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Brazil, Paraguay To Fight Contraband, End Double Taxation 

Brazil and Paraguay Wednesday signed an accord aimed at fighting tax evasion, and stimulating investments between the two countries, Brazilian tax officials said.

Brazil said it loses about 1 billion reals ($1=BRR1.8545) in tax revenue each year because of the illegal import of goods, mainly cigarettes, from Paraguay.

Paraguay, on the other hand, is also seen suffering heavily from illegal trade.

Under the agreement, Brazilian authorities will be allowed, in conjunction with its neighbor's officials, to inspect factories in Paraguay suspected of producing goods to be smuggled.

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