Kathrine Bigelow and Mark Boal are planning a film on Ciudad del Este.
The Oscar-winning director is reported to be considering a film about the triple border region, where Argentina, Paraguay and Brazil meet.
The area is a major focus of smuggling, as well alleged fundraising for Islamic militant groups.
But it is also home to Iguazu Falls, dramatic waterfalls that are a popular tourist attraction.
Paraguayan and Argentine officials have expressed outrage at reports that Bigelow was considering shooting a film – tentatively titled “Triple Frontier” – about organised crime in the border region.
“We were indignant when we discovered that this project seeks to portray a region shared by three South American countries in a negative light,” said the Argentine tourism secretary, Enrique Meyer.
“They want to tarnish us as the bad guys of the world,” his Paraguayan counterpart Liz Cramer said.
There has been no comment from the Brazilian government.
The triple border region has long been associated with drug-smuggling and other contraband trade.
It is also home to a large Middle Eastern community. The United States has identified it as a source of funding for Islamic militant groups such as Hezbollah in Lebanon, though Brazil, Argentina and Paraguay reject that allegation.
Bigelow is reported to be considering a script set in the region by writer Mark Boal, who also wrote her Oscar-winning triumph “The Hurt Locker”, one real bad war movie, I must add! READ MORE HERE