Page "Economy of Paraguay" Paragraph 17

The Paraguayan government's emphasis on industrial activity increased noticeably in the 1970s.

One of the most important components of the new industrial push was Law 550, also referred to as Law 550 / 75 or the Investment Promotion Law for Social and Economic Development.

Law 550 opened Paraguay's doors even further to foreign investors by providing income-tax breaks, duty-free capital imports, and additional incentives for companies that invested in priority areas, especially the Chaco.

Law 550 was successful.

Investments by companies in the United States, Europe, and Japan comprised, according to some estimates, roughly a quarter of new investment.

Industrial policies also encouraged the planning of more state-owned enterprises, including ones involved in producing ethanol, cement, and steel.