South American economic and developmental cooperation

Developmental and economic cooperation in South America is being facilitated through multilateral organizations and bilateral agreements.

In Paraguay, the Inter-American Development Bank (IDB) reported progress in agribusiness and digital governance, noting that grain export values rose from USD 151 million in 2017 to USD 308 million in 2021. The IDB also provided USD 20 million in funding to Uruguay to support export promotion and technological innovation through the Uruguay XXI program.

Efforts to strengthen regional ties have expanded to include Peru. The IDB and CAF have reaffirmed their commitment to supporting Peruvian economic development through 2031. This cooperation focuses on infrastructure in transport, tourism, and natural gas, as well as climate emergency mitigation, specifically regarding El Niño. Concurrently, the OECD has recommended that Peru revise tax benefits for large agro-exporters, suggesting they return to the standard 29.5% income tax rate.

Paraguay and Peru continue to pursue deeper bilateral cooperation in agricultural production, technical training, and the development of the Bioceanic logistics route to enhance connectivity and boost trade and investment.