An investigation by Argentine TV show Periodismo Para Todos (PPT) revealed significant smuggling of soy from Argentina to Paraguay. This illicit trade exploits the same cross-border blindspots that are used for drug trafficking. Smugglers transport soy into Paraguay to circumvent Argentina’s hefty 30% export tariffs. The soy are transported via the Paraná River, where Paraguayan boats either collect soy loads from Argentine boats or dock at clandestine ports to await truck deliveries. Once in Paraguay, the soy are recorded as Paraguayan produce and exported. This contraband trade has been fuelled by rising production costs in Argentina and falling global soy prices, making smuggling a more profitable option for many farmers. The impact of this illicit trade is evident in industry statistics. Between 2011 and 2015, while Argentina’s soy production increased by 8%, exports fell by 6%. In contrast, Paraguay saw a 10% rise in production but a dramatic 62% increase in exports, indicating the scale of the contraband operation.
Source: https://insightcrime.org/news/brief/argentina-paraguay-smugglers-use-drug-routes-for-contraband-soybeans/
Keywords: Latin America, Paraguay, trade and transport, soy, tax evasion, smuggling
The article titled “Paraguayan authorities complicit in illegal razing of country’s forests by EU-linked agribusiness” published on Earthsight, reveals the complicity of Paraguayan authorities in the illegal deforestation of the country’s forests by EU-linked agribusiness. The article is part of Earthsight’s “Grand Theft Chaco” series, which exposes the links between illegal deforestation for cattle ranching in the Paraguayan Chaco and leather used by car giants in Europe. The investigation focuses on PNCAT, the protected land belonging to the Ayoreo Totobiegosode people, including some of the last uncontacted groups in the world. The entire Chaco ecosystem is under intense attack by ranchers and soy growers, leading to the loss of its native forests and rich biodiversity. Two ranches within PNCAT, Caucasian SA and Cooperativa Chortitzer, illegally cleared over 2,700 and 500 hectares of forests respectively between 2018 and 2019 in contravention of government resolutions. Another farm, Yaguareté Porã, has a long history of illegal land dealings and pasture development within PNCAT dating back nearly 20 years. Earthsight was able to link hides from PNCAT to Italian automotive leather giant Conceria Pasubio and on to BMW and Jaguar Land Rover.
Keywords: Latin America, Paraguay, cattle, soy, primary production, agriculture, illegal deforestation
Source: https://www.earthsight.org.uk/news/analysis/paraguayan-authorities-complicit-in-illegal-razing#:~:text=Bono%20for%20Earthsight-,Paraguayan%20authorities%20complicit%20in%20illegal%20razing,forests%20by%20EU%2Dlinked%20agribusiness&text=Earthsight's%20Grand%20Theft%20Chaco%20series,by%20car%20giants%20in%20Europe.
In 2022, two government ministers in Paraguay were dismissed for alleged ties to an organised criminal group in the country. The Interior Minister and the head of the National Emergency Agency were both fired for links to a Brazilian drug trafficker with operations in Paraguay. This trafficker was tied to a criminal group allegedly moved cocaine by air from other countries, especially Bolivia, into Paraguay and then on to consumer markets in Europe and Africa.
In addition, a cattle rancher in Paraguay was arrested for his alleged part in the drug trafficking operation, where he laundered proceeds from the operation through various businesses he owned. During police raids connected with the case, thousands of cattle were seized as well. This highlights the interconnected nature of organised crime in the country with key industries that lead to deforestation, in this case namely the cattle industry.
Keywords: Latin America, Paraguay, cattle, primary prorduction, corruption and bribery, money laundering, drug trafficking, deforestation, serious organised crime
Source: https://www.occrp.org/en/daily/16027-paraguay-dismisses-ministers-over-links-to-drug-trafficking-suspects
According to Al Jazeera, large-scale soy plantations in Paraguay have been encroaching on traditional Indigenous land, leading to deforestation, land dispossession and severe environmental contamination. The expansion of soy production threatens the livelihoods of the Ava Guarani Indigenous community, whose traditional lands are now heavily polluted, causing health issues and damaging crops and livestock. The transformation of forests into soy monocultures has devastated the natural environment that once sustained the Ava Guarani. Pesticides like glyphosate, 2,4D, and paraquat, which are banned in several countries, are commonly used in these plantations, leading to toxic contamination of the land. This has created severe health issues for the locals, including respiratory illnesses, diarrhoea, and vomiting, attributed to pesticide exposure. In addition, the expansion of soy production has led to a high rate of deforestation in the area and to numerous land evictions. In response, the United Nations Human Rights Committee (UNHCR) ruled that Paraguay violated the rights of the Ava Guarani by not controlling pesticide use and failing to prevent contamination. Despite this ruling, the community continues to face challenges, with agribusiness and government corruption obstructing change.
Keywords: Latin America, Paraguay, soy, primary production, deforestation, Indigenous rights, human rights violations
Sources: https://www.aljazeera.com/news/2021/11/30/how-paraguay-indigenous-communities-are-fighting-big-soy
The article titled “Paraguayan authorities complicit in illegal razing of country’s forests by EU-linked agribusiness” published on Earthsight, reveals the complicity of Paraguayan authorities in the illegal deforestation of the country’s forests by EU-linked agribusiness. The article is part of Earthsight’s “Grand Theft Chaco” series, which exposes the links between illegal deforestation for cattle ranching in the Paraguayan Chaco and leather used by car giants in Europe. The investigation focuses on PNCAT, the protected land belonging to the Ayoreo Totobiegosode people, including some of the last uncontacted groups in the world. The entire Chaco ecosystem is under intense attack by ranchers and soy growers, leading to the loss of its native forests and rich biodiversity. Two ranches within PNCAT, Caucasian SA and Cooperativa Chortitzer, illegally cleared over 2,700 and 500 hectares of forests respectively between 2018 and 2019 in contravention of government resolutions. Another farm, Yaguareté Porã, has a long history of illegal land dealings and pasture development within PNCAT dating back nearly 20 years. Earthsight was able to link hides from PNCAT to Italian automotive leather giant Conceria Pasubio and on to BMW and Jaguar Land Rover.
Keywords: Latin America, Paraguay, cattle, primary production, illegal deforestation, agriculture, Indigenous rights
Source: https://www.earthsight.org.uk/news/analysis/paraguayan-authorities-complicit-in-illegal-razing#:~:text=Bono%20for%20Earthsight-,Paraguayan%20authorities%20complicit%20in%20illegal%20razing,forests%20by%20EU%2Dlinked%20agribusiness&text=Earthsight's%20Grand%20Theft%20Chaco%20series,by%20car%20giants%20in%20Europe.
According to the U.S. Bureau of International Labour Affairs, there is strong evidence of forced labour, child labour, and other labour violations in cattle raising areas of Brazil and Paraguay, specifically in the Brazilian State of Mato Grosso do Sul and in the Paraguayan Department of Boquerón. Indeed, in Brazil and Paraguay's extensive cattle-raising industries, employers are using coercive recruitment and employment practices. These primarily affect rural and indigenous populations that are falsely promised improved livelihoods. The growing global demand for beef is driving the expansion of cattle operations in these countries, exacerbating the risk of forced labour. In both countries, small and medium cattle producers, supplying to larger international slaughterhouses, often use advance payments to trap workers in debt bondage. Workers face coercion, threats, and restrictions on their freedom, with employers commonly retaining their identification documents. The remote locations of cattle ranches and workers' reliance on employers for food and housing further contribute to conditions that facilitate forced labour.
Keywords: Latin America, Paraguay, cattle, primary production, forced labour, child labour, modern slavery
Sources: https://www.dol.gov/agencies/ilab/project-increase-worker-voice-and-address-forced-labor-child-labor-and-other-labor#:~:text=Employers%20in%20Brazil%20and%20Paraguay's,the%20promise%20of%20better%20livelihoods