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LatinNews Regional Monitor: Brazil & Southern Cone - 08 February 2018

In brief: Paraguay

Paraguay: Lorry drivers in Paraguay have called off a strike which began 15 days ago after reaching a deal with the government led by President Horacio Cartes. The strike had been called after the public works & communications ministry (MOPC) authorised Brazilian long combination vehicles (LCVs) to enter Paraguay. The decision angered Paraguayan lorry drivers who fear they will be driven out of business by the increased competition. Héctor Cristaldo, the president of the Unión de Gremios de la Producción (UGP) local producer's union put the cost of losses caused by the strike at US$100m. According to the labour ministry, the agreement was sealed after the two sides agreed to increase freight rates by between 10% and 15% compared with 2016. The government already agreed on 2 February to suspend the entry of Brazilian LCVs into the country until a deal could be reached with the striking lorry drivers.

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