Compañía Paraguaya de Comunicaciones (COPACO S.A.) is the leading fixed-line telephony operator in Paraguay and is wholly state-owned. It is reported that, in December 2001, within the framework of the “Reorganisation of Decentralised Public Entities and the Reform and Modernisation of Central Administration Organisations” established by Law No. 1615/2000, the former National Telecommunications Administration (ANTELCO) was converted into Compañía Paraguaya de Comunicaciones Sociedad Anónima (COPACO S.A.), as a 100% state-owned company. COPACO also owns 100% of the mobile service operator HOLA.

According to Art. 33 of the Public Procurement and Contracting Law, in international contracting procedures, the bidders shall grant the benefit of a 10% margin of preference to bids that incorporate (i) the use of the country's human resources and (ii) the acquisition and lease of goods produced in the Republic of Paraguay.

In accordance with Art. 27 of the Public Procurement and Contracting Law, an Annual Public Procurement Program is established to promote micro, small, and medium-sized enterprises (MSMEs). This program must specify expenditure items and categories from the Catalogue of Goods, Services, Consultancy, and Public Works that are designated for preferential contracting with MSMEs. The Law requires each entity to set an annual market reserve for MSMEs, aiming to reach 20% within a period not exceeding five years from the law's enactment.

Paraguay is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2019.

It is reported that the telecommunications sector is open to competition, except for fixed lines and international carrier services, which remain under State monopoly with the "Compañía Paraguaya de Comunicaciones". This is despite full foreign ownership being allowed in the telecommunications sector.

Paraguay is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

According to Art. 33 of the Public Procurement and Contracting Law, international contracting may only be pursued under two conditions: (i) when a market analysis conducted by the bidder determines that no domestic suppliers, consultants, or contractors are able to offer the required goods, services, consulting, or work, either in terms of quantity, quality, or price; or (ii) when, following a national call for bids, no proposals are submitted, or none meet the requirements specified by the bidder. Art. 33 further establishes the obligation to register an address in Paraguay or to designate a local representative for the purposes of the relevant communications at the time of contracting in the case of a foreign bidder.

Pursuant to Art. 11(b) of Resolution No. 049/2025 de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is PAB 100 (approx. USD 100), below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).

Law No. 45 and Executive Decree No. 24 provide a comprehensive framework for consumer protection that also applies to online transactions. Law No. 45 regulates consumer relations and specifies consumer rights, including suppliers' responsibilities to consumers. Executive Decree No. 24 also provides provisions applicable to technological storage services and commercial services through the Internet.

Panama has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Panama has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.

Law No. 51/2008 establishes a safe harbour regime for intermediaries for copyright infringements. Arts. 88-91 of the Law provides a safe harbour that shields network operators, service providers, online trade service providers and storage service providers from responsibility. In addition, a safe harbour provision forms a substantial part of the intellectual property chapter in the FTA entered into between the United States of America and Panama (Art. 15.11, para. 27).

Law No. 51/2008 establishes a safe harbour regime for intermediaries beyond copyright infringement. Arts. 88-91 of the Law provides a safe harbour that shields network operators, service providers, online trade service providers and storage service providers from responsibility.

Art. 4 of Law No. 51/2009 establishes that mobile telephone operators, their subsidiaries and authorised agents that commercialise services with activity systems through the prepaid card modality must keep a record of the identity or general information provided by their customers who acquire a telephone unit or smart card (SIM) with such payment modality.