Amambay Department

Amambay occupies Paraguay's northeastern corner—a border department where Pedro Juan Caballero faces Brazilian Ponta Pora in a twin-city complex notorious for drug trafficking that shadows formal commercial activity. The department's economy mixes legitimate agriculture with illicit flows that complicate development and governance.

The dry border with Brazil—separated only by a street rather than a river—creates conditions for commerce both legal and illegal. Goods, people, and contraband cross with minimal friction. Drug trafficking organizations have established presence, with violence that periodically erupts creating security challenges that deter formal investment.

Agriculture provides the legitimate economic foundation. Cattle ranching and some soybean production occupy lands converted from forest. The department's relatively small population—under 200,000—reflects limited agricultural potential compared to the more fertile southern departments.

The city of Pedro Juan Caballero functions as a service center for the surrounding agricultural zone and as a transit point for cross-border commerce. Shopping tourism from Brazil provides some retail activity. By 2026, expect agricultural production to continue at modest scale, security challenges to persist as trafficking routes evolve, and the twin-city dynamic with Ponta Pora to define economic and social life regardless of national borders.