India, Paraguay hold first meeting of Joint Commission Mechanism

• The first meeting of the India-Paraguay Joint Commission Mechanism (JCM) was held in the city of Asuncion on November 14.

• Both sides agreed on the importance of strengthening cooperation in mutually beneficial areas, promoting trade, encouraging investment, and consolidating the multi-faceted partnership in sectors of mutual interest, as well as advancing the negotiation of bilateral instruments. 

• The delegations agreed on the importance of deepening high-level political dialogue, promoting the exchange of official visits and regular consultations, following up on priority areas, evaluating new initiatives, and facilitating the implementation of existing instruments. 

• They also highlighted the potential for growth in bilateral trade and investment in key areas including renewable energy, agribusiness, pharmaceuticals, ICT, biofuels, and light manufacturing.

• The Joint Commission emphasized the importance of strengthening ties between India and MERCOSUR as a means to expand trade and investment opportunities.

India-Paraguay Relations

• India and Paraguay established diplomatic relations on September 13, 1961, cultivating warm and friendly ties between the two nations.

• Both countries have since developed cooperation in various sectors, including trade, agriculture, health, pharmaceuticals and information technology.

• Paraguay is an important trading partner for India in the Latin American region. Several Indian companies in the automobile and pharmaceutical sectors have their presence in Paraguay.

• Paraguay opened its embassy in India in March 2006. The embassy of India in Asuncion started its operations on January 27, 2022. 

• For the financial year 2024-25, the bilateral trade stood at $168.01 million.

• India’s exports to Paraguay were valued at $142.99 million, while Paraguay’s exports to India reached $25.02 million. 

• The main export items of Paraguay to India are soya oil and related products, iron and steel, aluminium, and animal products. 

• Main export items from India to Paraguay include motor vehicles, agrochemicals, auto parts and pharmaceutical products.

• Paraguay is a member of MERCOSUR. An India-MERCOSUR Preferential Trade Agreement (PTA) was concluded on January 25, 2004 and became operational in June 2009. Preferential duty is given to certain Indian products entering MERCOSUR countries and vice versa.