Case studies are organised by region, with each region featuring links to the countries where the case studies are located.
Paraguay
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
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
The Environmental Crimes Financial Toolkit is developed by WWF and Themis, with support from the Climate Solutions Partnership (CSP). The CSP is a philanthropic collaboration between HSBC, WRI and WWF, with a global network of local partners, aiming at scaling up innovative nature-based solutions, and supporting the transition of the energy sector to renewables in Asia, by combining our resources, knowledge, and insight.