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Cellulose plant conflict

Argentina and Uruguay experienced a conflict over the construction of pulp mills on the Uruguay River. Two European companies, ENCE and Botnia, proposed building cellulose processing plants at Fray Bentos, Uruguay, opposite Gualeguaychú, Argentina. According to a 1975 treaty, Argentina and Uruguay were supposed to jointly agree on matters relating to the Uruguay River. Argentina alleged that Uruguay broke the treaty. Additionally, Argentina believed the Finnish company Botnia was polluting the fish and the overall environment of the river while Uruguay believed that the plant was not depositing a large amount of toxins in the Uruguay River.

Starting in April 2005, residents of Gualeguaychú, as well as many others, protested, claiming that the plants would pollute the river shared by the two countries. Early in 2006, the conflict escalated into a diplomatic crisis, compelling one of the companies move the project 250 kilometres (160 mi) south. Beginning in December 2005, the international bridges linking the Argentine province of Entre Ríos with Uruguay were intermittently blockaded by Argentine protesters, causing major disruptions in commercial traffic and tourism.

In 2006, Argentina brought the dispute before the International Court of Justice. The ICJ completed hearings between Argentina and Uruguay regarding the dispute on October 2, 2009. In 2010, the court ruled that although Uruguay failed to inform Argentina of the construction of the pulp mills, the mills did not pollute the river, so closing the remaining pulp mill would be unjustified. Later in 2010, Argentina and Uruguay created a joint commission to coordinate activities on the river.