Page 10 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

At present, certain species of soybean are being planted in the Chaco.
This region, with higher temperature and lower rainfall, has ample rich
land suitable for agriculture as well. It is estimated that the Chaco could
produce another 30 million tons in soybean alone.

C. Climatic Conditions

Temperate to cool weather in the Eastern Region together with the proper
amount of rain make it optimal for grain production. On the other hand,
temperate to warm weather in the Chaco accompanied by a suitable
amount of rain make that region optimal to generates grasses rich in
minerals. The grass in the Chaco is naturally salty. Cattle raised there are
robust and healthy and require minimum care.

The median temperature in the country is 28C (82F), while the
temperature in the summer could reach 40C in some parts of the country.
The median rain is 1,500mm. (60 inches approximately). Both,
temperature and rain have no critical swings during the year.

D. Trade Status

The country is seeking to enhance its business climate in order to attract
foreign investments and foster economic growth. Per the World Trade
Organization, Paraguay has a very open trade and investment climate. It
also stated that foreign trade is an important factor in her GDP which
reflects the high degree of openness in the country’s economy.

The main exports are agricultural seeds and grains, frozen meat and
bovine related products, and electric energy. The main imports are petro-
products, cars, appliances, electronics, construction and agricultural
machinery, agricultural chemicals and fertilizers.

The major commercial partners are MERCOSUR, EU, USA, China, Japan,
South Korea and Russia.

The Government of Paraguay signed an agreement with the US for which
the US will assist to the Ministry of Public Works to keep the Paraguay
River navigable all year-round for the anticipated increase in navigation.
Both rivers, the Parana and the Paraguay, are navigable all the way down
to the Rio de la Plata.

Map 3 shows the strategic location of the country which is in the heart of
MERCOSUR. The Paraguay River divides the country in two and the
Parana River borders the Eastern Region.

The import and export gates are the Rosario Port Facility in Argentina and
the Palmira Port Facility in Uruguay. Those ports are equipped with all
necessary heavy equipment and infrastructure for commerce within
MERCOSUR. From those ports, all cargoes are loaded to ocean-going
vessels.

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