Milei highlights contrast between Argentina’s decline and Paraguay’s progress
Wednesday, September 17th 2025 – 20:04 UTC
I can’t help but think about what my country can learn from Paraguay, Milei stressed
Argentine President Javier Milei praised Paraguay’s economic progress and highlighted the political alignment between the two countries.
During his speech before Congress in Asunción on Wednesday, the Libertarian leader highlighted that while Paraguay has experienced sustained growth and controlled inflation over the past two decades, Argentina has declined economically.
While you have not stopped growing, we have deepened our decline, Milei said. I can’t help but think about what my country can learn from you, he also reckoned. If we compare the last 20 years, we will find almost diametrically opposite results, Milei further stressed.
Milei noted the success of Paraguay’s maquila regime, contrasting it with Argentina’s deficit national industry. He also underscored the political similarities between his government and President Santiago Peña’s, including their shared support for Israel and their decision to open embassies in Jerusalem.
The Maquila regime is a system designed to promote industrial development, job creation, and export growth, which allows companies to produce goods or provide services on behalf of a foreign company (the “matrix”) under an international contract, with all production destined for export. It was established by Law No. 1064 in 1997 and regulated in 2000 by Decree No. 9585. Companies under this regime enjoy preferential conditions, including exemptions on import duties for raw materials and machinery. The mechanism has significantly contributed to Paraguay’s economy, generating thousands of jobs and boosting exports. However, everything stemming from the Maquila scheme must be exported, depriving local consumers of these goods.
Milei emphasized that, thanks to the maquila regime, Paraguay has managed to get the most out of its local industry, increasing exports and generating genuine jobs. Meanwhile, Argentina spent the last century financing a loss-making industry from the state, due to the ideological whims of politicians in power, rather than market demands.
The Argentine president also outlined ongoing and future bilateral projects, such as the construction of a new international bridge, the study of exporting natural gas from Argentina to Paraguay and Brazil, as well as agreements to improve the efficiency of the Paraguay-Paraná Waterway.
Milei stated that he hoped this cooperation would improve the lives of citizens in both countries and serve as a regional example of trade openness. It is our deepest desire to improve the quality of life of our peoples, ensuring that more Argentine goods and services can access the Paraguayan market and vice versa, the Argentine head of State pointed out while assuring that cooperation between Argentina and Paraguay can become a regional example of trade openness and shared development.
He also praised Paraguay’s ability to tame the scourge of inflation, while Argentina ended 2023 on the brink of another inflationary process, which was avoided by his administration.
Beyond the ties that bind us, both nations have presidents who understand that the state should not be an obstacle to development. Both have returned the state to its essential function, which is to create conditions for private initiative to flourish, Milei also said.
