Ciudad del Este Black Market: A Comprehensive Guide to South America’s Largest Black Market

Ciudad del Este black market

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I passed by stalls filled with American clothing and fake designer brands. I chose a random mall to enter, and discovered that it had 5 floors worth of stores selling guitars, stereos, and other musical equipment. I left the mall to be greeted by a man on the street, offering me guns, prostitutes, and any kind of drug I could imagine.

This is Ciudad del Este, Paraguay.

Table of Contents

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Where is Ciudad Del Este?

Ciudad del Este is located in eastern Paraguay, just across the border from Brazil, and only a few additional minutes from the border with Argentina. It is the second largest city in Paraguay.

Why do Tourists go to Ciudad Del Este?

Ciudad del Este is the largest black market in South America. This city is a free-trade zone, which allows goods to be sold cheaply due to tax exemptions. It is also the origin of many different smuggling operations into neighboring countries.

The cost of living in Brazil and Argentina is much higher than that of Paraguay. In addition, there’s certain taxes that you must pay in these countries when purchasing electronics.

Fortunately for the people living in this region where the borders of Paraguay, Argentina, and Brazil meet, Ciudad del Este specializes in selling cheap electronics. It’s very common for Argentinians and Brazilians to drive across the border to buy televisions, video game consoles, and other electronics, and then return to their home countries.

In fact, about 85% of Paraguay’s tourism comes from Argentina and Brazil, and mostly from short-term stays in Ciudad del Este.

Parana River Island, border between Paraguay and Brazil
Taken from the Friendship Bridge, the border between Paraguay and Brazil. This island belongs to Brazil, but smugglers from Paraguay (left) leave contraband here to be picked up by Brazilians.

Crossing the Border into Paraguay

When I crossed the 500-meter Friendship Bridge from Foz do Iguaçu, Brazil to Ciudad del Este, there were dozens of other people crossing as well. The difference was I was the only one who stopped by the immigration office on the Paraguayan side of the bridge. Everyone else crossed without having their legal documents or belongings checked.

I could have easily gotten into Paraguay without going through immigration, but I knew I would need an entry stamp for when I continued my journey onto Bolivia.

Smuggling Operations into Brazil

Officially, you do not need to declare less than $300 worth of goods brought from Ciudad del Este to Brazil. People have found loopholes to this law by getting some of the boys and young men sitting by the bridge to transport any items in excess of the $300.

Everyone looks the other way because Ciudad del Este relies so heavily on foreigners, especially Brazilians, to stimulate their economy. This city is also responsible for nearly 10% of Paraguay’s GDP, so these operations will likely continue into the foreseeable future.

There is also a small island that sits in the middle of the Paraná River, near the Friendship Bridge. This island technically belongs to Brazil, but smugglers often take boats from Paraguay and leave contraband on the island. This is picked up by Brazilians and taken to their side of the river.

Smugglers who are bolder (or have paid off officials) can take products directly across the river.

The Importance of Language in Ciudad del Este

Language skills are definitely important in this city. The Brazilians who visit aren’t able to negotiate down the price as well as the Spanish-speaking tourists from Argentina. If you want to save as much money here as possible, you will need to make sure you are proficient in Spanish. Or, even better, Jopara.

As I crossed the Friendship Bridge, a man tried to convince me to enter a cellphone shop in Ciudad del Este. He assumed I was from Argentina, and I told him I wasn’t. He then asked if I was Brazilian, which I also denied. He actually stopped walking to think about where I could be from. With a puzzled expression, he finally asked, “So, where are you from?”

He couldn’t believe that an American would be crossing the Friendship Bridge into Ciudad del Este. If you can’t speak Spanish, Portuguese, or Jopara, you better find a translator if you want communicate with anyone there!

mall in ciudad del este
This mall was 7 stories tall and completely filled with cell phone stores.

What You'll Find in Ciudad del Este Black Market

The towering buildings bring a welcoming reprieve from the scorching March heat, as my journey through the city is almost entirely in the shadows of these buildings. I’m surrounded by malls everywhere I look, and it seems like each mall specializes in a certain product.

As I stepped into one mall, I was immediately greeted by a huge array of electronics. Storefronts display the latest smartphones, tablets, and cutting-edge gadgets, all at very cheap prices. I was only passing through Ciudad del Este, so I turned down every offer the vendors hurled at me.

Beyond the malls, where you can find dedicated buildings for clothes, musical instruments, and electronics, you can find pretty much anything you wanted on the street.

As I walked along the streets, the variety of  products offered quickly expanded into illegal territory. In addition to everyday household objects, vendors were offering prohibited items that hinted at the thriving underground market. I didn’t need to stay long to imagine the discreet exchanges that took place here on a regular basis.

I did not want to run into any trouble, so I quickly headed to the bus station.

Leaving Ciudad del Este

I am glad that I am just traveling with a small backpack. Between the armed security carrying automatic weapons outside of malls, the hordes of kids running up to you and trying to sell you candy or phones, and the sharp contrast between the relatively affluent foreigners shopping in high-rise malls across the street from impoverished residents in run-down apartments, I decided that I’ve seen enough of Ciudad del Este

I walked for about an hour to get to the bus terminal. But first, I stopped by a Burger King for some A/C and an açaí milkshake (not something I would find back home!). I was ready for my 5 hour bus ride to Asunción.

Resources For Your Trip

Book A Cheap Flight
The first place to look for cheap flights is Skyscanner. This website gathers information from different companies and websites around the world to find the best deals for you. One of their best features is the ability to see the cheapest day to fly each month. Google Flights is another excellent resource.

Book A Place To Stay
Booking.com is my go-to website for booking accommodations. They consistently have some of the best prices for hotels and frequently have deals. For hostels, I use Hostelworld. If you specifically want to rent a home, check out AirBnB or Vrbo.

Looking For A Tour?
The best resource for looking up tours is GetYourGuide. This company will make planning your itinerary a breeze. For budget travelers, I recommend looking up available tours here and trying to organize them yourself to save some money.

Use Your Phone Abroad
Whenever I travel abroad, I use Airalo. This is a company that offers eSIM services via a phone app. It is very convenient and you won’t have to worry about swapping SIM cards out of your phone. You can pay a few dollars for plans that range from 1 week to 1 year. Use the Promo Code ANDREW9734 for $3 off your first purchase!

How To Travel On A Budget?
Traveling on a budget is my specialty. Check out my post on Traveling Internationally With Only A Personal Item. For other ideas on saving money while traveling, check out my ebook The World Is Yours: How to Afford International Travel on a Budget.

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Andy Alcala

Hey there! I'm a travel enthusiast always seeking new adventures. I've visited over 70 countries, mostly in Africa, Latin America, and Asia. I prefer to travel off the beaten path, where I've discovered hidden gems and authentic cultural experiences that are often overlooked by most travelers. I look forward to sharing my stories with you!

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jp
jp
1 year ago

How much hassle was it to cross the borders

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