MercoPress. South Atlantic News Agency

Pulp mills dispute: Madrid offers possible way out to deadlock

King Juan Carlos with the two delegations for the offical picture of the meetings

Uruguay and Argentina with the facilitating efforts of the Spanish Crown seem to have found this week in Madrid a possible way out for the deadlock over the pulp mills controversy which has soured bilateral relations between the neighboring countries.

Meeting in one of King Juan Carlos's palaces and far from exposure to flashlights, representatives from President Tabare Vazquez and President Nestor Kirchner finally, following two days of meetings and dialogue, signed the Declaration of Madrid, which summarizes the conflict and commits both sides to act with an "open agenda" spirit and no pre conditions. Uruguay's side was headed by Cabinet Secretary Gonzalo Fernandez and Foreign Affairs minister Reinaldo Gargano and the Argentine delegation by Alberto Fernandez, cabinet chief and Foreign Affairs minister Jorge Taiana plus technical and support staff. Spain's dialogue "facilitating efforts" are implemented by Ambassador Juan Antonio Yáñez Barnuevo. The dispute is focused on a pulp mill, almost finished, constructed by Finland's Botnia on a shared river, which Argentina objects arguing Uruguay ignored a bilateral 1975 waterway joint management agreement plus environmental risks which is supported by pickets who openly and with increasing aggressiveness question the plant, want it relocated, and for months have been blocking bridges leading to Uruguay. Uruguay denies any wrongdoing or environmental risks and Argentina insists in relocation of the plant and a return to negotiations. Uruguay admits "dialogue" but no negotiations until pickets are definitively lifted. The Madrid Declaration basically states that both sides are willing to reach a final agreement, with Uruguay possibly admitting it did not comply with all the 1975 shared management agreement steps, and Argentina considers that maybe it's too late for relocation. Both sides also agreed that none of the information from the "open and frank" dialogue can be used in the pending demands before the International Court of The Hague or in the Mercosur Disputes tribunal. The four (ample) points refer to: the Botnia-Orion project including its localization and other relevant questions; circulation in routes and bridges linking both countries; the enforcement of the River Uruguay Statute and the environmental protection of the River Uruguay and the promotion of sustainable development in its areas of influence. Before signing the declaration both sides contacted their presidents, Vazquez and Kirchner, with the support of Ambassador Yañez Barnuevo who drafted and helped with the wording of the "very political and diplomatic" statement, which will also includes regular "technical" meetings. The following meeting is scheduled at "technical" level in a "month's time" probably in New York, where Ambassador Yañez Barnuevo normally resides since he's Spain's delegate before United Nations. "I don't wish to down value difficulties between both countries, but there's no issue in the world that can not be solved through dialogue", said the Spanish facilitator. "For us it's very important that we can discuss the localization of Botnia's plant and for Uruguay the issue of the blockages is very important", admitted Argentina's Fernandez. Uruguay's cabinet chief Gonzalo Fernandez was also enthusiastic, "I'm convinced we can finally reach an agreement". But pickets in Gualeguaychu who have been at the centre of the discussion, decided to continue with the blockage of bridges leading to Uruguay and are scheduled to have a meeting with Alberto Fernandez next Tuesday to discuss the results of Madrid. "In Gualeguaychu they should be satisfied" with the talks in Madrid because environmentalists "know very well what we came for and that is to assert our position", said Foreign Affairs minister Taiana in Madrid. But in Gualeguaychú the reaction was different. "Here we are facing a violation by Uruguay of the shared management statute and they can't ask us to lift the blockage", said Egon Fritzler, one of the pickets' hard liner leaders. "We all know how this works: for seven months we kept the route open and there was no dialogue, so this is no condition to lift the blockage", he insisted. "I think it's childish to argue that there's no dialogue because there's blockage, because when there was no blockage there was no dialogue, so dialogue will have to take place with bridges cut".