Source: O Popular - GO - 12/10/2009

While Brazil has been increasingly affected by the smuggling of Paraguayan cigarettes, the sector is experiencing a paradox: the national industry is increasing its exports to the neighboring country and fueling the illegal tobacco trade.

A survey carried out by the sector shows that Brazil is already the largest supplier of tobacco to Paraguay - it accounts for 60% of the market - and has increased the sale of other inputs, such as acetate cable (used in the filter), printed matter, liners and paper , according to a report by Gustavo Paul published on GLOBO this Sunday.

This fact is worrying the Brazilian government, which since the first semester has been negotiating with the Paraguayans a way to contain smuggling.

At the negotiating table, according to one of its members, Brazil tries to play hard. First, he asked for exports from local cigarette factories to be legalized. For this, they will need to adapt to the requirements of the Brazilian Ministry of Health and Agriculture. If the conversations do not evolve, the government threatens to tighten inspection, which may make some local companies unfeasible.

Barriers to exports of cigarette supplies may be adopted. In this case, the export registration would be required, where the destinations of the goods must be informed and proof that they are used by accredited companies.