en.Wedoany.com Reported - Multiple agricultural institutions in Paraguay have expressed concerns to Ambassador Rubén Ramírez Lezcano regarding the new biofuel regulations being implemented by the European Union.

During a meeting last week, Ramírez received representatives from the Paraguayan Chamber of Grain and Oilseed Exporters and Traders (Capeco), the Rural Association of Paraguay (UGP), the Paraguayan Chamber of Oilseed and Grain Processing (Cappro), and the Federation of Production Cooperatives (Fecoprod). These institutions informed Ramírez of their critical views on the EU's new biofuel regulations.

Both sides discussed the potential impact of the so-called ILUC regulations (Indirect Land Use Change). According to a statement from Paraguay's Ministry of Foreign Affairs, this regulation is currently advancing within the EU and classifies soybean oil as an unsustainable biofuel.

Following the meeting, UGP President Héctor Cristaldo stated that the EU's measures "could affect not only soybean oil but also the entire soybean production of Paraguay, which is the country's main export product." He lamented, "They classify Paraguay as a high-risk country without understanding the actual situation here, and they believe we are doing things wrong. This is concerning because it could lead to arbitrary, scientifically unfounded denigration of our production."

Soybeans are key to Paraguay's agriculture and economy. The latest foreign trade report from Capeco shows that by the end of the third month of this year, Paraguay had exported 3,026,075 tons of soybeans, an increase of 814,315 tons (37%) compared to 2,211,760 tons in the same period of 2025. This export volume generated revenue of $1.156 billion, an increase of $342 million from $813 million in the same period last year. In terms of markets, 80% of exports were shipped to Argentina, 10% to Brazil, and the remaining 10% to Saudi Arabia, the United States, Uruguay, and Chile.

The industry has submitted a note to the EU in Brussels, Belgium. Cristaldo also pointed out that the EU's regulations "distort" the spirit of the agreement reached with the EU, warning that such measures create uncertainty in international trade.

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