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Paraguay's frontier town a magnet for merchants, criminals
AFP - 2 hours 55 minutes ago
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Paraguay's frontier town a magnet for merchants, criminals
CIUDAD DEL ESTE, Paraguay (AFP) - – This free-trade zone city, a hub in the often lawless tri-border region between Paraguay, Argentina and Brazil, is a magnet for merchants, criminals, spies and even movie directors from around the world.
In the past, foreign intelligence officials have also claimed that Ciudad del Este harbors Islamist terrorist sleeper cells -- an allegation Paraguay denies.
Founded in 1957 on the banks of the Parana river, city merchants are proud to say that you could find virtually anything sold here.
"If you're looking for an elephant, you'll find it in Ciudad del Este," goes the local saying.
Outsiders flock to the stores in this city of 300,000 people and open their wallets to buy duty-free imports flooding in from Asia -- everything from television sets and cameras to perfume and brand-name handbags. Street vendors selling cheap imitations of luxury brand names are common.
Signs announcing sales are written in Chinese, Korean, Hindi and Urdu, a testament to Ciudad del Este's nickname as "the town of 70 ethnicities".
And the city is also home to a foreign-born population, including large Chinese and Arab communities.
"Especially for Brazilians, Ciudad del Este is a mystery," a Brazilian tourist told AFP. "People want to get to know it, but most of them come to buy electronics."
Every day thousands cross the international bridge over the Parana from Brazil to stock up on tax-free goods. The city also attracts tourists visiting the nearby Iguazu Falls, on the border between Brazil and Argentina.
Most buyers visiting Ciudad del Este however are Brazilian intermediaries known as "sacoleiros". These vendors pack their vehicles with the tax-free merchandise, then drive into Brazil and re-sell them at a marked-up price.
The busy trade has turned the city into one of the main economic engines of Paraguay, one of the poorest countries in South America.
Brazil, Paraguay's giant and economically thriving neighbor, sees this flood of cheap imports as a threat to its own industry and has strengthened border controls.
"That will make it more difficult to work," said a Brazilian sacoleiro named Luiz, as he loaded his pickup truck with merchandise.
Officially, Brazil limits tourist purchases of certain items to 150 dollars per person per month.
Brazil "has very strong and powerful industry, and they are the ones working to smother this development," complained Ciudad del Este Mayor Sandra McLeod.
"They should instead work with their much poorer neighbors," she told AFP.
Brazil has sought to legalize the cross-border trade by charging the socaleiros a fee, but the law has not been applied and tensions over the issue have flared between Brazil and Paraguay.
Ciudad del Este also has the reputation of being a hub for money laundering and the sale of illegal drugs and weapons.
Regarding the terrorism allegations, Argentina -- which accused Iran and the Lebanese Shiite group Hezbollah of being behind the bombings of the Israeli embassy in 1992 and the Argentine Jewish Mutual Association (AMIA) in 1994 in Buenos Aires -- claimed afterwards these attacks were carried out with help from supporters based in Ciudad del Este.
US, Israeli and French intelligence agents also combed the city searching for terror suspects after the September 11, 2001 attacks on the United States.
In late 2006, the US Department of the Treasury named nine individuals and two entities located in the tri-border area that it said provided financial and logistical support to Hezbollah.
And in June, Interpol announced it had arrested a Lebanese national suspected of funneling money to Hezbollah in Ciudad del Este.
Paraguayan officials have repeatedly denied the region is a haven for terrorism.
"What annoys us the most is they say they have been looking for a terrorist cell in this city for the past 10 years, but they have yet to find it. Yet that image of us is spreading across the world," said McLeod.
Mohammed Rahal, president of the Islamic Cultural Center of Foz de Iguazu, Ciudad del Este's sister city on the Brazilian side of the border, is also angered by talk of terrorists in their midst.
"We built this town. There was no asphalt, no buildings, and now this thing about terrorism is really hurting us," Rahal told AFP.
The city's wild-frontier reputation has also attracted foreign filmmakers interested in its unique setting.
US director Michael Mann filmed scenes from his 2006 movie "Miami Vice" in Ciudad del Este.
Fellow US filmmaker Kathryn Bigelow, who won the 2009 Oscar for Best Picture for the adrenalin-charged film set during the Iraq war, "The Hurt Locker," wants to make her next movie, tentatively entitled "Triple Frontier", in the region.
The project, however, has angered the tourism ministers of Argentina and Paraguay who are refusing to cooperate with Bigelow, fearing her film will paint the region in a bad light.
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