October 30, 2003

 

 

Paraguay Criticises Brazil's Decision To Block Paraguayan Soy

 

Paraguay's agriculture minister yesterday decried as illegal a decision to block the entry of Paraguayan soy into the Brazilian state of Parana, hence sparking the possibility of a political dispute.

 

On Monday, the state government banned genetically modified soy and Paranagua, Brazil's main soy port in Parana state, suspended soybean shipments for 4 - 5 days while the grain was tested.

 

Soy trucks are being blocked from entering the state without proof their cargoes are not genetically modified.

 

Officials in Parana, which borders Paraguay, seized nearly 1,000 tons of genetically modified Paraguayan soy, part of a larger cargo to be sold in Paranagua.

 

"They can't interfere with a free port. What they are doing is illegal," Agriculture Minister Antonio Ibanez told reporters, adding Paraguay's access to the port is ensured by an international agreement.

 

"The foreign ministry will lodge a formal complaint with Brazil's federal government," Ibanez said, without giving further details.

 

The Paraguayan Chamber of Grain and Oilseed Exporters said the decision to block soy exports at Paranagua could disrupt 30% of Paraguay's remaining shipments, which would have to be rerouted via rivers to eventually get overseas.

 

Cesar Jure, head of the chamber, said the quantity of genetically modified Paraguayan soy is negligible.

 

Paraguay plans to export 3.5 million tons of the 4.2 million tons of soy produced during the current campaign. According to local figures, Paraguay is the fourth-largest soy exporter in the world.

 

Since February, approximate 100,000 tons of Paraguayan soy have been shipped via the port in Paranagua, according to the chamber.