President Halonen wants to discuss pulp mill dispute at EU-Latin America summit

Deep disagreements emerge at Vienna meeting

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President Tarja Halonen hopes to discuss the dispute between Argentina and Uruguay concerning the construction of a pulp mill by the Finnish company Metsä-Botnia in Uruguay. The mill is being built in Fray Bentos on the Uruguay River, which forms the border between the two countries. The project has raised anger in Argentina, where there are fears of negative environmental consequences.
      Halonen said on Thursday that she wants to talk about the issue on Friday at a meeting with Uruguay’s President Tabare Vazquez. It remained uncertain on Thursday evening if a meeting could be arranged with Argentine President Nestor Kirchner.
      "Let’s at least listen to what they have to say", is how the President’s office described the expectations.
      Also taking part in the summit was Finland’s Minister for Foreign Trade Paula Lehtomäki (Centre), who admitted that the disagreements could have negative consequences.
      "Companies in the European Union are looking at the disputes through a magnifying glass, Lehtomäki said.
     
The atmosphere at the summit has been somewhat tense. Bolivia’s new leftist President Evo Morales took the opportunity to sharply defend plans to nationalise his country’s energy companies.
      Speaking at a press conference on Friday, he said that his country’s resources had been "robbed for more than 500 years".
      The nationalisation plans have raised concern in the EU, as the French company Total, as well as British Gas have invested heavily in Bolivia. At the beginning of this month Morales demanded that foreign companies renegotiate their contracts or leave the country.
     
There are also issues with Venezuela and Argentina. Venezuela plans to impose heavy taxes on foreign oil companies, and Argentina has its issues with pulp mill construction in Uruguay by both Metsä-Botnia and the Spanish company Ence.
      European Commission President José Manuel Barroso sees the talks in Vienna as a unique opportunity to improve relations between the EU and Latin America. Trade Commissioner Peter Mandelson has hinted that EU investments in Latin America could suffer considerably if companies based in EU member states are not treated better.


Previously in HS International Edition:
  Argentina to bring pulp mill dispute before Hague court (5.5.2006)
  Lehtomäki leaves for South America, explains cancellation of Argentina visit (25.4.2006)
  European Union backs Metsä-Botnia in pulp mill dispute with Argentina (21.4.2006)

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