# Illegal trade and organized crime in Brazil

> Live situation record from CLSTR: https://clstr.news/situations/illegal-trade-and-organized-crime-in-brazil
> Updated: 2026-09-04T07:00:04.000Z. Sources: 4. Developments: 2.

Discussions regarding illegal trade in Brazil have highlighted significant economic and security concerns. Initially, business leaders at a seminar in Brasília, including representatives from the National Confederation of Trade in Goods, Services and Tourism (CNC), called for fairer competition and better regulation to protect formal businesses. The CNC reported that illegal trade resulted in annual losses of R$ 179.2 billion in retail sales and R$ 74.8 billion in tax revenue, while noting that taxing small-value imports helped preserve nearly 99,000 formal jobs.

Subsequent reports indicate the scale of the issue has expanded, with the National Forum Against Piracy and Illegality (FNPC) estimating total losses across 15 sectors could exceed R$ 500 billion. The nature of this illicit commerce has evolved from individual smuggling into highly organized networks integrated into global logistics. Criminal factions, including the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV), are reportedly using smuggling profits to fund operations, purchase weapons, and corrupt state agents. Smuggling activities along the Brazil-Paraguay border are particularly significant, with an estimated R$ 60 billion moving annually, though authorities estimate only 5% to 10% of smuggled goods are successfully seized.

## Timeline

### 2026-09-04: Brazil illegal trade losses reach R$ 500 billion

Illegal trade in Brazil has reached an estimated R$ 500 billion in 2025, driven by organized crime factions using smuggling to fund operations and expand logistics networks.

4 sources. https://clstr.news/cluster/brazil-illegal-trade-losses-reach-r-500-billion

### 2026-08-13: CNC advocates for fair competition to combat illegal trade in Brazil

At a seminar in Brasília, the CNC highlighted that illegal trade costs Brazil R$ 179.2 billion in retail sales and R$ 74.8 billion in taxes annually, calling for stronger enforcement and tax parity.

7 sources. https://clstr.news/cluster/cnc-advocates-for-fair-competition-to-combat-illegal-trade-in-brazil

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Cite as: Illegal trade and organized crime in Brazil. CLSTR, https://clstr.news/situations/illegal-trade-and-organized-crime-in-brazil