Argentina’s General Ports Administration (AGP) has signed an agreement with the U.S. Army Corps of Engineers to improve the conditions of the Paraná-Paraguay Trunk Waterway, the U.S. Embassy in Argentina said in statement.
Juan Belikow, professor of International Relations at the University of Buenos Aires, Argentina told Diálogo on March 19 that “this agreement focuses on crucial issues such as environmental aspects, regulation of trade and navigation, excluding security aspects.”
Gastón Benvenuto, AGP controller, added that the agreement marks the beginning of a new phase in river management. “We will take advantage of the know-how provided by this agreement to improve resource management, dredging and beaconing technification, in addition to strengthening personnel training.”
The AGP agreement, signed on March 7, will boost collaboration between the two administrations, focusing on improving efficiency, training in port management, waterway maintenance, environmental preservation, and infrastructure development.
“This partnership is a clear example of how our countries can bring together technical experts to optimize the management of our essential infrastructure,” said U.S. Ambassador to Argentina Marc Stanley.
The AGP also noted that U.S. engineers manage the Mississippi River waterway, which bears similarities to Argentina’s Trunk Waterway, as both are vital for international trade and the transport of agro-industrial crops, ranking among the world’s longest navigable waterways.
These similarities are significant. In the case of the Mississippi, 80 percent of U.S. agricultural production is transported by this waterway, Argentine platform Pescare reported. Meanwhile, in Argentina, 80 percent of national exports use the river route, according to the Argentine government’s website.
The Paraná-Paraguay Waterway, with an extension of more than 3,400 kilometers, facilitates uninterrupted navigation between the ports of Argentina, Brazil, Bolivia, Paraguay, and Uruguay. On March 14, Paraguay requested the revival of the Master Plan for the Waterway with the United States, according to Paraguayan daily ABC.
Paraguay
The Paraguayan Chamber of Oilseed and Grain Processors (CAPPRO) welcomed the agreement between Argentina and the U.S. Corps of Engineers to improve waterway management, ABC reported. This development is significant for the union, which has been advocating for a similar agreement between the United States and Paraguay.
According to Sandra Noguera, CAPPRO general manager, “the expertise and capability of the U.S. Army Corps of Engineers will be critical to ensure the safe and competitive navigability of the waterway year-round,” she told ABC.
The agreement between the U.S. Corps of Engineers and Paraguay focuses on conducting technical studies on the country’s sovereign stretch of the waterway, without the participation of Argentina, in contrast to previous attempts involving shared waters. Although the memorandum was signed in 2023, ABC reported, it has yet to be presented before Paraguay’s Congress.
According to Paraguay’s Ministry of Public Works, the project would require an investment of close to $20 million, Argentine daily La Nación reported.
Window of opportunity
Esteban Dos Santos, representative of the River and Maritime Shipowners Center in Paraguay, pointed out to ABC the importance of allowing for an integral approach to the entire Paraguay-Parana Waterway basin. “Each country cannot continue with isolated studies and projects; this does not achieve regional integration,” he said.
This comprehensive approach “will move forward because it is not a surrender of sovereignty, which eliminates risks in that sense. Argentina is currently seeking close cooperation with the United States and distancing itself from China, excluding it from control of the waterway,” Belikow said. “This is an excellent positive sign for the region.”
Although Latin America has not yet seen the full consequences, other regions are already seeing negative effects of relations with China, “such as corruption,” Belikow added. “Some of these relations are characterized by secret clauses, generating a lack of transparency in financing agreements, preventing the disclosure of details of such agreements in Latin American countries.”
“This agreement represents a window of opportunity,” Belikow said. “Argentina, with its influence in the region, is an example followed by other countries.”
Significant impact
International security is also at stake in the Paraná-Paraguay Waterway, due to the increase in drug trafficking. According to former president of the Argentine Agrarian Federation Pedro Peretti, “this waterway is crucial for transporting drugs to Europe,” Argentine daily Página 12 reported.
“Improving the management of the Paraná-Paraguay Waterway will have a significant impact on reducing vulnerabilities and facilitators of crime,” Belikow said. “It’s important to consider that Argentina’s partner in this agreement is not a private company, but a U.S. military agency.”
Although not expressed in the memorandum of understanding between Argentina and the United States, “monitoring and transparency in the waterway management can help eliminate levels of corruption. This could be crucial to the success of the project. Having an agreement with a U.S. government institution provides assurance in this regard,” concluded Belikow.