This paper examines Paraguay’s vulnerability to the European Union’s Regulation on Deforestation-Free Products (EUDR). Drawing on trade data, customs firm-level data, and high-resolution geospatial analysis, it assesses exposure at the country, firm, and geographic levels. The results show that Paraguay’s direct export exposure to the EUDR is modest, but indirect exposure through Argentina’s soy value chain could affect up to 13 percent of its exports. Firm-level evidence indicates that soy and rubber exports are concentrated among a few large firms, whereas the emerging wood and forestry sector is fragmented across small and medium-sized enterprises with limited capacity to absorb compliance costs. Geospatial analysis suggests that only 0.4%–2% of soybean areas may be at risk of non-compliance, concentrated in Itapúa, San Pedro, and Alto Paraná. Overall, Paraguay’s vulnerability stems primarily from indirect value-chain linkages, underscoring the need for targeted support and regional coordination within MERCOSUR to strengthen environmental governance.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Runtime: 4 hours
To reproduce the findings in this study, please follow the steps below:
README file for detailed instructions on data access.00-main-Figs17_Table1.doReproducibility_Package.Rproj and run the following scripts in order:00-main-Fig8_Tables45.r5_calculate_GLAD_soybean_Paraguay_2001_2023.r6_calculate_INFONA_soybean_Paraguay_2022.r7_calculate_MapBiomas_forest_Paraguay_2020.r8_calculate_JRC_forest_Paraguay_2020.r/Results and /Graphs folders./Results folder contains outputs produced by the authors. These files can be used to review and verify the results presented in the paper.| Author | Affiliation | |
|---|---|---|
| José-Daniel Reyes | World Bank | danielreyes@worldbank.org |
| Mariana Conte Grand | World Bank | mcontegrand@worldbank.org |
| Pui Shen Yoong | World Bank | psyoong@worldbank.org |
| Nicolás Borchers Arriagada | University of Tasmania | nicolas.borchers@gmail.com |
| Luis Diego Rojas Alvarado | World Bank | lrojasalvarado@worldbank.org |
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| Location | Code |
|---|---|
| Paraguay | PRY |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| José-Daniel Reyes | World Bank | danielreyes@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
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