Ciudad del Este: Black Market in Paraguay

Brazil - Paraguay Friendship Bridge

by Michael Tieso on July 15, 2010

in Destinations,Featured,South America

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Quoted area is from Good

One shop in particular, I’m told, is a clearinghouse for drugs. Armed with the proper introduction, in I went. In lieu of a traditional greeting, the owner simply asks me what I’m looking for, and how much of it I’ll need. “And, yes, we have cocaine,” he adds as an afterthought…

He quizzes me, asking where I live in the city, if I have the cash on me, and if I’ll need assistance getting it back home from Ciudad del Este. Satisfied with my answers, he reaches under the counter to produce a narrow tan brick of densely compressed Paraguayan Brown (marijuana), barely softer than a rock. It looks like AstroTurf.

He asks me again how much I’m looking for and I stutter, blurting out that 50 kilos should do it for now. He chuckles. “We usually sell more than that, 200 or so, but we can do 50. One second.”

He leaves the room to make a phone call, and a moment later returns: “It’ll be $20 U.S. a kilo,” he says. “And are you sure you don’t need any help getting that to Argentina?”

Original and full article on Good and found on Boing Boing

The streets of ciudad del Este in Paraguay

The streets of ciudad del Este in Paraguay by www.thousandflavors.com

This is Cuidad del Este in Paraguay. Conveniently, just across the bridge from Brazil and a few minutes from Argentina.

For Ciudad del Este, Paraguay, the black market is legal and there’s is no taxation on any of the goods. People buy what they need in Paraguay and then go into Brazil or Argentina with it. For example, Argentina’s electronics are over-priced and taxed to an unbelievable amount. If you want to bring purchased electronics across the border, it needs to look used as if it wasn’t bought in Paraguay, otherwise it’ll just be taxed to the same amount as if you bought it in Argentina.

Widely open, people are buying dozens if not thousands of electronics from Xbox360’s, laptops, and TV’s and illegally bringing them into other countries to sell. For this to happen there are many underground passages that lead into Brazil and Argentina. Another way is a boat that drops off most items on an island that’s owned by Paraguay and at night picked up to bring to the Brazil side. Again, at 6pm, shifts change between security with a 15-minute gap and during that time everything is rushed over into Brazil. You’d think that perhaps they would stop this from happening but the reality is Paraguay lives off of this and maybe if it wasn’t for this – the country would collapse. People are paid off in Brazil and Argentina as well. It’s a big business. Could Paraguay survive without the black market?

Ciudad Del Este - Paraguay

Ciudad Del Este - Paraguay by Fausto Barros

It doesn’t stop at electronics though. They have cologne, toys, drugs, guns, and whatever else your heart desires and easily accessible to find. How convenient, you can buy a Barbie doll, a Matchbox car, an AK47, and a kilo of cocaine within a few minutes. Want it delivered? No problem, the store will smuggle that in to your address for a few extra dollars.

The city itself is a slum. Not very appealing at all. The electrical wires by the apartments is a fire just waiting to happen. The layout of the city didn’t make much sense to me (I don’t think anything is suppose to make sense here). High profile malls across the street from broken down apartment buildings. The malls and streets are filled with security men holding shotguns and semi-automatics though surprisingly most are not even cops and merely hired security to look tough near stores.

Ciudad del Este: Black Market in Paraguay

This was in the electronic shopping mall. Everyone is repackaging their items to condense the shipment to smuggle it into Brazil or Argentina.

The hassling of people reminded me a lot of China and SE Asia. Ten year old children hassling you to buy socks that even when you say no, they still won’t go away.

Needless to say, if you’re going to visit Iguazu Falls anyway – you may want to consider visiting Ciudad del Este for it’s unbeatable shopping prices. It’s only a thirty minute bus ride from Argentina’s Iguazu Falls. I don’t suggest going back to Brazil or Argentina with any grenades though.

  • http://www.neverendingvoyage.com Erin

    Ciudad del Este is a crazy place – it reminded us of India and was quite a shock after Argentina. I think it’s a shame that most travellers don’t venture past this border town though. It’s very different from the rest of Paraguay which we loved, but we only saw 3 tourists in 3 weeks.

  • http://artofbackpacking.com Michael

    How was the rest of Paraguay? I’ll admit, I had only went for Ciudad del Este. I didn’t even expect to go there until I got to Iguazu and found out about that city. I’m sure the rest of Paraguay has nothing to do with how that town is like.

  • http://www.neverendingvoyage.com Erin

    Ciudad del Este is a crazy place – it reminded us of India and was quite a shock after Argentina. I think it's a shame that most travellers don't venture past this border town though. It's very different from the rest of Paraguay which we loved, but we only saw 3 tourists in 3 weeks.

  • http://artofbackpacking.com Michael (ArtofBackpacking.com)

    How was the rest of Paraguay? I'll admit, I had only went for Ciudad del Este. I didn't even expect to go there until I got to Iguazu and found out about that city. I'm sure the rest of Paraguay has nothing to do with how that town is like.

    • Oscar

      Paraguay is a beautiful country with very nice and friendly people. The rest of the country doesn’t have anythng to do with CDE. It is full of honest working people, in 2011 Paraguay was the fastest growing economy in the world, the GDP grew 15.3%, and this is official verified data (not including any of the CDE business), mainly due to soybean and beef exports (4th and 8th largest producer in the world). At the edge of CDE’s urban area the soybean crops start and you can see them all the way to the horizon for hundreds of miles. There are very nice cities in this country, and you’ll find all the same sofistication, good taste and luxury that you would expect in a first world city, with international chain hotels, excelent restaurants, great shoppping (legal and good quality products, still at convenient prices), fantastic golf, beautiful country and yacht clubs, there is a lot of river fishing and dove hunting (well organized and legal, there is a lot of hunting tourism, only for dove, other specias are protected though). I can only say it is worth visiting. Go to Asuncion, the capital and largest city, and from there you can tour the country and discover marvelous things.

      • http://artofbackpacking.com Michael

        Thanks for the tips Oscar! I think on my next trip to S.America, I’ll have to explore the rest of Paraguay. I’ve heard many good things and it seems off the beaten path compared to many other destinations in S.America.

  • Diego Torres

    Michael you were very ignorant when you wrote this and you seem to be fan of the typical action movies, you invent too much hehe, you were to downtown of the city and yeah all there in dowtown is addresses to trade and not very tidy, but that is’t the whole City, don’t generalize and talk sh#t of what you don’t know.. im from Paraguay i use live in Asuncion but now living in Ciudad del Este and it is a great place to live

    • http://www.artofbackpacking.com Michael

      I think you’re forgetting the whole point of the article and could be that you’re not really understanding English. I did NOT say Paraguay was not beautiful. In fact, I didn’t mention any other city of Paraguay. I’m 100% sure the rest of Paraguay is totally different and in fact I’ll be visiting soon so I can get a real taste of the culture of nature of Paraguay.

      You being a local, I can understand that you’re on the defensive side. However, It’s not lie what I mentioned here of what Ciudad del Este IS. Don’t lie to yourself that it isn’t a black market and holds true power to the economy of Paraguay. I made no generalization of the entire Paraguay, only of THIS city and what happens there.

      Sorry to hear that I’ve offended you so much.

  • http://twitter.com/OnAJunket On A Junket

    A good quick tidbit of what can be found in the city. I for one like to go both parts of the country, the good and bad. When I travel I usually end up in the slums  just to learn that there is a reality behind the tourist attractions. And on a side note, if i was a local and wanted to make a quick buck I would definitely smuggle electronics across to Brasil. You can make triple the amount there…Well that’s how it is when you smuggle it into the  Brasil from the US..