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Inside the Booming Smuggling Trade Between Venezuela and Colombia
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S dollar compared to just one year ago—and the strong price controls that the Venezuelan government has applied to many basic goods has made it extremely profitable to buy just about anything cheaply in Venezuela, and smuggle it into neighboring Colombia, where no such price controls exist and the local currency, the peso, is significantly stronger. For comparison, the U. Additionally the Venezuelan government artificially controls the exchange rate for its cash. This has led to the rapid decline in the value of the currency. The government has responded by simply printing more money—in February 36 Boeing cargo planes delivered at least 5 billion new bank notes to the country. The currency has become so worthless that it costs more to make a color photocopy of a boliviar bill than the bill is even worth. The economy along the border of the two nations has always been based in smuggling. In the past that smuggling was relegated to cocaine and heavily-subsidized gasoline, with one U. Petrol too is a popular good to move. Though Maduro announced a crackdown on smuggling last year and closed the major border crossings, the financial incentive to keep goods flowing is high. McDermott estimates that the smuggling trade is back up to previous levels. And Colombian smugglers like Gabriela and Camila—two sisters in their 30s, each divorced, who work to support their mother and multiple children—are part of the reasons why. They head past the small city of San Faustino and across the river into Venezuela. Along the way they had to pass back through San Faustino, where a police check point was established to crack down on just this kind of smuggling. Their car was stopped, and as police officers began to inspect the plastic bags of meat in the trunk, Camila slipped a 10,peso bill—worth just over three dollars—to the police officer. After initially expressing concern over the goods, he decides everything is fine and allows the car to continue on. The sisters explain that the bribe is daily cost of business. San Faustino is sleepy town that comes alive at night, thanks to the smuggling trade. Now, under orders from Maduro, the bridge has been blockaded to prevent any vehicles from passing, while police and customs agents check the papers of those who cross by foot. Even here, a location actively monitored by law enforcement, the smuggling is obvious. Those on the return path lug huge bags, often working in pairs just to carry the weight. Inside is everything from baby diapers to cooking oil to cigarettes—all illegal imports, all much cheaper in Venezuela than in Colombia. These commuters are mostly Colombian citizens who lived in Venezuela for years before Maduro announced a crackdown on both smuggling and migration following the murder of three Venezuelan soldiers who were looking for smugglers late last year. The government expelled over a thousand Colombians, while another 20, fled back over the border out of fear. Maduro accused many of the banished Colombians of being part of paramilitary groups and involved in the long-running Colombian civil conflict between the government and various paramilitary forces. However, many of these same people had originally fled into Venezuela to escape violence in Colombia, and were now being forced to return. After months of negotiations, the two governments agreed to allow some Colombians to return to Venezuela for schooling or health care. But the border remains officially closed at night. Less than a quarter-mile downstream from the official crossing point in Escobal, young smugglers gather on the under the shade of tropical trees on the riverbank waiting for work. A ruthless paramilitary group controls this territory, like each of the areas along the border. Paramilitary-related murders are common in this part of Colombia. Less than a thousand feet away from the riverbank is a police station. The motorcycles travel right past with their freshly smuggled contraband. He got out of the drug business, but still runs a profitable commodity depot where smugglers drop off and repackage goods coming from Venezuela. At 1am wood-paneled trucks start pulling into large parking lots outside sprawling warehouses. They are filled with rice, citrus, onions, potatoes, plantains and any other kind of produce or commodity subsidized by the Venezuelan government. The citrus gives away the smuggling operation. But much of the cargo is set for distribution elsewhere. Some of the fully loaded trucks back up to empty trucks with Colombian license plates. With both ends opened to each other young men transfer the cargo and in the process increase the cost by more than tenfold. In other areas they mix the illegal Venezuelan produce with legitimate Colombian produce so that the authorities have a harder time figuring out where the contraband is. As the sun begins to rise the trucks head out for the rest of Colombia. Once the trucks leave the parking lot, the commodities are sold as Colombian goods with Colombian prices. As the truckloads of smuggled goods make their way into Colombia, Gabriela and Camila head back to Venezuela to pick up a new haul of meat. Contact us at letters time. Join Us. Customer Care. Reach Out. Connect with Us. Is Adrenal Fatigue Real? Home U. All Rights Reserved. TIME may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
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