic alliances over political alignments.

Reality supports this strategy. China is not only Ecuador’s second-largest trading partner, behind the United States, but also its primary source of foreign direct investment (FDI), its top buyer of non-oil products such as shrimp, and a dominant player in strategic sectors like oil, mining, and the automotive industry. China-Ecuador economic relations are increasingly shaping Ecuador’s export dynamics and industrial development.

China: A Partner with Weight in Ecuador’s National Economy

According to data from the Superintendence of Companies and the Central Bank of Ecuador (BCE), China accounted for 50% of all FDI entering the country in 2024. On average, Ecuador’s FDI has ranged between $200 million and $800 million in recent years, meaning Chinese contributions hover around $300 million. This figure represents 0.24% of GDP. While this may seem modest in proportion, its impact is amplified by its concentration in key sectors like energy, mining, infrastructure, and automotive manufacturing.

Beyond direct investment, bilateral trade has reached historic levels. In 2024, trade between the two countries surpassed $10 billion (imports and exports combined), accounting for approximately 8% of Ecuador’s GDP. Although Ecuador maintains a trade deficit—importing more from China than it exports—the Chinese market has been vital for products like shrimp, with more than 50% of Ecuador’s shrimp exports destined for China. This trade dynamic underscores the growing relevance of China-Ecuador economic relations to Ecuador’s fiscal and trade health.

Oil, Mining, and Automobiles: China’s Muscle in Key Sectors

China’s footprint is not limited to capital flows. Its involvement in strategic sectors is pivotal. In oil, companies such as PetroOriental and Andes Petroleum (subsidiaries of CNPC, Sinopec, and CNOOC) control productive blocks in the Amazon region and have generated over $2 billion in cumulative investments. It is estimated that together they produce around 20% of Ecuador’s crude oil.

In mining, Ecuacorriente S.A. (ECSA) operates Mirador, the largest open-pit copper mine in Ecuador. Meanwhile, Explorcobres S.A. (EXSA) holds rights over the San Carlos-Panantza project. In recent months, Chinese companies have also acquired stakes in additional mining projects such as Cascabel and others across the country.

In the automotive sector, the Chinese brand BYD has expressed interest in assembling electric vehicles in Ecuador, promoting the country’s energy transition. Additionally, automakers such as Chery, JAC, Geely, and Dongfeng accounted for more than 45% of new car sales in Ecuador during the first half of 2025, according to the Ecuadorian Association of Automotive Companies (AEADE).

Although it is not possible to precisely quantify the value of these operations within GDP without net revenue data, it is estimated that economic activity generated by Chinese companies could exceed $2 billion, roughly 1.6% of GDP. These developments further illustrate how China-Ecuador economic relations extend beyond simple trade, influencing long-term industrial capability and innovation.

Ecuador and China: A Free Trade Agreement in Full Effect

The strengthening of this relationship was solidified with the signing of a Free Trade Agreement (FTA) with China on May 10, 2023, which was ratified by the National Assembly and has been in force since January 2024. This agreement eliminates tariffs on 90% of Ecuador’s exportable goods, benefiting sectors such as shrimp, bananas, coffee, cocoa, and timber.

Meanwhile, Ecuador remains the only Pacific coast country in the Americas without an FTA with the United States, despite the U.S. being its top destination for oil and agricultural exports. This has allowed China to gain ground as a structured commercial alternative, further deepening China-Ecuador economic relations through institutional frameworks.

Debt with China: The Financial Side of the Relationship

Between 2010 and 2017, China provided over $30 billion in loans to Ecuador through entities such as the China Development Bank. While Ecuador’s exposure to Chinese debt has declined in recent years, now accounting for less than 5% of external debt, the Noboa administration is seeking to refinance and reactivate credit lines as a way to reduce its reliance on the International Monetary Fund (IMF) and improve the country’s risk profile.

As previously reported by La Hora, Ecuador’s current debt to China exceeds $2.4 billion, with more than $1.6 billion due to mature by 2027. “Postponing these payments could provide fiscal space for the Noboa government to pay other debts and increase public investment,” noted economist Andrés Rodríguez.

More Trade and Investment with China—but with Transparency

The relationship with China has not been without controversy. The Coca Codo Sinclair megaproject, financed and built by Sinohydro, has suffered structural failures and is embroiled in legal disputes. Likewise, the ECU-911 video surveillance system, also of Chinese origin, has been criticized for technological vulnerabilities and privacy concerns, as noted by Sebastián Hurtado, president and founder of Prófitas.

Additional tensions include temporary suspensions of shrimp exports and the presence of Chinese fishing fleets near the Galápagos Islands, often seen as diplomatic pressure tactics.

Therefore, rather than resisting China’s presence, Hurtado emphasized, the challenge lies in channeling it with transparency, strategic vision, and sovereignty, demanding higher standards in contracts and diversifying partners in critical sectors. This will ensure that China-Ecuador economic relations evolve in a way that aligns with Ecuador’s long-term development goals.

Conclusion

The China-Ecuador economic relationship has become a cornerstone of Ecuador’s broader development strategy, touching nearly every key sector of the economy, from natural resources and manufacturing to trade and infrastructure. While the partnership offers immense opportunity, it also calls for improved regulatory frameworks, enhanced transparency, and a commitment to national interests. If managed prudently, China-Ecuador economic relations can help stabilize the economy, attract quality investment, and reduce fiscal vulnerabilities, all while expanding Ecuador’s global economic footprint.

Between trade, investment, and strategic operations, the commercial relationship between China and Ecuador accounts for between 9% and 10% of the latter country’s GDP. Ecuador is seeking more investment, debt relief, and key agreements with its second-largest trading partner.

Amid global tensions and with a national economy in need of momentum, Ecuador has turned its attention to an increasingly decisive partner: China. This is no minor choice. The direct influence of the Asian giant on Ecuador’s economy already amounts to between 9% and 10% of the Gross Domestic Product (GDP). This scale makes the bilateral relationship a strategic matter, not just a commercial one. China-Ecuador economic relations are therefore central to the country’s broader development strategy.

During his first international trip of his new term, President Daniel Noboa visited China with a clear goal: to secure new investment flows, negotiate possible relief on existing debt, and reaffirm the importance of economic ties with Beijing. “The era of ideology is over,” Noboa declared at the World Economic Forum in Tianjin, making it clear that his administration prioritizes pragmatic alliances over political alignments.

Reality supports this strategy. China is not only Ecuador’s second-largest trading partner, behind the United States, but also its primary source of foreign direct investment (FDI), its top buyer of non-oil products such as shrimp, and a dominant player in strategic sectors like oil, mining, and the automotive industry. China-Ecuador economic relations are increasingly shaping Ecuador’s export dynamics and industrial development.

China: A Partner with Weight in Ecuador’s National Economy

According to data from the Superintendence of Companies and the Central Bank of Ecuador (BCE), China accounted for 50% of all FDI entering the country in 2024. On average, Ecuador’s FDI has ranged between $200 million and $800 million in recent years, meaning Chinese contributions hover around $300 million. This figure represents 0.24% of GDP. While this may seem modest in proportion, its impact is amplified by its concentration in key sectors like energy, mining, infrastructure, and automotive manufacturing.

Beyond direct investment, bilateral trade has reached historic levels. In 2024, trade between the two countries surpassed $10 billion (imports and exports combined), accounting for approximately 8% of Ecuador’s GDP. Although Ecuador maintains a trade deficit—importing more from China than it exports—the Chinese market has been vital for products like shrimp, with more than 50% of Ecuador’s shrimp exports destined for China. This trade dynamic underscores the growing relevance of China-Ecuador economic relations to Ecuador’s fiscal and trade health.

Oil, Mining, and Automobiles: China’s Muscle in Key Sectors

China’s footprint is not limited to capital flows. Its involvement in strategic sectors is pivotal. In oil, companies such as PetroOriental and Andes Petroleum (subsidiaries of CNPC, Sinopec, and CNOOC) control productive blocks in the Amazon region and have generated over $2 billion in cumulative investments. It is estimated that together they produce around 20% of Ecuador’s crude oil.

In mining, Ecuacorriente S.A. (ECSA) operates Mirador, the largest open-pit copper mine in Ecuador. Meanwhile, Explorcobres S.A. (EXSA) holds rights over the San Carlos-Panantza project. In recent months, Chinese companies have also acquired stakes in additional mining projects such as Cascabel and others across the country.

In the automotive sector, the Chinese brand BYD has expressed interest in assembling electric vehicles in Ecuador, promoting the country’s energy transition. Additionally, automakers such as Chery, JAC, Geely, and Dongfeng accounted for more than 45% of new car sales in Ecuador during the first half of 2025, according to the Ecuadorian Association of Automotive Companies (AEADE).

Although it is not possible to precisely quantify the value of these operations within GDP without net revenue data, it is estimated that economic activity generated by Chinese companies could exceed $2 billion, roughly 1.6% of GDP. These developments further illustrate how China-Ecuador economic relations extend beyond simple trade, influencing long-term industrial capability and innovation.

Ecuador and China: A Free Trade Agreement in Full Effect

The strengthening of this relationship was solidified with the signing of a Free Trade Agreement (FTA) with China on May 10, 2023, which was ratified by the National Assembly and has been in force since January 2024. This agreement eliminates tariffs on 90% of Ecuador’s exportable goods, benefiting sectors such as shrimp, bananas, coffee, cocoa, and timber.

Meanwhile, Ecuador remains the only Pacific coast country in the Americas without an FTA with the United States, despite the U.S. being its top destination for oil and agricultural exports. This has allowed China to gain ground as a structured commercial alternative, further deepening China-Ecuador economic relations through institutional frameworks.

Debt with China: The Financial Side of the Relationship

Between 2010 and 2017, China provided over $30 billion in loans to Ecuador through entities such as the China Development Bank. While Ecuador’s exposure to Chinese debt has declined in recent years, now accounting for less than 5% of external debt, the Noboa administration is seeking to refinance and reactivate credit lines as a way to reduce its reliance on the International Monetary Fund (IMF) and improve the country’s risk profile.

As previously reported by La Hora, Ecuador’s current debt to China exceeds $2.4 billion, with more than $1.6 billion due to mature by 2027. “Postponing these payments could provide fiscal space for the Noboa government to pay other debts and increase public investment,” noted economist Andrés Rodríguez.

More Trade and Investment with China—but with Transparency

The relationship with China has not been without controversy. The Coca Codo Sinclair megaproject, financed and built by Sinohydro, has suffered structural failures and is embroiled in legal disputes. Likewise, the ECU-911 video surveillance system, also of Chinese origin, has been criticized for technological vulnerabilities and privacy concerns, as noted by Sebastián Hurtado, president and founder of Prófitas.

Additional tensions include temporary suspensions of shrimp exports and the presence of Chinese fishing fleets near the Galápagos Islands, often seen as diplomatic pressure tactics.

Therefore, rather than resisting China’s presence, Hurtado emphasized, the challenge lies in channeling it with transparency, strategic vision, and sovereignty, demanding higher standards in contracts and diversifying partners in critical sectors. This will ensure that China-Ecuador economic relations evolve in a way that aligns with Ecuador’s long-term development goals.

Conclusion

The China-Ecuador economic relationship has become a cornerstone of Ecuador’s broader development strategy, touching nearly every key sector of the economy, from natural resources and manufacturing to trade and infrastructure. While the partnership offers immense opportunity, it also calls for improved regulatory frameworks, enhanced transparency, and a commitment to national interests. If managed prudently, China-Ecuador economic relations can help stabilize the economy, attract quality investment, and reduce fiscal vulnerabilities, all while expanding Ecuador’s global economic footprint.

Paraguay has emerged as a compelling destination for nearshore manufacturing, offering a blend of competitive operating costs, strategic access to regional markets, and favorable investment conditions. For site selection consultants and companies evaluating expansion or relocation in Latin America, the country’s most prominent industrial parks offer scalable infrastructure, labor force availability, and logistical advantages well-suited for international manufacturing operations. This overview explores the leading industrial parks in Paraguay and provides detailed insights into their business environment, infrastructure, and cost competitiveness.

Among the most well-established industrial parks in Paraguay are Zona Franca Global, Parque Industrial Oriente, Parque Industrial Pilar, Zona Franca Trans Trade, and Parque Industrial de Hernandarias. These parks are located in strategic regions such as Asunción, Ciudad del Este, Hernandarias, and Pilar, close to major transportation routes, borders with Brazil and Argentina, and waterways like the Paraguay and Paraná Rivers. Their geographic positioning facilitates cost-efficient shipping to Mercosur countries and access to major global shipping ports in Buenos Aires and Montevideo.

Access to Markets, Labor Pools, and Suppliers

One of the most attractive features of industrial parks in Paraguay is their proximity to Brazil and Argentina, two of the largest economies in South America. Companies operating within Paraguay’s maquila system can export goods to these markets with preferential tariffs. The Mercosur trade bloc ensures reduced barriers for regional trade, while Paraguay’s free trade agreements with several nations outside the bloc allow for diversified market access.

Industrial parks are often located near metropolitan areas, providing access to skilled and semi-skilled labor pools. The city of Asunción, for example, draws workers from its surrounding districts and offers strong connectivity to industrial zones like the Zona Franca Global. Ciudad del Este and Hernandarias also provide a workforce familiar with cross-border commerce and logistics due to their proximity to Brazil’s state of Paraná.

Suppliers are increasingly located within or near these parks, creating opportunities for vertical integration and lowering the cost of inputs. Electronics, textiles, auto parts, plastics, and food processing firms make up the majority of the current tenant base in these industrial zones, contributing to emerging cluster benefits.

Transportation, Utilities, and Energy Infrastructure

The quality of infrastructure in Paraguay’s leading industrial parks supports efficient operations for international manufacturers. Most parks offer paved internal roadways, 24/7 security, on-site customs services, and direct highway access. The country’s ongoing investments in road infrastructure, such as the Bioceanic Corridor and Ruta PY01 and PY02 upgrades, improve transit times to export points. Additionally, river ports like Villeta and Pilar, as well as overland connections to the Brazilian port of Paranaguá, serve as critical trade arteries.

Electricity in Paraguay is both abundant and cost-effective, thanks to the Itaipú and Yacyretá hydroelectric dams. Industrial users benefit from some of the lowest electricity rates in Latin America, typically between $0.03 and $0.05 per kilowatt-hour—with reliable supply. Telecommunications infrastructure has expanded significantly in recent years, with fiber-optic connectivity and mobile broadband widely available across industrial zones.

Water and wastewater services are generally provided on-site or via nearby municipal systems, although some industrial parks—particularly Parque Industrial Oriente—have developed their own water treatment facilities to meet environmental standards.

Labor Availability, Costs, and Training Programs

Paraguay boasts a young and growing workforce, with a median age of just twenty-nine. Wages remain among the lowest in the region, with average monthly salaries in manufacturing ranging from $350 to $550, depending on skill level and location. Labor laws are favorable for investors, offering flexibility in terms of contract types, probation periods, and work schedules.

Union activity in Paraguay is relatively moderate compared to neighboring countries, and most foreign manufacturers report cooperative labor relations. The government encourages worker-employer dialogue while maintaining a pro-investment stance.

Technical training institutions, including the Servicio Nacional de Promoción Profesional (SNPP) and private-sector initiatives, provide workforce development programs tailored to industrial skills. Some industrial parks collaborate directly with vocational schools to offer in-house training for new tenants.

Tax Incentives, Regulatory Environment, and Ease of Doing Business

The Maquila Law (Law 1064/97) remains the cornerstone of Paraguay’s investment appeal. It offers a 1% tax on the value-added portion of goods produced for export, duty-free imports of capital goods and raw materials, and simplified customs procedures. Additionally, businesses operating in Free Trade Zones like Zona Franca Trans Trade or Zona Franca Global benefit from full exemptions on income tax, VAT, and import/export duties for eligible operations.

Paraguay ranks favorably in regulatory efficiency among Latin American peers. Company formation can be completed in under 30 days, and ongoing compliance requirements are relatively light. Environmental regulations are enforced, but not overly restrictive. Industrial parks often offer permitting assistance and help tenants meet regulatory obligations, including environmental impact studies, when required.

Real Estate, Construction, and Operating Costs

Real estate costs are a key competitive advantage in industrial parks in Paraguay. Average lease rates for industrial buildings range from $3.50 to $5.00 per square meter per month, depending on location, amenities, and park services. Build-to-suit options are available in most parks, with construction costs averaging $400 to $600 per square meter—substantially lower than in Mexico or Brazil.

Operating costs such as waste management, facility maintenance, and security services are generally included in park service packages, which cost between $0.50 and $1.00 per square meter per month. Utility expenses remain affordable, with monthly electricity bills for medium-sized manufacturers often below $10,000, even with continuous production.

Logistics and Freight Costs

Paraguay’s logistics ecosystem supports competitive freight rates, especially for companies shipping to regional markets. Truck transport to ports in Buenos Aires or Paranaguá costs between $1,800 and $2,500 per container, depending on origin point and fuel surcharges. Inland waterway transport is also a cost-effective option; container barge services along the Paraguay and Paraná Rivers allow for bulk shipments at roughly 25–30% lower rates than road freight.

Paraguay’s strategic inland location allows manufacturers to distribute goods efficiently throughout southern South America. Exporters targeting Brazil’s industrial heartland or northern Argentina can reach key markets in under 48 hours by truck.

Tenant Mix and Cluster Development

The tenant mix in industrial parks in Paraguay is becoming more diverse and sophisticated. Textile producers, automotive suppliers, agri-industrial processors, and electronics assemblers make up the majority of current occupants. For instance, Parque Industrial Oriente hosts automotive component manufacturers, while Zona Franca Global has attracted technology firms and logistics companies.

This diversity supports the formation of industry clusters, offering companies access to shared labor pools, knowledge spillovers, and input suppliers. For example, electronics companies located in Ciudad del Este benefit from a regional ecosystem of distributors, warehousing services, and component importers. These cluster effects can help reduce production lead times and enhance responsiveness to market changes.

Moreover, the record of industrial parks in Paraguay in supporting global companies continues to grow. Firms from Taiwan, South Korea, Brazil, and the United States have established operations under the maquila regime. These companies report high satisfaction with the regulatory support, low costs, and responsiveness of industrial park management.

Conclusion

For site selection consultants and manufacturing companies seeking a nearshore alternative that combines cost-efficiency, strategic location, and regulatory simplicity, industrial parks in Paraguay provide a compelling option. With access to regional markets through preferential trade agreements, a competitive tax environment, and affordable infrastructure, Paraguay is well-positioned to support both labor-intensive and value-added manufacturing.

Companies can take advantage of low lease rates, low labor costs, reliable energy, and cluster benefits in established parks such as Zona Franca Global, Parque Industrial Oriente, and Parque Industrial Pilar. As infrastructure and logistics capabilities continue to expand, industrial parks in Paraguay are increasingly being recognized as prime hubs for nearshore production in Latin America.

With an adaptable regulatory framework, training institutions aligned with industrial needs, and a growing history of successful foreign investment, industrial parks in Paraguay offer site selectors the critical variables needed for long-term manufacturing success.