From The Rio Times · Gabriela Vargas · · 2m
Paraguay Neighbours Explained
Paraguay's landlocked economy relies on cross-border trade with Argentina, Brazil and Bolivia.
In brief
Paraguay's landlocked economy relies on cross-border trade with Argentina, Brazil and Bolivia. Paraguay depends on neighbors for river access, electricity and trade as a landlocked country. Originally reported by The Rio Times.
Paraguay's key neighbours
Paraguay shares borders with Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the north and northwest.
Why Paraguay matters
Paraguay depends on neighbors for river access to the Atlantic, electricity exports and most of its foreign trade.
Key trade figures
In the first half of 2026, Argentina took 42.3% of Paraguayan exports worth US$2.7708 billion.
Re-exports matter
Re-exports linked to border commerce made up 27.4% of total exports in 2.025.
Brazil: the heavyweight partner
Brazil is Paraguay's most consequential neighbour with major crossings at Ciudad del Este, Foz do Iguaçu and Pedro Juan Caballero, Ponta Porã.
Itaipú hydroelectric facility
Paraguay and Brazil jointly own Itaipú Binacional, one of the world's largest hydroelectric facilities.
Argentina: river and ports
Argentina is Paraguay's principal outlet to the Atlantic through the Paraguay, Paraná waterway.
Bolivia: strategic northern frontier
Bolivia provides the northern end of a potential connection between Paraguay's river system and Pacific-facing markets.
Trade in 2025
Paraguay's total exports reached US$16.7203 billion, up 5.8% from 2024 with a US$1.3907 billion trade deficit.
First half 2026 trade
Paraguay recorded a US$746.6 million trade surplus with exports rising 23.6% to US$10.1628 billion.
Shared rivers
The Paraguay and Paraná rivers are the country's principal external infrastructure for river transport and trade.
Bridges and corridors
The Puente de la Integración bridge reduces pressure on Friendship Bridge for freight traffic.
Bioceanic corridor
The Bioceanic Corridor aims to connect Brazil's Atlantic zones with northern Chilean ports through Paraguay and Argentina.
Energy dependence
Paraguay's hydroelectric capacity depends on bilateral agreements with Brazil and Argentina for electricity value.
MERCOSUR framework
MERCOSUR gives Paraguay preferential access to major neighbouring markets and trade negotiation platforms.
What this means for foreigners
A company exporting from Paraguay moves goods through Argentine river ports or Brazilian bridges.
The short version
Paraguay depends on neighbors for river access, electricity and trade as a landlocked country.
