Since the early 2000s, Paraguay has presented a set of economic conditions that make the country an extremely competitive industrial platform for Brazil, the largest consumer market in LATAM. Just as Mexico is to the USA.

However, it was only after the pandemic that Brazilian industries and retailers began to see Paraguay as a nearshoring solution to reduce their dependence on Asia.

For Brazil’s largest fashion retailers, Paraguay is the fastest-growing clothing supply source, representing a much-needed third option, as opposed to fast but expensive Brazil and cheap but distant Asia. In Paraguay, fashion retailers can have the best of both worlds: costs as competitive as Asian clothing, with delivery times comparable to Brazilian suppliers. The next step, to fully realize Paraguay’s supply potential, is to develop a greater part of the supply chain in the country.