Brazil, Paraguay Challenge Argentina’s Toll on Paraná Waterway

Brazil and Paraguay have challenged the toll imposed by Argentina for vessels navigating the Paraná River, arguing it’s inconsistent with river transport agreements.

This issue presents the first significant challenge for Santiago Peña, Paraguay’s newly elected president.

Argentina has introduced a toll on the waterway segment that stretches from Santa Fe port to the confluence of the Paraguay and Paraná rivers.

Paraguay’s Foreign Ministry sees the toll as a unilateral levy on international transport, which they believe is discriminatory and doesn’t correspond to genuine services offered for navigation.

This, they argue, breaches regional understandings promoting the waterway as a pillar of economic growth.

Meanwhile, Brazil’s Foreign Ministry has highlighted that all nations under the Paraguay-Paraná Waterway Agreement affected by the toll are questioning its legality.

Expert opinions indicate Argentina justifies the toll by claiming responsibility for the waterway’s maintenance.

However, international transporters, especially those flying the Paraguayan flag, predominantly use this segment to cut costs.

Jorge Metz, former Undersecretary for Ports and Waterways of Argentina, asserts that the issue arises from a “lack of institutional communication.”

He emphasizes that if maintenance is inadequate or unnecessary, shipping companies should make formal requests.

Metz believes that the fees are applied according to local legislation, and the challenges to the toll by other countries do not invalidate it.

Experts recommend addressing the dispute in appropriate forums within international law, as the River Transport Agreement enshrines the freedom of navigation along the Paraguay-Paraná waterway.

No conclusions have been reached in the technical commission of the Agreement, suggesting the issue now moves to the Intergovernmental Committee of the Waterway.

Brazil’s embassy in Buenos Aires has been discussing with Argentine authorities to address the toll since January.

The differing interests complicate matters, but they aren’t insurmountable.

Constructive dialogue and enhanced inter-institutional communication may lead to an agreeable solution.