From paperwork to progress: Paraguay’s digital revolution in food trade

From paperwork to progress: Paraguay’s digital revolution in food trade

INAN There are filing cabinets in the corridor

Paraguay’s National Institute of Food and Nutrition (INAN) has undergone a transformative digital revolution that has significantly improved its food product registration management. This has saved millions of dollars in lost time and accelerated the import and export of food and agricultural processed products. The institute has historically been weighed down by lengthy bureaucratic procedures that have been inefficient, hindering trade, increasing costs, and posing risks to food security and consumer safety. This prompted a collaboration between INAN, the private sector, and support from the USDA Food for Progress program, Trade Facilitating Agricultural Systems and Technologies (T-FAST), implemented by IESC.

INAN oversees food safety regulations in Paraguay but faces challenges in quickly registering and approving food for import and export. The outdated system involves manual processes, paper forms, and significant delays. File cabinets line the institute’s hallways, and the lobby is crowded with producers waiting for appointments. Recognizing the need for reform, five major trade associations came together to fund the development of an integrated system for food registration and control management.

In 2022 and 2023, the IESC built on these efforts by replacing cumbersome paperwork with a streamlined online platform. Applicants can track their submissions in real time and receive timely updates. The digital platform also reduced average processing time from nearly five months to just 25 days, saving the Paraguayan food and trade industries more than $2 million per year. “This acceleration is critical to our dynamic trade environment, as delays can be costly and no company can wait five or six months to get a healthy registration to be able to import new products, market them, and so on,” said Ivan Dumont, President of the Paraguayan Importers Center.

The platform also minimizes direct interactions that could lead to corruption, increasing confidence among local and international producers. Overall, the platform has increased the competitiveness of the country’s agri-food sector and fostered its growth. With the support of the IESC, INAN’s operations are aligned with modern standards, enhancing national competitiveness while meeting regulatory obligations more effectively.

INAN officials process product registration applications electronically

The impact of the INAN digital system is not limited to improving operational efficiency. It has become a catalyst for growth, facilitating market access for local producers, allowing them to scale up their operations and compete globally. The streamlined registration process has diversified the market’s products, reduced consumer prices, and also promoted growth for importers and retailers. “Reduced processing times and increased efficiency have helped to promote trade and, in turn, improve food security in our country. Showing our role in the agri-food chain and food trade, supported by transparency and efficiency, is essential for our country’s progress,” said Elsi Ovelar, Director General of INAN.

IESC is also helping INAN develop a large language model based on the institute’s extensive datasets. The model will be used to train an AI-powered chatbot that will quickly and accurately answer regulatory questions and identify opportunities to improve trade policy.

The program’s success demonstrates the integral role technology can play in modernizing regulatory frameworks and boosting economic development. By leveraging digital innovation, Paraguay is poised to continue making progress in facilitating trade, strengthening food safety, and improving economic competitiveness. To that end, IESC is automating processes at other Paraguayan trade agencies, such as the National Health Surveillance Agency and the National Quality and Plant Seed Health Service, and helping them enhance their digital tools and services.

Trade Facilitating Agricultural Systems and Technologies (T-FAST) is part of the USDA’s Food for Progress program and is implemented by IESC. The program aims to streamline, modernize and harmonize Paraguayan agricultural exports, imports and transportation processes. The program reduces non-tariff barriers to trade and improves predictability through transparency and automation of processes. IESC is implementing the program in partnership with the Center for International Private Enterprise, Kansas State University, and several Paraguayan companies with relevant expertise.

This report was supported by the U.S. Department of Agriculture (USDA). The content of this report is the sole responsibility of IESC and does not necessarily reflect the views of the USDA or the U.S. government.