Argentina-Uruguay dispute deepens

The mill is being built by a Finnish company close to the Uruguay River

Argentina has reportedly accused Uruguay of diverting attention from environmental issues, in a dispute over a pulp mill project near the border.

The claim came in a letter from Foreign Minister Jorge Taiana to the Uruguayan ambassador, Francisco Bustillo, quoted by Efe news agency.

Argentine protesters say the Uruguayan mills will pollute the Uruguay river, and have blocked border bridges.

Uruguay has protested, saying the protests are harming its economy.

On Tuesday, the World Bank approved more than $500m (£259m) in loans for the project.

In his letter, Mr Taiana says that "despite Argentine protests, it is disappointing to find a repeated intention to divert attention from the main issue which started the controversy".

Wave of protests

Argentina's objections to the pulp mill have risked a diplomatic rift between the two countries after Buenos Aires took the issue to the International Court of Justice, the Hague tribunal which arbitrates cross-border issues between countries.

The court ruled in July that the project could go ahead, and the World Bank has said the plant meets its environmental standards.

EcoMetrix, the Canadian company that conducted the World Bank environmental impact study, wrote that emissions from the mill would be "well below" accepted levels and that local industries were unlikely to face long-term problems.

Argentina's Environment Secretary, Romina Picolotti, has rejected the World Bank report but has also criticised the protesters, saying they could harm the government's attempts to resolve the issue diplomatically.

Uruguay claims an earlier round of demonstrations over the plant cost the country $200m in lost tourism and trade.

The wave of protests against the project has already caused Ence, the Spanish company that was developing one of two pulp mills for the site, to relocate its project elsewhere in Uruguay.

But the mill being built by Finnish company Botnia is still going ahead.

The Uruguay river is shared by both countries.