The pulp mill dispute was a dispute between Argentina and Uruguay concerning the construction of pulp mills on the Uruguay River. The presidents at the time were Néstor Kirchner (Argentina) and Tabaré Vázquez (Uruguay). As a diplomatic, economic, and public relations conflict between both parties, the dispute also affected tourism and transportation as well as the otherwise amicable relations between the two countries. The feud was unprecedented between the two countries, which have shared historical and cultural ties. Proceedings were brought before the International Court of Justice as a case formally named Pulp Mills on the River Uruguay (Argentina v. Uruguay). It ruled that, although Uruguay failed to inform Argentina of the operations, it did not pollute the river, so closing the pulp mill would be unjustified. The conflict ended in 2010, during the presidencies of Cristina Fernández de Kirchner (Argentina) and José Mujica (Uruguay), with the establishment of a joint coordination of the activities in the river.
Origin of the dispute After twenty years of forest industry development, in October 2003, the Spanish company ENCE, received permission from the Uruguayan government to build a pulp mill in Fray Bentos, on the Uruguay River (which forms the natural border north between Brazil and Argentina and in the south between Uruguay and Argentina). Argentines residing mainly in Gualeguaychú, Entre Ríos, about 35 km from Fray Bentos, had been concerned that ENCE's pulp mill would pollute the river. Also, some demonstrations had been organized against ENCE. After ENCE received its permit, another company, the Finnish Botnia, made public their intention to consider the same area for another pulp mill. Botnia received the environmental authorization to build a mill in February 2005. The Uruguay River is shared by the two countries and is protected by a treaty, which requires both parties to inform the other of any project that might affect the river. Besides the issue of pollution, Argentina claimed that the Uruguayan government had not asked for permission to build the mills. Uruguayan authorities countered that the Treaty did not require that permission be obtained, but merely that the other part be appropriately informed, and that conversations had indeed been held and filed, without objections on the Argentine part. In addition, they claimed that the technology used in the mills would avoid polluting the river to the extent claimed by the Argentine government, and that more modern wastewater treatment would have a beneficial effect when used for local sewage treatment as well. Before the construction of the mill, sewage from the city of Fray Bentos was discharged to the river untreated. These claims were backed by neutral expert statements given to the IFC.
The first protests
On 30 April 2005, just two months after President Vazquez and his government took power in Uruguay, and two months after the mills were publicly approved, a large group of 10,000–20,000 people (residents of Gualeguaychú and nearby, as well as environmental groups from Argentina) blocked the international Libertador General San Martín Bridge (between Gualeguaychú and Fray Bentos) protesting the installation of the pulp mills. The demonstrations were organized by the Environmental Assembly of Gualeguaychú with the goal of bringing attention to possible negative effects that the mills could have on the environment. The people who participated in the demonstrations hoped that by bringing attention to the conflict, the construction of the mills would be interrupted. If this was not feasible, they hoped, at the very least, that the actions taken by the mills would be improved such that the environment, specifically the river, would not be negatively affected. Demonstrators did not allow any cars to get through to the bridge. The only vehicles that could drive through it were cars and trucks from farms, as well as Uruguayans who regularly shopped in Argentina (due good exchange rates). However, these Uruguayans would have to park their vehicles near the roadblock and walk through the demonstration and people before they could get in a rental car that drove them to the markets. Protesters agreed that Uruguayan shoppers were allowed to walk through the demonstration safely and without maltreatment. Furthermore, their vehicles were not attacked. In September 2005, the Center for Human Rights and Environment (CEDHA) filed a complaint to the Compliance Advisory Ombudsman (CAO) of the World Bank (which oversees IFC project compliance with social and environmental norms). The CAO eventually released two reports, a preliminary report and an audit. The audit report was critical of the procedures the IFC followed pertaining to the project. A draft cumulative impact study of the two mills by the International Finance Corporation (IFC) of the World Bank was released on 19 December. According to it, the technical requirements of the mills had been fulfilled and the quality of the water and the air in the region should not be harmed. The IFC said it would wait for further consultations to be made before finalizing the study and thus before financing the projects. On 23 December, about 50 Gualeguaychú residents again blocked Route 136 and the General San Martín Bridge, using rubble, logs and vehicles. The block, slated for 8 a.m., started at 5 a.m., angering many drivers who were forced to take a detour to the next bridge, which goes from Colón to Paysandú. Later this bridge was blocked as well. Many Argentines usually travel to Uruguay in the summer, often beginning immediately before Christmas.
Legal and diplomatic escalation
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