Encarnación, Paraguay Encarnación, Paraguay Encarnación () is a district and the capital city of Itapúa Department in Paraguay, located at the south-east of the department, on the right-hand (western) shore of the Paraná River, opposite Posadas, Argentina. The city has an area of 274 km² and a population of 93,497 (2002 Census). Encarnación is the third-largest city of Paraguay. Encarnación is connected to the Argentine city of Posadas by the San Roque González de Santa Cruz Bridge and the International Train. The city is located on Route 1, some 370 km (225 miles) from Asunción, and located on Route 6, some 280
Economy of Paraguay Most of Paraguay's trade takes place with Uruguay, Brazil and Argentina. In 2002 Paraguay conducted more than US$400 million in trade with Argentina and nearly US$800 million with Brazil. Paraguay is also a member of the Inter-American Development Bank, Latin American Integration Association, and Latin American Economic System and a signatory to the agreement creating the South American Community of Nations. In 2004 Paraguay signed an energy cooperation agreement with Venezuela to purchase oil and petroleum. Venezuela agreed to concessional financing that allowed Paraguay to pay over a 15-year period at a nominal interest rate. Imports totaled US$3.3 billion in