No solution to pulp mill dispute at EU-Latin America summit

Summit bears witness to stiff protest against Finnish pulp mill project

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The European Union and the Latin American summit in Vienna failed to bring a solution to the dispute over the Finnish forestry company Metsä-Botnia's plans to set up a pulp mill in Uruguay, close to the Argentine border.
      Argentina has objected strongly to the undertaking in Fray Bentos on the Uruguay River, which forms the frontier between the two countries. The EUR 1,000 million industrial investment overseas is the largest of its kind in Finnish history.
     
On Friday, Uruguay and Argentina were left to work out the dispute between themselves. The former colonial power Spain announced that it would not intervene in the spat unless asked to act as a conciliator.
      Argentina has announced earlier that it would bring the dispute before the International Court of Justice in The Hague.
      In Vienna, the President of Finland Tarja Halonen met with the President of Uruguay Tabare Vazquez, who said that his country would honour the international treaties and environmental norms. At least by Friday evening, Halonen had not yet negotiated with the opposing side, the Argentine President Nestor Kirchner.
      According to Halonen, many of the Latin American countries have taken a positive stand towards the construction of the pulp mill. Halonen was of the opinion that the problems encountered by Metsä-Botnia might have far-reaching consequences to many of the South American states.
      "I have tried to point out that the dispute may have a negative impact on the whole region", Halonen explained.
     
The pulp mill dispute took a surprise turn on Friday, when the Argentine samba queen and environmental activist Evangelina Carrozo suddenly appeared dressed in just a bikini and a pair of boots in front of the astounded heads of state, who were posing for a group photo. Carrying a large placard, Evangelina started protesting against the mill.
      "No pulpmill pollution", spelled the protester's sign. Apparently she had sneaked in posing as a journalist wearing a long coat.
      "The Uruguay government should not lie to people. These factories pollute", Carrozo had said, news agency AP later reported.
      At least the Venezuelan leftist President Hugo Chávez did not seem to mind the interlude. "It was one of the best things that happened in this summit", he said.
     
In addition to the pulp mill dispute, Bolivia's plans to nationalise the country's energy companies have been another cause for palpitations within the EU. Reportedly Venezuela's Chávez has similar plans for his country.
      The British Prime Minister Tony Blair and the United Nations Secretary General Kofi Annan appealed to the Latin American nations from making populist decisions at the expense of the foreign energy companies.
      According to Annan, the region's economies will be put at risk if investors cannot rely on the stability of the long-term conditions in the area.


Previously in HS International Edition:
  President Halonen wants to discuss pulp mill dispute at EU-Latin America summit (12.5.2006)

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