Paraguay-Argentina river rift will have a wider impact

Significance

In response to the toll placed on river traffic using the Argentine section of the Paraguay-Parana waterway, known as the Hidrovia, the Paraguayan government has also withdrawn its half share of energy from the binational Yacyreta hydroelectric plant, nearly all of which is normally sold to Argentina.

Impacts

• Progress on the toll dispute will remain stalemated after a meeting of the Hidrovia commission yesterday ended without agreement.
• Bolivia, Brazil and Uruguay will press their opposition to the toll before the Mercosur’s Permanent Review Tribunal (TPRM).
• Relations with all affected countries could deteriorate if Javier Milei wins the Argentine presidential contest.