Pulp Mill Dispute - April 2006

April 2006

The relationship between the political actors of both countries became tense after the resumption of the blockade. Catholic Church leaders in both vowed to facilitate the dialogue (though specifically not to act as mediators). The governments of Finland and Spain denied the possibility of intervening in the affairs involving Botnia and ENCE. The Finnish Minister of Foreign Trade and Cooperation for Development, Paula Lehtomäki, cancelled a visit to Argentina citing a concern that she might not be welcome, and stated that the conflict was to be solved among Argentina, Uruguay and the two private companies.

Uruguay threatened to resort to the World Trade Organization, since the blockades "violate basic principles of international commerce" and were not cleared by the Argentine authorities, thus causing an economic loss to Uruguay (which they estimated at $400 million). The Uruguayan government also considered a demand on the International Court of Justice, claiming that the blockades have violated human rights by preventing the free circulation of persons and goods.

During an official visit to Mexico, Uruguayan president Tabaré Vázquez said that "while leaders are talking about an integration process, one of these countries" (Argentina) "is discriminating against another one with a blockade." He added that that was "a policy of disintegration", and proposed, once more, to discuss the issue using Mercosur's established institutions.

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