Uruguay's economy expanded 2.4% in the first quarter compared with the same 2013 period, but contracted 0.4% compared with the fourth quarter of last year, the central bank said this week. However deceleration is a fact since growth of the first quarter in 2013 has gone up 4.6% over 2012.
Argentine foreign minister Hector Timerman said that the pulp mill dispute with Uruguay is 'political' and wondered how great is Finland's' Botnia-UPM influence in the country, but at the same time underlined that all chances of dialogue have been 'exhausted'.
The lasted chapter of the resurgent diplomatic conflict between Argentina and Uruguay was not addressed during a brief encounter of presidents Cristina Fernandez and Jose Mujica in Bolivia where they attended the G77 plus China summit over the weekend.
Argentina reacted strongly and with a letter in harsh terms to Uruguay's decision to authorize Finland's UPM-Kymmene pulp mill to increase annual production by 8%. The letter addressed by Foreign minister Hector Timerman to his peer Luis Almagro informs Argentina will take the case to international tribunals and is currently 'reassessing' bilateral relations.
Argentina's clash with Uruguay over the Botnia/UPM pulp mill has led to furious retaliations from Buenos Aires severely limiting trade and not allowing Argentine exporters to make use of the port of Montevideo for transshipment.
The Uruguayan government announced it has renewed until 2016 Botnia/UPM pulp mill license so it can continue with production since it complies with the necessary environmental requisites and is committed to the additional standards demanded, said Housing and Environment minister Francisco Beltrame.
Uruguayan former president Jorge Batlle (2000/2005) said on Facebook that Argentina will again be a normal country when President Cristina Fernandez disappears from the political stage. And when this happens the Argentines are going to be happier and as a consequence so will we.
Argentina has made public its first retaliation against Uruguay over the Botnia/UPM pulp mill controversy and has banned Argentine exports from being trucked to Montevideo for shipment overseas. The resolution was published Tuesday in the Official Gazette and invokes maritime transport agreements in the framework of Mercosur.
“There are no relations, diplomatic relations (between Argentina and Uruguay) are managed by Zanini and me” confessed Uruguayan ambassador in Buenos Aires Guillermo Pomi to Argentine opposition lawmaker Elisa Carrió.
The Uruguayan government rejected on Wednesday Argentina’s ultimatum referred to the UPM (former Botnia) pulp mill production expansion, and doubled the bet by proposing a reform of the shared River Uruguay Statute to increase environmental impact standards but also include both margins of the waterway.