European Union backs Metsä-Botnia in pulp mill dispute with Argentina

Minister Lehtomäki cancels visit to Argentina

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Peter Mandelson, the European Commissioner for Trade, has given his strong backing to the Finnish company Metsä-Botnia in the dispute with Argentina over the construction of a pulp mill in Fray Bentos in neighbouring Uruguay on the river that marks the border between the two countries.
      During his current visit to Finland, Mandelson said that he had said while Buenos Aires recently that the Finnish company has the best possible reputation, and that it does not have double standards for investments in Europe and elsewhere.
      Meanwhile, Finland’s Minister for Trade and Industry Paula Lehtomäki (Centre) announced on Thursday that she would cancel her planned visit to Argentina. Lehtomäki was to have travelled to Argentina during an upcoming tour of South America with a Finnish trade delegation. On Thursday she said that she does not want to become "a pawn in the game".
     
Mandelson said that he does not understand why Argentina opposes the construction of the pulp mill, which has been approved by Uruguay and the World Bank. The project has sparked opposition in Argentina, which fears negative environmental consequences.
      Metsä-Botnia’s investment of about a billion euros in Uruguay is the largest Finnish industrial investment abroad. For Uruguay, the project is one of that country’s largest ever foreign investments.
      Mandelson sees the Finnish company as an innocent victim in an international dispute between two sovereign states. He feels that it is unreasonable for a European company to be caught in the middle, especially when such a large investment is involved.
      He also said that if the dispute is not soon resolved, the difficulties could jeopardise future European investments in both Uruguay and Argentina.
     
During his visit to Finland, Mandelson will meet with Foreign Trade minister Lehtomäki, as well as with Prime Minister Matti Vanhanen (Centre). He is also looking forward to the Finnish EU Presidency in the second half of this year, pointing out Finland's economically successes.
      The Commissioner praised Finland’s high competitiveness, creativity, and innovation, combined with its "modern social and economic model".
      "Finland can lead Europe with its example, and show others that they can also implement a working model. However, I am not saying that there would be only one model that could be spread to all of Europe", the Commissioner said.
      Commenting on his only previous visit to Finland as a schoolboy, Mandelson said that he remembers the sunlight, open spaces, and saunas. This time, he says that he will not have time to go to a sauna.
     
On other issues, Mandelson noted that one of the EU’s most important questions for the future is it relationship with China. The EU and China have been at odds over economic issues for some time. Chinese textiles, which have been flooding the EU market, are a special cause for concern.
      The Commissioner says that he expects Finland to promote good relations between the EU and China during the upcoming Finnish EU Presidency.


Previously in HS International Edition:
  Argentine president appeals to Finnish government in pulp mill dispute (20.4.2006)

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