# Paraguay Neighbours Explained

> Paraguay's landlocked economy relies on cross-border trade with Argentina, Brazil and Bolivia.
- Title: Paraguay Neighbours Explained · The Rio Times | Shortify
- Summary: Paraguay's landlocked economy relies on cross-border trade with Argentina, Brazil and Bolivia. Paraguay depends on neighbors for river access, electricity…
- Keywords: paraguay, argentina, brazil, bolivia, mercosur, itaipu, reexports, paraguay river, paraná river, trade surplus, bioceanic corridor, misiones
- Source: The Rio Times — https://riotimesonline.com/paraguay-in-southern-cone-explained-2026
- Author: Gabriela Vargas
- Published: 2026-10-03T04:34:51+00:00
- Read time: 2 min
- Topics: paraguay, argentina, brazil, bolivia, mercosur, itaipu, reexports, paraguay river, paraná river, trade surplus, bioceanic corridor, misiones
## 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.
## Key takeaway

Paraguay depends on neighbors for river access, electricity and trade as a landlocked country.