[INTERVIEW] Paraguay seeks extra Korean investments through TIPF: Paraguayan commerce minister

‘Korea serves as a mannequin for financial growth’

By Kim Hyun-bin

Paraguayan Minister of Trade and Commerce Javier Giménez García de Zuniga mentioned the signing of the Commerce and Funding Promotion Framework (TIPF) with Korea on Friday will turn into the spine of strengthened cooperation in manufacturing, vitality and commerce. He famous that the first objective of his go to to Seoul was to signal the TIPF.

“The framework is designed to deepen our cooperation with Korea, significantly in manufacturing and commerce,” he mentioned Friday in an interview with The Korea Instances on the Embassy of Paraguay in Seoul.

The settlement is predicted to draw further Korean firms to Paraguay, leveraging the nation’s strategic location in South America.

“Paraguay’s central location permits for environment friendly distribution to neighboring markets. We’ve a younger inhabitants, plentiful clear vitality and key infrastructure that positions us as a logistical hub for South America,” Giménez García mentioned.

Trying forward, the minister mentioned that after the signing of the framework, the subsequent steps contain inviting Korean buyers to Paraguay.

“We’re extending an invite to the Korean minister of commerce, trade and vitality to attend our vitality week in October. We additionally plan to work intently with the Paraguayan Embassy in Korea to advertise our nation’s funding alternatives,” he mentioned.

Korea and Paraguay haven’t signed a free commerce settlement. However Korea exports roughly $20 million value of products to Paraguay every year, together with cars and electronics. Giménez García expressed a want to extend this commerce quantity.

“We wish to interact with main Korean conglomerates like Hyundai and Kia to extend commerce and investments,” he mentioned.

To draw Korean buyers, Paraguay gives a number of incentives, together with a low company tax price of 10 % and varied legal guidelines designed to assist industrial development.

“Our tax incentives and particular legal guidelines make Paraguay a horny vacation spot for investments,” Giménez García mentioned. “We’re dedicated to sustaining a aggressive enterprise setting to foster financial development.”

The minister acknowledged that whereas Paraguay has a robust commerce relationship with Korea, there are challenges. One vital barrier is the excessive tariff on Paraguayan meat exports to Korea.

“We’re working to cut back these tariffs and are awaiting the Korean authorities to conduct inspections to certify our slaughterhouses,” he mentioned. “Our beef and pork are of top of the range, and we consider they’ll compete nicely within the Korean market.”

Itaipu Binacional, an enormous hydroelectric dam on the Paraná River between Brazil and Paraguay. Courtesy of Embassy of Paraguay in Seoul

Financial mannequin

Addressing the present state of financial relations, Giménez García described them as steady with substantial potential for development.

“Korea serves as a mannequin for financial growth, and we see many classes to study from their success,” he mentioned. “Paraguay goals to emulate Korea’s method to schooling and financial growth to advance our personal economic system.”

The minister additionally emphasised the numerous strides Korea has revamped the previous 75 years, underscoring the stark distinction between the financial trajectories of Korea and Paraguay since 1950.

“Within the yr 1950, Korea and Paraguay had been on the identical degree of GDP,” he mentioned. “Someway, in these seventy-five years, Korea has grown to be one of many high economies on this planet with round a $1.7 trillion economic system. In the meantime, Paraguay has remained largely an exporter of agricultural merchandise, just like Korea’s standing in 1950.”

The minister requested, “What occurred? Why did Korea develop like this and Paraguay stayed roughly on the identical degree of financial growth?”

Giménez García pointed to a number of key elements that contributed to Korea’s success, notably its investments in schooling.

“Quite a lot of issues occurred, plenty of issues Korea did appropriately that we have to copy, that we have to imitate,” he mentioned. “Good examples have to be imitated, have to be copied. And this is the reason we’re right here — to study from Korea’s expertise.”

He highlighted Korea’s strategic give attention to schooling as an important aspect of its financial transformation.

“The principle step that Korea took over these 75 years was particularly the entire issues associated to schooling,” Giménez García mentioned. “Korea invested so much within the schooling of its folks, and this is the reason now now we have the very best quality manufactured gadgets coming from Korea, not solely in automobiles but additionally in know-how, the transport trade and plenty of different sectors.”