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Mercosur parliament starts on sour note

14 Dec 2006 21:57:13 GMT
Source: Reuters

BRASILIA, Brazil, Dec 14 (Reuters) - A spat over a wood pulp plant on Thursday threatened to sour the first parliamentary meeting of Mercosur, a South American trade bloc whose progress has been slowed by bickering among its members.

Members of the trade bloc -- made up of Argentina, Brazil, Uruguay, Paraguay and Venezuela -- met in Brazil's Senate for the opening session of a Mercosur parliament that should have 18 representatives from each country by 2010.

But shortly after the opening session, Uruguay said it would file a complaint against Argentina in Mercosur's high council for failing to stop environmental protests against a wood pulp plant being built in Uruguay by Finland's Botnia <UPM1V.HE> <MRLBV.HE>.

Argentina residents have blocked a main bridge leading to Uruguay during many weekends this year to protest the construction of the $1 billion pulp plant due to concerns about contamination and the plant's impact on tourism and fishing.

"The blockade violates the Treaty of Asuncion because it impedes the free circulation of goods, people and productive factors," Uruguay's Foreign Minister Reinaldo Gargano on the sidelines of the event.

Mercosur was created by the Treaty of Asuncion in 1991, but members have been slow to build a united political front and frequent spats have interrupted progress on regional trade.

Foreign ministers, finance ministers and central bankers from Mercosur member nations will meet in Brasilia on Friday.

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Last updated:Wed Jan 3 20:08:13 2007