Common external tariff and its influence on Paraguay's foreign trade (2000-2019)

Abstract

Since 1995, the Common External Tariff (CET) has been implemented in the Southern Common Market (Mercosur), although it is punctuated by several exceptions. The objective of this paper is to analyze the influence of the CET on Paraguay's international trade during the period 2000-2019. The methodology employed contemplates the documentary-bibliographic design, descriptive level and quantitative approach. Therefore, the gravity model of trade was used for the proposed study. Among the main results of this research is that Paraguay has an open economy, with a surplus trade balance and that Mercosur is the main destination for Paraguayan exports and one of the main suppliers of its imports. In addition, the model used shows that the CET could have a positive impact on Paraguay's international trade during the period under study.