ASUNCIÓN, PARAGUAY & BUENOS AIRES, ARGENTINA – Earlier this week, a delegation from USA Rice traveled here to meet with members of the Paraguayan and Argentine rice industries to discuss cooperation on shared issues and concerns when it comes to international trade.

Paraguay is relatively new to growing rice, beginning less than 20 years ago with the introduction of vertically integrated production systems.  The country grows roughly 520,000 acres and many of the farmers have shares in both rice drying and rice milling facilities.  Similarly, with good global prices during India’s export ban, Argentine farmers increased their harvested area this last year to nearly 530,000 acres.  Both countries have expanded their exports over the last five years with Brazil and other Western Hemisphere countries being key export markets. 

On Monday, USA Rice met with the Paraguayan Chamber of Rice Industrialists (CAPARROZ), representing the country’s 13 rice mills, and the Paraguayan Federation of Rice Producers (FEPARROZ), both of which play an integral role in the industry.  On Tuesday, the two industry groups, together with USA Rice, met with representatives from Paraguay’s Ministries of Agriculture and Livestock, Foreign Affairs, and Industry and Commerce.  And on Thursday, USA Rice and ARROZ Argentino met with the Argentine Ministry of Foreign Affairs for International Trade. 

The main topic at all the meetings centered around Indian policies and practices affecting global rice trade and the importance of continued engagement on this issue at the World Trade Organization (WTO) ahead of the next Ministerial Conference in March 2026 (MC14).  Industry representatives also voiced concerns over the European Union’s non-science-based measures impacting critical crop protectants.

In addition to the impacts seen and felt by U.S. rice farmers over the last decade, rice throughout South America has also been impacted by India’s trade distorting practices that create downward trends in global market prices, making higher quality rice grown in the Western Hemisphere less competitive.  With India’s resurgence in the export market following a year-long export ban, the effects are much more alarming and the need for enforcement of WTO commitments has never been more evident so that growers everywhere can compete on a more equal footing.  In April 2023 and November 2024, Paraguay and Argentina, respectively, joined the U.S. in submitting a counter-notification with regard to India’s rice and wheat subsidies (see USA Rice Daily, April 6, 2023, and USA Rice Daily, November 12, 2024).

“We greatly appreciate the partnerships we have forged with the rice industries in both Paraguay and Argentina with whom we have so much in common,” said Michael Rue, a California rice farmer and vice chair of the USA Rice International Trade Policy Committee.  “It’s so important to have a unified voice on this issue given our shared challenges.  Now more than ever, we need our governments to strongly oppose India’s trade distortion and defend a rules-based trading system through enforcement.” 

Growers in Paraguay and Argentina share similar production practices as well as pest and disease threats as U.S. growers.  All three countries grow rice in similar environments which makes the use of crop protectants a necessity.  Given the increasing regulatory pressure around chemical residues in Europe, U.S. and South American growers have a shared frustration with the non-science-based measures that impact exports. 

“Our WTO objectives continue to be well aligned with the Paraguayan and Argentine governments, and we are hopeful to see continued coordination with the U.S. Administration ahead of MC14,” said Rue.  “Meanwhile, we look forward to working with our friends in the region to collectively address our shared challenges.”

Published Date: November 22, 2025