Paraguay and Bolivia Stop Banana Exports to Argentina
2023-11-17
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The Intersectoral Roundtable on Banana Competitiveness (Menicob) and the Paraguayan Chamber of Bananas and Pineapples (Capabap) decided to suspend the loading of fruits to Argentina as of November 13.
On the one hand, the US$ 10 million debt held by Argentine importers is concentrated in three regions of Paraguay. These are Caaguazú, San Pedro, and Cordillera, and the US$12 million owed to Bolivia is for fruit from the Cochabamba region.
So far this year, Paraguay has sent 3,200 trucks of 27 tons of fruit each, worth a total of US$30.3 million, to Argentina, but the payment of the invoices is six months behind schedule, and so far, only US$20 million has been paid.
Those affected demanded the payment of US$ 10 million and distributed part of their production for free in a symbolic way, implying that they were "giving away their production".
The same action occurred in Bolivia, where producers reported difficulties receiving payments for several months. In fact, during a recent demonstration in La Paz, producers said that they have not received "a single dollar since August" from Argentine importers.
That led to some Bolivian companies going into crisis and payment chains being cut off. In total, 22,000 families in the country depend on the sector.
Representatives of the Paraguayan Chamber of Banana and Pineapple Exporters travelled to Buenos Aires to demand payment of the invoices owed and try to reach an understanding to resume trade relations. Still, for the moment, access to dollars remains restricted, and payments continue with delays.
The local import sector is also complaining about the excessive delay in the approval of access to foreign currency by the Import System of the Argentine Republic (SIRA), with terms of around 180 days.
According to INDEC's latest Balance of Payments report, Argentine companies owe US$19.645 billion in credits and trade advances. Almost all of it is attributed to imports that still need to be paid, and the deficit has been growing steadily for over a decade.
In an attempt to pressure the authorities to take measures to solve the problem, a group of banana producers from the tropics of Cochabamba blocked the road at the Campo Pajoso crossing, an international crossing between Bolivia and Argentina, demanding the payment of the debt that the neighbouring country has for the export of the fruit. Due to pressure from banana exporters, fleets, trucks, and light vehicles formed long lines, entering and exiting Route 9 in the municipality of Yacuiba in Tarija.
A delegation of banana exporters travelled to Buenos Aires to meet with authorities and manage the disbursement of USD 12 million.
The President of the Union of Banana Growers of the Tropic of Cochabamba (Uniban), Daniel Ramos, explained that the pressure measure and the visit of a delegation to the Argentine capital are because producers fear that the results of Sunday, November 19 in Argentina, will further devalue the Argentine peso and complicate access to the dollar for buyers from the neighbouring country.
After three days of blockade on the Yacuiba international bridge, banana growers in the Tropic of Cochabamba lifted their pressure measure on November 16 after the disbursement of 30% of the $US 12 million owed to them by Argentina for exports of the product.
The President of the Community Organization of Banana Growers of the Tropic of Cochabamba, Agustín Conde, said that within 15 days, they will conclude with the payment of the remaining 70%.
He stressed that President Luis Arce made arrangements with Argentine government authorities to reach the agreement. They expect the first payment to be made by this Friday.
He warned that they would resume the blockades in Yacuiba and could even reach other borders in case of non-compliance.