simple line chart of neo and despro, page-4

True, as prices converge the leverage is reduced.

Currently a 20t truck of CE or LA yields a $60,000 profit to the driver/operator. Drive across the border to Vietnam, pay off the border guards, and the local 'main man' and still probably $50,000 profit, less any local taxes in Vietnam.

Great business to be in, say once every 2/3 weeks.

However this is only the leverage smuggling - there is still the illegal production that needs to be taken out of country if the VAT rules are enforced. The increase in domestic prices makes this even more profitable for these dudes.