Economy & Business - May-June 2012 (ISSN 1741-7430)

Paraguay has taken a sharp knock from the import barriers erected since last year by its main trading partner in the Southern Common Market (Mercosur), Argentina. Local manufacturers have complained about the arbitrary restrictions and have pressured the Paraguayan government to come out in defence of the country’s economic interests. The government, which has been in arduous negotiations with the Argentine authorities for months, has got nowhere. Frustrated, local businessmen are taking matters into their own hands, seeking out new export markets and actively trying to reduce their dependence on Argentina.