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Why Brazilian factories are crossing the bridge to Paraguay

Asunción, the Paraguayan capital. Photo: Wirestock Creators/Shutterstock

The Friendship Bridge between Foz do Iguaçu and Ciudad del Este has long carried Brazilian shoppers hunting for cheap electronics. It now carries production lines. 

Lupo, the century-old sock maker from Araraquara, spent BRL 30 million (USD 5.88 million) on a plant in Ciudad del Este in 2025. Karsten began weaving towels on the Paraguayan side this year, Kidy moved children's shoes across, and Döhler announced its first factory outside Brazil. Six Brazilian-origin companies put more than USD 182 million into Paraguay in 2025 and 2026.

The magnet is the…

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