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Paraguay: Contraband, aided by neighbours, ’A cancer’ for Paraguay’s economy

By  |  July 21, 2015

Paraguay has the conditions needed to grow and develop, but faces obstacles in the form of unfair competition, caused by merchandise dumping, contraband and artificial restrictions imposed by fellow MERCOSUR members – So declared the leader of Paraguay’s Consumer Cleaning Product Manufacturers Association (AIDA).

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    While mentioning examples of fellow Latin American countries who have solved issues with contraband and dumping, such as Argentina and Brazil, the spokesman further declared that these countries “have fully understood the enormous multiplying effect that the Manufacturing sector brings, which when strong is able to create and fortify other economic activities, such as trade and services.”

    The official made special mention of the damage caused to these activities by the influx of contraband. He went on to accuse Paraguay’s neighbours of failing to curb this contraband, as excess production in their own countries is smuggled through Paraguay’s porous borders, to be sold at rebate prices that harm local manufacturers.

    Paraguay’s Ministry of Industry is legally empowered to seize and control the sale of contraband taking place in all manners of self-service, retail and wholesale business. However, their powers are only rarely used.

    Source: ABC

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