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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.
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Why do Tourists go to Ciudad Del Este?
Located just across the border from Brazil, and only a few additional minutes from the Argentine border, this is Paraguay’s second-largest city. And 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.
Crossing the Border
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
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
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!
What You'll Find in Ciudad del Este
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.
How much hassle was it to cross the borders
Crossing from Brazil to Paraguay was very easy. If you are just going for the day, you probably don’t even need to check in with immigration. I only had to because I was staying in Paraguay.