Garment industry growth and the Brazilian market

The expansion of the garment sector in Paraguay

The garment sector in Paraguay has shown significant growth in recent years, driven primarily by exports to the Brazilian market and the maquila regime. According to data published by the newspaper ABC Color, the sector's external sales rose from USD 177 million in 2018 to USD 323 million in 2025, registering a cumulative increase of over 82%.

Attractiveness factors for investors

According to the Industrial Association of Garment Manufacturers of Paraguay (AICP), the sector's expansion relies on the country's structural competitive advantages. Among the main attractions highlighted by industry representatives are:

• A single 1% tax on added value established by the maquila law.
• Access to clean electricity at competitive costs.
• Young labor force and lower operating costs than neighboring countries such as Brazil and Argentina.
• Preferential access to Mercosur markets.

Impact on the economy and employment

The productive model combines small and medium-sized domestic enterprises with large foreign-capital companies, predominantly Brazilian. The maquila regime in the textile and garment sector accounted for between 17% and 18% of the total exported under this scheme in 2025, a year in which the Ministry of Industry and Commerce recorded external sales exceeding USD 1.3 billion for the regime as a whole. The activity employs thousands of formal workers in local communities, consolidating itself as one of the country's productive and export pillars.

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