Challenges emerge for Uruguay's recovery.

Market Latin America | May 1, 2006 | Copyright

The most widely covered current news from Uruguay focuses on a dispute between Argentina and Uruguay over the construction of two European Union (EU) financed paper mills. The plants are to be built on the Uruguay River, which delineates the border between Uruguay and Argentina.

Paper mills have a long-standing bad reputation when it comes to impact on the environment. And on the Argentine side of the river, concern over paper mill pollution and a loss of jobs and tourism recently boiled over into protest with the Argentinians blocking an international bridge.

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