Brazil questions toll charged by Argentina on waterway
The Brazilian government is questioning the toll charged since the beginning of the year by the government of Argentina on the Paraguay–Paraná Waterway. According to Brazil’s Foreign Ministry, all countries that are part of the Paraguay–Paraná Waterway Agreement affected by the toll are questioning the legality of the fee.
“In the understanding of Brazil, Bolivia, Paraguay, and Uruguay, the Argentine government has not been able to demonstrate that the toll is levied on a service provided on the waterway.” According to the ministry, this is the condition stipulated in the waterway compact for any collection, as mere traffic must not be legally charged.
The topic has been discussed in the Agreement Commission—a technical body—with no conclusion reached, and should now be taken to the Intergovernmental Committee of the Waterway, of a political nature. Since January, the Brazilian embassy in Buenos Aires has worked to eliminate the levy with Argentine authorities.
Recently, a Paraguayan-flagged tugboat owned by a Paraguayan subsidiary of a Brazilian company was detained on the waterway. The incident was described by the Brazilian Foreign Ministry as a matter of concern, as it goes against the freedom of navigation and legal security.
“From the Brazilian viewpoint, we are concerned about the escalation of the situation with vessels detained over debt collection, as the toll has been legitimately brought into question by the other member states of the Waterway Agreement within its framework,” the statement reads.
The Brazilian Association for the Development of Inland Navigation also views with extreme concern the unilateral imposition of fees and the decision to retain the Paraguayan company’s vessel.
“The decision affronts the interests of Brazilian companies established or operating along the Paraguay river. In recent years, we have had high Brazilian investments in terminal construction and the acquisition of assets for navigation,” the association noted.
