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Last Update: July 16, 2008
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- Paper Pulp Mills - Uruguay
- Corporate Accountability and Human Rights
- Climate Change and Human Rights
Protestors Gather In Front of Finnish Embassy to Protest Botnia’s Pulp Mill in Uruguay
Buenos Aires , 25 April – Vocal protestors gathered in front of the Finnish Embassy in Buenos Aires yesterday to protest against Botnia (a Finnish company) building one of the world’s largest pulp mills on the Uruguay River, the natural waterway border between Uruguay and its neighbor Argentina. Protestors coincide with a visit of the Finnish Mister of Trade to the region, during which she has refused to talk about Finnish involvement in the highly controversial mills, and hot on the heels of the Argentine Prime Minister’s calls for the Finnish government to rein in Botnia, which has ignored requests by both Argentina and Uruguay, to stop construction, until further environmental impact studies can be carried out. New studies were called for not only by Argentina but also be a World Bank report indicating that previous studies were incomplete and on many fronts, inconclusive to clarify concerns of Argentine residents, opposing the mills. Botnia’s refusal to halt construction so that the two countries could sort out differences, has fractured negotiations between Argentina and Uruguay, and all hopes for a negotiated settlement, which had been reached in the eleventh hour but thwarted by Botnia’s last minute refusal to collaborate due to falling stock prices should they cease construction. Botnia has already announced plant closures and layoffs back home, presumably to export its pulp production and its contamination, south.
Finland’s Minister of Commerce cancelled her upcoming visit to Argentina following an announcement by Argentine President Kirchner, that she would not receive a warm welcome. Public opposition to the troubled pulp mill project continues to mount, exacerbated by Botnia’s refusal to cooperate in the negotiating process. Botnia has already been the object of an OECD complaint filed earlier this month by CEDHA, for violations to OECD Guidelines for Multinational Enterprises, and for its unwillingness to help reach a friendly settlement. The Finnish government is also under pressure as its relationships to Botnia and to the mills, are being uncovered. The Finnish government is a large stakeholder in the investment, with a 39% share of Kemira, a chemical company currently in construction on the Botnia mill site, contracted by Botnia to supply chlorine dioxide to the giant pulp plant and holds stock of Botnia, although the government announced recently that it would divest in the controversial company.
Diplomacy is very heated in the MERCOSUR region, with countries like Brazil, Chile and Venezuela trying to contribute to dialogue in fear of potential impacts to trade relations with Europe and amongst Mercosur members. Uruguay is requesting that a multi-billion dollar gasline investment, slated to go to Uruguay through Argentina, be diverted so as not to run through Argentine territory, for fear that Argentine’s could retaliate against the mills, by cutting off Uruguay’s gas supply. Uruguay meanwhile, claiming a loss of US$400 million due to roadblocks by concerned local residents, is desperately seeking redress from the Mercosur trade block. Argentina meanwhile, is set to send the case to the International Court of Justice, and has it’s best international lawyers working on the filing, which is expected in the first week of May.
More Information
For more information contact:
Jorge Daniel Taillant
Center for Human Rights and Environment (CEDHA)
Tel. 54 3541 494 162
Cel. 54 9 351 625 3290
jdtaillant@cedha.org.ar
