MercoPress. South Atlantic News Agency

Argentina ‘inflexible’ on Uruguayan pulp mill expansion; Cristina and Mujica could meet in New York

Timerman and Governor Uribarri on the campaign trail

Argentina promised to be ‘inflexible” with the UPM pulp mill on Uruguayan territory, if it tries to increase production as it has requested, thus again opening a new controversy with Uruguay which has pledged to answer the (2011) expansion request in the last week of September. Presidents Cristina Fernandez and Jose Mujica are scheduled to meet in Buenos Aires at the end of the month.

“It is perfectly known that if UPM increases production, it increases contamination, and to this effect we are going to be inflexible”, said Argentine foreign minister Hector Timerman following a meeting on Monday with the governor of Entre Rios Sergio Urribarri, Senator Pedro Gustavino and the mayor of Gualeguaychú, Juan Bahillo.

Entre Rios province and the city of Gualeguaychú are across from the UPM pulp mill in Fray Bentos along the shared and jointly managed River Uruguay which acts as a natural border between Argentina and Uruguay. UPM has requested to increase annual production from 1.1 million to 1.3 million tons.

Since Uruguay authorized the original Botnia plant, Argentina has objected alleging pollution and environmental reasons, leading to a serious several -year confrontation that ended in the International Court of The Hague, and with a better personal relation between Cristina Fernandez and Uruguay’s newly elected Jose Mujica.

“The law is very clear: there’s a River Uruguay treaty which impedes unilateral modifications of environment conditions of the river and its basin, and increasing production means modifying it “, insisted Timerman.

He added that Argentina wants UPM to invest in ‘diminishing pollution’ (yet to be proved) and “we have presented innumerable evidence that the river has been affected by the construction of the mill” said the Argentine minister.

Timerman said that the situation created by UPM to increase pulp production in 200.000 tons per year “it not a problem between Uruguay and Argentina; what really is going on is that the company wants to put pressure on both governments, make us squabble, to increase profits with no further investments or caring for the environment to which it is obliged”.

“Under no circumstances are we going to accept pressures from a foreign group which is not Uruguayan or Argentina”, underlined Timerman.

According to Argentina UPM is already producing above the allowed limit (one million tons dry per annum) established in the International Court ruling in 2010, which decided on the case presented by Argentina with strong support from Entre Rios and Gualeguaychú.

Governor Urribarri which is aligned with Cristina Fernandez said that if UPM puts pressure on Uruguay, Argentina could very well return to the International Court of The Hague, “we’re talking of an option, unless there’s another way. Statements from Uruguay have been confusing, and we trust the foreign ministries will find a solution.

Last month UPM announced it would be closing down the pulp mill for a few weeks for maintenance work and was expecting an answer from the Uruguayan government requesting the increase in production which was presented in 2011. Otherwise it would have to extend the stoppage until mid November.

President Mujica caught by surprise by the release said that he was considering the matter, but under no circumstances could Uruguay ‘irritate’ Argentina or Cristina Fernandez, particularly since the summer season was round the corner and ‘our main customers and investors are Argentines, so prudence and silence”.

This caused an immediate reaction from the opposition who called Mujica’s foreign policy, with Argentina as ‘genuflexion’, and the different unions and industries linked to the UPM pulp mill also came out strongly demanding the government ensures work, jobs and naturally the expansion project.

Urriburri also said that on 6 September Argentina requested in a letter to Uruguay the need to release the latest scientific reports on environment impact refereed to the UPM mill. However Uruguayan members of CARU, the committee which administrates River Uruguay waters and environment has repeatedly stated that it is Argentina that refuses.

“Can you imagine Argentina not making public the reports if they were contrary or incriminating for UPM?; the Argentine arguments are political nonsense”, said Luis Hierro one of Uruguay’s delegates in CARU.

However Mujica after insinuating that Uruguay could authorize a partial production expansion at UPM also stated that “the company can and should do more” apparently referred to the temperature at which the pulp mill’s effluents are dumped back into the river Uruguay   

But the unions also joined the confusion. If the UPM plant is to be closed for two months then the company should compensate the difference between what truck drivers make a month and the jobless insurance, demanded the transport workers union.

Juan Llopart head of the union said that since the company will be completing its annual production before time, (thus the two-month closure) and its profits won’t be affected “it is totally unfair that truck drivers should only be paid unemployment insurance during the two months”.

Meantime across the river in Gualeguaychú the ‘environmental assembly’ will be meeting this week to decide on measures on respond to the situation.

“The Argentine government is addressing the issue too mildly. The area is full of sulphur escapes and the water is contaminated” complained Martin Alazard one of the leaders of the group which organized pickets that closed the bi-national bridge linking Argentina with Uruguay for several years running until 2010.

At the end of the month Cristina Fernandez and Jose Mujica have scheduled an informal meeting for the inauguration in Buenos Aires of a new gas-powered non-contaminating catamaran which can join Montevideo with Buenos Aires in two hours and ten minutes.

Cristina Fernandez will be the godmother of the vessel named Francis in honour of the Pope, and the two leaders could then address the UPM issue face-to-face according to Montevideo political sources that also downplayed governor Uribrarri statements, ‘he’s on a political campaign for next October, and things are not running smoothly for him”.

Mujica and the Argentine ambassador Dante Dovena addressed the issue last week at a pizza parlour. Mujica was warned about Argentina’s ‘inflexible’ position on the issue and it was decided that Dovena and Uruguayan ambassador in Buenos Aires Guillermo Pomi keep talking to find a way out.      

Nevertheless the interested parties will be the first to be informed of the decision on the UPM expansion, anticipated Diego Canepa Deputy Executive Secretary. Mujica will be out of the country in New York for the UN assembly from September 23 to 28.