Smuggling of Tobacco From Paraguay Cigarette smuggling from Paraguay leads to 90 percent of all production, or $1 Billion worth of cigarettes, to be smuggled into the illegal markets of Brazil and Argentina. Source: Marina Walker Guevara, Mabel Rehnfeldt, and Marcelo Soares, “Smuggling Made Easy,” Tobacco Underground, Center for Public Integrity, June 28, 2009.