From Paperwork to Progress: Paraguay’s Digital Revolution in Food Trade

Paraguay’s National Institute of Food and Nutrition (INAN) has undergone a transformative digital revolution, significantly improving its management of food product registrations. This is saving millions of dollars in lost time and expediting the import and export of food and agricultural processed goods. Historically burdened by lengthy bureaucratic processes, the institute’s inefficiencies hindered trade, increased costs, and posed risks to food security and consumer safety. This prompted a collaborative effort involving INAN, the private sector, and support from the USDA Food for Progress project, Trade-Facilitating Agricultural Systems and Technology (T-FAST), implemented by IESC.

INAN, responsible for overseeing food safety regulations in Paraguay, faced challenges in swiftly registering and approving foods for import and export. The archaic system involved manual processes, paper forms, and significant delays. File cabinets lined the institute’s hallways, and the front lobby was filled with producers waiting for appointments. Recognizing the need for reform, five major trade associations collectively funded the development of an integrated system for food registration and control management.

IESC built on these efforts in 2022 and 2023, replacing cumbersome paperwork with a streamlined online platform. Applicants can track their submissions in real-time and receive timely updates. The digital platform has also reduced the average processing time from nearly five months to just 25 days, saving more than US $2 million per year for Paraguay’s food and trade industry. “This acceleration is crucial to our dynamic trade environment, where delays can be costly and no firm is able to wait five or six months to obtain a health registration to be able to import a new product, market that new product and so on,” says Ivan Dumont, president of the Importers Center of Paraguay.

The platform has also minimized direct interactions that could facilitate corruption, boosting confidence among local and international producers. Overall, the platform has enhanced the competitiveness of the country’s agri-food sector and contributed to its growth. Thanks to IESC’s support, INAN has aligned its operations with modern standards and reinforced national competitiveness, while fulfilling its regulatory obligations more effectively.

The impact of INAN’s digital system extends beyond operational efficiencies. It has been a catalyst for growth, facilitating market access for local producers, enabling them to scale operations and compete globally. Streamlined registration has diversified market offerings and lowered consumer prices, fostering growth for importers and retailers as well. “Shortened processing times and enhanced efficiency contribute to trade facilitation and, in turn, improve food security within our country. Demonstrating the fulfillment of our role in the agri-food chain and food trade, supported by transparency and efficiency, is vital for our country’s progress,” says Elsi Ovelar, director general of INAN.

IESC is also helping INAN develop a large language model tailored based on the institute’s extensive dataset. The model will be used to train a chatbot powered by artificial intelligence, which will provide swift and accurate responses to regulatory questions and identify opportunities to improve trade policy.

This initiative’s success showcases the indispensable role of technology in modernizing regulatory frameworks and promoting economic development. By leveraging digital innovations, Paraguay is poised to sustain its progress in facilitating trade, enhancing food safety, and advancing economic competitiveness. To that end, IESC is automating processes at other trade institutions in Paraguay – such as the National Directorate of Health Surveillance and the National Quality and Plant and Seed Health Service – and helping them enhance their digital tools and services.

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Trade-Facilitating Agricultural Systems and Technology (T-FAST) is a USDA Food for Progress program implemented by IESC. It aims to simplify, modernize, and harmonize processes for the export, import, and transit of agricultural goods in Paraguay. The program reduces nontariff barriers to trade and enhances predictability through transparency and automatization of processes. IESC is implementing the program in partnership with the Center for International Private Enterprise, Kansas State University, and a variety of Paraguayan firms with relevant expertise.

This story is made possible by the support of the United States Department of Agriculture (USDA). The contents of this story are the sole responsibility of IESC and do not necessarily reflect the views of USDA or the United States Government.