Argentine-Uruguay Paper Conflict Deepens

The long-running conflict between Argentina and Uruguay regarding the building of two paper plants in Uruguay continues to deepen with Uruguay announcing that it is to abandon direct talks between the presidents of both countries. It says it is looking to Mercosur to arbitrate and help resolve the conflict which has seen Argentine environmental activists blockade the border with Uruguay. The roadblocks are having a serious economic impact on Uruguay. A truce agreed in March between the two presidents which was due to last 90 days was broken after Finnish company Botnia, one of the plants’ investors refused to cease construction work for more than 10 days. The $1.7 billion commitment from investors Botnia and Spain’s Ence represents the largest single investment in Uruguay’s history.