Mercosur’s Key Waterway Toll Triggers Diplomatic Crisis Among Members

Argentina’s decision to unilaterally impose a toll on the Paraguay-Paraná waterway, a crucial commercial axis for Mercosur, has sparked tensions among its members. Paraguay, Brazil, Uruguay, and Bolivia have issued a joint statement urging Argentina to cease the toll, with Paraguay seeking international arbitration. An Argentine delegation visited Paraguay to de-escalate tensions, and a task force has been established to discuss the dispute. Argentina justifies the toll, which began on January 1, 2023, as necessary for maintenance costs. The situation escalated when Argentina detained a Paraguayan ship that tried to avoid the toll. Paraguay’s president, Santiago Peña, expressed his discontent and hinted at potential legal action, referring to the Treaty of Asunción that ensures free trade and navigation.