Ships adopt Paraguayan flag to avoid Argentina’s tax burden

RIO DE JANEIRO, BRAZIL – The transportation of goods through the Paraná-Paraguay Waterway could be affected by a drastic measure of force. It would be taken by professional centers that gather the ships’ personnel that navigate the region’s main waterway.

On this occasion, the claim is not due to salary issues but to a union attempt to stop the constant flight of ships from the Argentine Merchant Marine to Paraguay due to the enormous advantages that the neighboring country offers to ship companies registered under its flag.

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“Dear Members: Victim of the bad policies, the lack of regulation of the Merchant Marine Law and the high tax pressure on Argentine flag vessels, plus the inefficient and high state, provincial, municipal, port, customs authorities and security police bureaucracy, the B/M PIRAY GUAZU is sailing to Paraguay to proceed to the change of flag and then continue doing the same commercial traffic that until today did with the Argentine flag”.

So begins the communiqué by which the Centro de Patrones y Oficiales Fluviales de Cabotaje informs (to its associates) of a new case of “exodus” of an Argentine flag vessel to Paraguay, with the subsequent loss of jobs among other dire consequences.

It refers to the “Piray Guazú”, one of the many push tugboats that navigate the Paraná-Paraguay Waterway, driving the so-called “barge trains” that transport bulk goods or containers to and from ports in Argentina, Uruguay, Brazil, Paraguay, and Bolivia.

These ships connect the region’s river ports with the overseas port terminals through which 90% of the region’s exports and imports enter and leave.

“Despite the effort of the crews to make their wages more competitive, the circumstances named above determine the taking of this decision by the shipowning company, which we do not blame, but rather victimize,” the union document states.

“For this reason, we put on alert the whole fluvial fleet dependent on this Center of Skippers, in protection, defense, and care of the sources of work, the national capital, the loss of hold and sovereignty of our seamen”, ends the communiqué.

According to Infobae union authorities, the “Rio Piray Guazú” departure is temporarily delayed due to a temporary cessation of activities applied to the ship while waiting to retain it in the flag. Other maritime unions support this measure.

Likewise, the seafarers have asked the national authorities to prevent the loss of a new vessel at the hands of the Paraguayan flag. “On Monday, we will be making known the plan of action we will take forward to end this bloodletting. If necessary, we will paralyze the entire fleet that transits the Paraná,” the union of navigators maintains.

With information from Infobae