Taiwan grants preferential tariffs to 19 Paraguayan products

Taipei, July 5 (CNA) Taiwan began offering preferential tariff treatment on 19 products imported from Paraguay on Saturday, under a resolution signed last year as part of the Economic Cooperation Agreement (ECA) between the two countries, the Ministry of Economic Affairs (MOEA) announced.

Resolution No. 8 of the ECA, signed in August 2024, allows for zero tariffs on 17 Paraguayan goods, including frozen boneless pork, preserved chopped beef offal, wheat powder, industrial-use alcohol and textiles, according to the MOEA.

Additionally, tariffs on Paraguay-made rice crackers were reduced to 10 percent, while natural honey will see a gradual tariff reduction to 20 percent over the next three years.

The MOEA noted that from 2017 to date, Taiwan has imported a total of US$45.44 million worth of these 19 goods, with frozen boneless pork being the leading import.

The ECA between Taiwan and Paraguay officially took effect on Feb. 28, 2018, and has since led to several productive joint meetings, according to the ministry. To implement the terms of Resolution No. 8, the Executive Yuan approved an amendment in November 2024 to Taiwan's customs import tariff regulations, as proposed by the Ministry of Finance.

Paraguay is one of Taiwan's key diplomatic allies in South America and has consistently voiced support for Taiwan's participation in international affairs, the MOEA said. The South American country is also recognized for its stable economy and growing competitiveness in the global livestock market, with ongoing efforts to modernize industries and attract investment.

The ministry emphasized that the new preferential tariff status will enhance bilateral trade, particularly as Paraguay specializes in agricultural exports. The agreement is expected to create new economic and business opportunities for both nations.

Since the ECA came into force in 2018, bilateral trade between Taiwan and Paraguay has grown by 300 percent as of 2024. Paraguayan frozen beef has become a significant source of beef for Taiwan, while Taiwanese exports of hand tools, plastic products, and auto parts to Paraguay have increased by 27 percent, signaling increasingly strong economic ties.