Annual imports of cotton yarn, valued at $3-6 million, are an essential component of Paraguay’s textile and apparel industry, supporting both the domestic market and exports to Brazil and Argentina. This contributes to job creation and generates an added value of up to three times the initial investment.

Santiago Colombino, vice president of the Paraguayan Chamber of the Apparel Industry (AICP), stated that Paraguay consistently imports cotton yarns corresponding to HS codes 5204, 5205, 5206, and 5207, which are crucial for the textile and apparel sector.

Colombino mentioned, “Over the last few years, the value of these yarn imports has fluctuated between $3 million and $6 million annually, with a particular focus on 'HS code 5205' (cotton yarn with a cotton content of 85% or more by weight), which is of great interest to the main buyers.”

He added, “These yarns are essential for manufacturing textiles and apparel, including T-shirts, pants, and underwear, for both domestic and export consumption.”

Colombino emphasized, “While the direct investment in cotton yarn imports is relatively small, it plays a key role in keeping the textile industry active.”

“For every dollar of imported yarn, this sector generates two to three times its value in finished products, increasing industrial jobs and bringing in foreign currency through exports,” he said.

According to the AICP vice president, the import market is dominated by five major companies—Hoahi, Manufactura Pilar, Manufacturas Indutex SA, Lunelli Industria Textil Paraguay SA, and Santa Ana—along with several small and medium-sized enterprises.

Colombino explained that the products made from this yarn are supplied to two main markets. “One is the domestic market, which focuses on basic cotton clothing, and the other is the export market to Brazil, Argentina, and other destinations, where the maquila industry (foreign-owned factories that produce goods for export) plays a significant role,” he stated.