Diplomatic Relations Tense over Pulp Mill Dispute

November 26, 2007 Border Argentina-Uruguay. Fearing community groups would march overland across the border to protest against the Finnish pulp mill recently inaugurated by Botnia, Uruguay closed its terrestrial borders over the weekend, completely, at the only three crossing available: Colón-Paysandú, Salto-Concordia, and Fray Bentos-Gualeguaychú. Argentina summoned the Uruguayan ambassador to Buenos Aires, Francisco Bustillo, “to express its concern and displeasure” with the measure.

This marks the second time in one month that the government of Uruguay has taken official unilateral border measures against its neighbor, and to impede community stakeholders from voicing their opinion about the installation of the most controversial industrial project everin the region.

Argentina defended the community's right to manifest its peaceful opposition to the controversial Finnish pulp mill headed by Erkki Varis, CEO of Oy Metsa Botnia , which has constructed a 1 million ton/yr ECF paper pulp mill (now the largest in Latin America), against the damning verdict of the World Bank's fiscal auditor on social and environmental norms, the Compliance Advisory Ombudsman, as well as against the wishes of over 300,000 thousands people who have marched peacefully on numerous occasions to voice their opposition with the mill site and expected contamination.

The Argentine Foreign Minister contacted The Argentine Consuls at the crossing points to certify that the Uruguayan government had closed the borders, so that the measures could be duly informed to the International Court of Justice at the Hague, where Argentina maintains and open dispute with Uruguay which is expected to be resolved some time in 2008, possibly, ordering a relocation of the mill.

Community groups planned to gather at the Las Cañas beach resort in Fray Bentos, the city where now, the largest Latin American pulp mill has begun to produce ECF pulp, a less than preferred technique which spews fowl smelling pollutants into the air and water. The tourist operators of Uruguay's most famous river resort, have joined community group stakeholders in Argentina and environmental groups in Uruguay to oppose the mill installation. Business leaders in tourism in Fray Bentos recently declared the beach tourist industry dead, because of the Finnish pulp mill.

Because of the border closures, local community representatives stayed overnight at the bridge crossings, in vigil, awaiting a border opening, to cross into Uruguay and proceed to Las Cañas. If not, their resolve was to revert to a water crossing, or through neighboring Brazil.

The Botnia project is financed and promoted by IFC (of the World Bank), Calyon (of Credit Agricole), Nordea, Finnvera (the Finnish Export Credit Agency), the Nordic Investment Bank and brokered by SEB.

For More Information

jdtaillant@cedha.org.ar