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Jennifer L. Tucker, Associate Professor of Community & Regional Planning, University of New Mexico

Paraguay's Ciudad del Este: Efforts to force a busy informal commercial hub to follow global trade rules have only made life harder for those eking out a living

Vendors at work on a bustling Ciudad del Este street packed with stalls. Jennifer L. Tucker, CC BY-ND

Paraguay’s Ciudad del Este is a busy South American contraband hub where scrappy Paraguayan vendors and Brazilian traders mix with businessmen from places as far away as Lebanon and South Korea. This hive of activity moves billions of dollars’ worth of consumer goods – everything from smartphones to whiskey.

The city was built as a commercial hub around low taxes and tariffs, benefiting both well-to-do traders and poor workers. In its bustling main market – eight square blocks packed with street vendors, brick-and-mortar businesses and cavernous shopping galleries – thousands of Paraguayans eke out a living selling fake Gucci handbags, fishing poles and even contact lenses.

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