Saturday 19 June 2021

Argentina, Paraguay Smugglers Use Drug Routes for Contraband Soybeans

The millionaire business of smuggling soybeans along the Paraná River to Paraguay
The big business of smuggling soybeans along the Paraná River to Paraguay

Q24N NEWS (Insightcrime.org) Paraguay is exporting more soybeans than it produces in a tell-tale sign of a booming contraband smuggling trade that utilizes the same cross-border blindspots as drug trafficking in the region.

An investigation by Argentine television news show Periodismo Para Todos (PPT) has revealed how smugglers are moving soya from Argentina into Paraguay so they can export for free instead of paying Argentina’s 30 percent export tariffs.

- Advertisement -

According to PPT, Paraguayan boats pass into Argentina along the Paraná River and either collect soya loads from Argentine boats or moor up in clandestine ports and await the arrival of trucks bringing the beans.

The boats, which tow convoys of containers that can hold up to 900 tons of soya, then travel north along the barely monitored waterway until they reach Paraguay. Once in the country, the soya is recorded as Paraguayan production and shipped abroad.

The contraband boom has been fueled by rising production costs in Argentina and falling global soybean prices, which have made selling to smugglers the only way for many farmers to make a profit, Rolando Muñez from Argentina’s Nelson Mandel Center for Studies and Social Research (Centro de Estudios e Investigación Social Nelson Mandela) told PPT.

The impact of the illicit trade is visible in industry statistics. According to PPT, between 2011 and 2015 Argentina’s soybean production increased 8 percent but exports fell 6 percent. In Paraguay, meanwhile, production rose 10 percent but exports increased by a dramatic 62 percent.
InSight Crime Analysis

- Advertisement -

The contraband soybean boom in the Southern Cone is an example of organized crime capitalizing on an ideal combination of factors.

Firstly, there is the economic. Discrepancies between tax regimes — like the disparity between soybean tariffs in Paraguay and Argentina — are commonly at the heart of contraband smuggling. When economic pressures are added to this, such as growing production costs and falling prices that squeeze producers, then there is major motivation for turning to contraband.

While economic factors provide the incentive, geography provides the method. The Paraná River stretches from Brazil to Argentina, running through the Paraguayan capital Asunción and connecting with the Argentine capital Buenos Aires. It is also largely empty of customs checks and only lightly monitored.

These advantages have made the river a major artery for drug trafficking, especially for Paraguayan marijuana moving into Argentina. As is commonly the case throughout the region, smugglers have been quick to recognize that a good route for trafficking one illicit good is also a good route for other illicit products.

Source Insightcrime.org

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

Argentina decrees night curfew after spike covid-19 contagion

Q24N (Buenos Aires) Nighttime driving will be prohibited in Argentina as...

Argentina tests travelers and reschedules flights to comply with protocols for covid-19

Q24N - Argentina will reschedule all international flights starting Monday, March...

MOST READ

Construction companies that paid alleged bribes would be disqualified for ten years

QCOSTARICA - If it is proven in a final judgment that they did pay bribes to Conavi officials, several companies could be disqualified from...

Your cell phone can now notify you if you had contact with a positive case of covid-19

QCOSTARICA - Fifteen months after the national emergency against covid-19 was declared, Costa Ricans will have a digital platform where you can be notified...

Internet speed decreases during peaks in service

QCOSTARICA - Ever wonder why your surfing on the Internet slows down, to even a crawl, mainly in the evenings? This is due to...

Cynthia Ann Telles named new U.S. Ambassador to Costa Rica

QCOSTARICA - Today, U.S. President Joe Biden announced his nomination of Dr. Cynthia Ann Telles as United States ambassador to Costa Rica. According to the...

Ortega government accuses imprisoned opponents of receiving money from the United States to overthrow him

TODAY NICARAGUA – The Nicaraguan government assures that the imprisoned political opponents detained on charges of “inciting foreign intervention” are “usurpers” financed by the...

Tourism’s path to recovery

QREPORTS - A new travel trends research paper released today by Tripadvisor®, the world's largest travel guidance platform, reveals that vaccine rollouts globally are...

13 Powerful Home Remedies for Acne

Acne is considered to be one of the most common skin ailments on the planet, with a record 60 million people being afflicted by...

Companies covered up defective asphalt

QCOSTARICA - The judicial file of the Cochinilla Case, on alleged corruption in road works, exposes how three companies would have covered up the...

Vaccination commission endorses J & J vaccine, says no to Sinovac

QCOSTARICA - The Comisión Nacional de Vacunación y Epidemiología (CNVE)  - National Vaccination and Epidemiology Commission - endorsed the use of Johnson and Johnson...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.