1. Paraguay

2. GENERAL INFORMATION

3. Area (km2)406.752 Oficial LanguagesSpanish and Guarani CurrencyGuaraní (Gs.) Population6.672.631 (2012) GDP in US MillionsUS$ 25,5 mil millions CapitalAsunción Other important cities Ciudad del Este, Encarnación y Concepción Employement Force3.412.443 Population growth1,69 % Unemployement4,9% of EF Inflation4 % GENERAL INFORMATION

4. Paraguay, located in the heart of South America. Is the most financially stable country in the region, with lower inflation rates and lower devaluation of its currency. International Reserves (JUN 2013) US$ 5.758 milons External Public Debt (JUN 2013) US$ 2.623 milons

5. A great freshwater reservoir Paraguay is located in the center of the 5th. largest freshwater reservoir: The Guarani Basin. Paraguay river Paraná river Pilcomayo river Average Temperature: 24° C /75º F Annual rain average: 1.200 mm.

6. REGIONAL LOGISTICS

8. The Paraguay-Paraná waterway, connects five countries with the Atlantic Ocean, over a distance of 3442 km. Between 1988 and 2012, the transportation of goods grew from 700 thousand to over 20 million tons a year. Paraguay's main ports are: Asuncion, Villeta, San Antonio and Encarnación. From a total of 1752 barges that have permits to navigate the waterway, 1355 do it so under Paraguayan flag. This potential led to international companies to invest in the shipbuilding sector in Paraguay. An example is the TSUNEISHI PARAGUAY SA, which plans to build the largest barge shipyard in Latin America. WATERWAY

9. ENERGY

10. MWh200020052010201520202025 Production7410 84109002915210592 Surplus629060566578662160546563 Demand112013541832238130984029 Hidroelectric Power Clean and Sustainable ITAIPU DAM NOMINAL INSTALLED CAPACITY:140.000 MW NUMBER OF TURBINES:20 (10 PY/10 BR) INSTALLED CAPACITY:675.000 GWh/YEAR ACARAY DAM NOMINAL INSTALLED CAPACITY: 252 MW GENERATION: 950 GWh/YEAR YACYRETA DAM NOMINAL INSTALLED CAPACITY:31000 MW NUMBER OF TURBINES:20 (10 PY/10 AR) INSTALLED CAPACITY:210.000 GWh/AÑO

11. COMMERCE

12. Competitive Advantages to Export Starting in 2014, Paraguay will be the only country in MERCOSUR with preferential access to the European Union. Tariff liberalization for 9,749 products Potential for integration as manufacturer and exporter of Paraguayan goods. Direct access to a market of 500 million people. Products General tariff Tariff for Paraguay Origin requirements Vinegar Gherkin17,6%0%Manufactured in Paraguay (local or imported inputs) Crude Soybean Oil6,4%0%Elaborated in Paraguay(soja importada o local) Canned Palm Hearts10,0%0%Processed in Paraguay (local or imported inputs) Plywood7,0%0% Manufactured in Paraguay (local or imported laminated) Blouses for ladies12,0%0% Confection, with fabrics imported with a value of max. 40 % Steel Pipes3,7%0%With imported foreign values of max. 35% Some examples

13. According to official estimates by the International Monetary Fund (IMF), Paraguayan growth projection for 2013, is of 13%. Unofficial figures suggests that this index could climb to even 14%. The IMF estimates that Paraguayan GDP for 2014 will grow of 4.6% Paraguay is thus located at third place among countries with the largest projected growth. GDP % variation Country20122013 Mongolia12,715,7 Iraq10,214,7 Paraguay-1,513 China7,88,2 India4,55,9 Brasil1,03,5 Mexico3,83,5 Sudáfrica2,32,8 Estados Unidos2,32,0 Canadá2,01,8 Japón2,01,2 Alemania0,90,6 Agriculture 22,3 % Industry 18,1 % Services 59,6 % GDP COMPOSITION

14. YEAR 2012 ExportsImports MERCOSUR1.223.610.8634.371.786.825 PACIFIC ALIANCE535.960.201320.093.231 EU1.186.922.481692.089.833 REST OF THE WORLD2.025.833.1475.305.627.894 TOTAL 4.972.326.692 10.689.597.783 YEAR 2013* ExportsImports MERCOSUR 676.440.477 978.709.122 PACIFIC ALIANCE 385.602.918 825.916 EU 941.004.557 58.075.130 REST OF THE WORLD 1.400.310.481 4.544.468.409 TOTAL 3.403.358.433 5.582.078.577 * Jan-Jun 13

15. BUSSINESS CLIMATE

16. COUNTRYRANKING Paraguay77 Brazil113 Argentina138 Bolivia147 Ecuador158 Venezuela175 Economic Freedom Index – The Heritage Foundation Economic Freedom

17. Taxes TAX PARAGUAY ARGENTINA URUGUAY BRAZILCHILE Corporate Income Tax (*)≤10%35%25%34%17% Personal Income Tax10%35%25%27,5%40% Value Added Tax (VAT)≤10%21%23%25%19% Paraguay offers the Most Competitive Tax Structure in the Region *Obs: if incomes are remitted internationally it may be up to 27.5%

18. Production Incentives Convention on the Settlement of Investment Disputes between States (CIADI )

19. Rules of Origin - MERCOSUR Paraguay enjoys special treatment in terms of rules of origin for products manufactured until 2022. It is easier to acquire origin in Paraguay than in Mercosur. Necessary regional content in %(MERCOSUR)

20. INVESTMENT OPPORTUNITIES

21. T he potential of the mining and hydrocarbons industry in Paraguay has recently taken great visibility in the region. This activity is regulated in the Act: 3.180/2007. The following areas have been explored: North (Apa River): Total area 600,000 hectares (approx.) Geochemical studies detected the presence of the following minerals: copper, lead, zinc, gold, silver, cobalt, nickel, chromium, iron, among others. South (Tebicuary River): Total area 300,000 hectares (approx.) Geochemical studies detected the presence of the following minerals: lead, zinc, gold, cobalt, nickel, chromium, iron, uranium, among others. MINING

22. INFRASTRUCTURE Road Infrastructure Total road infrastructure of Paraguay: 32.234 km Total paved roads: 8,924 km (27.7% approx.) Main Projects: Improvement of National Roads 1,2,6 and 7 Second bridge between Paraguay and Brazil over the Parana River Improvement of the Bioceanic Corridor - Capricorn Hub Revitalization of railways Asuncion-Encarnacion

23. POTENCIAL SECTORS Meat and Leather Tourism Biofuels Forest Products Cotton, Textile & Apparel Information Technology Energy Call Center Metallurgic Fruits and Vegetables Stevia Oils

24. 1st. exporter of Electricity in the world. 1st. exporter of Organic Sugar in the world. 2nd. largest producer and exporter of Stevia in the world. 2nd. largest producer of Tung in the world. 4th. largest exporter of Soybean in the world. 4th. largest exporter of vegetal charcoal. 4th. largest exporter of starch of yuca. 4th. largest exporter of Soybean Oil in the world. 6th. largest producer of Soybean in the world. 8th. largest exporter of meat in the world.* * Foreign Agricultural Service/USDA – Office of Global Analysis SOME ADDITIONAL FACTS

25. Why invest (& live) in Paraguay? 6. Quick return on investment. 7. It is among the world's top exporters of soybeans and beef, with high productivity and expansion capacity. 8. Good levels of quality of life and safety. 1.Plenty of natural resources 2.Abundant electrical energy, environmentally clean and renewable. 3.Mainly young population. 4.Stable macroeconomy. Fiscal policy with the lowest tax burden in the region. 5.Benefits for foreign and domestic investment.

26. ¨A World Class food producer, open and connected to the world, with high rates of development, rule of law and public safety, environmentally sustainable, with women inclusion and young entrepreneurship, and a Government that promotes equity, solidarity, transparency and zero tolerance to corruption¨

27. THANK YOU