Paraguay is a country located in South America, bordered by Brazil to the east, Argentina to the south, and Bolivia to the northwest. The timber industry is an important sector of the Paraguayan economy, providing jobs and contributing to the country's exports.

According to the Food and Agriculture Organization (FAO), Paraguay has a forest cover of approximately 12 million hectares, which represents 47% of its land area. The main types of forests found in Paraguay are the Atlantic Forest, the Chaco Forest, and the Paraná Forest. These forests contain a variety of tree species, including quebracho, lapacho, palo santo, and cedar, among others.

The timber industry in Paraguay is mostly focused on the production of sawn wood, plywood, and veneer. The main markets for Paraguayan timber products are Argentina, Brazil, Chile, and Uruguay. According to the National Forestry Institute (INFONA), Paraguay exported around 526,000 cubic meters of timber products in 2020, generating approximately USD 85 million in revenue.

The Paraguayan government has implemented several policies and regulations to promote sustainable forest management and prevent illegal logging. These include the Forest Law, which establishes rules for the use and management of forest resources, and the Forest Stewardship Council (FSC) certification, which guarantees that the timber products come from responsibly managed forests.

Overall, the timber market in Paraguay presents opportunities for investors and businesses interested in sustainable forest management and responsible sourcing of timber products.