LIST OF NEOCOLONIAL PRIVILEGES THAT URUGUAY OFFERED TO UPM (GLOBAL PULP COMPANY BASED IN HELSINKI) in 2017

By Andrés Núñez Leites

You can listen to the AUDIO here.



· The State is committed to making a huge public investment, but the company reserves the right not to make its investment.

· Only one party, UPM, has the investment options.

· Uruguay is not assured of benefits, despite its enormous investment in the project (USD 4 billion).

· The Uruguayan State resigns its own administrative organization and is obliged to have a stable official as a “contact” with UPM within the environmental authority, DINAMA (a true omen of business co-optation).

· The Uruguayan State freezes its fiscal capacity in favor of UPM.

· The Uruguayan State is obliged to comply with impossible deadlines (however short) in the environmental impact evaluations of the UPM project, becoming a theatrical State that issues express environmental authorizations.

· UPM is committed to using the "Best available technologies" but in terms of greater profitability in the market.

· The State does not control UPM's environmental damage; Negotiate with the company how to deal with damages.

· Freezing of Environmental Law: no modification in areas of post-contract environmental protection affects the company.

· Flexible limit to the emission of phosphorus (main precursor of cyanobacteria). The current standard becomes negotiable, that is, Uruguay repeals the standard in favor of the company.

· The state reports periodically to UPM on the progress of the infrastructure preparation works that it committed to carry out.

· The traffic flow of the country's capital is subject to the requirements of UPM: the road and port works in Montevideo in favor of UPM are above the travel needs of citizens and local companies.

· The State's educational policy is subject to the will and control of UPM, which will approve UTU programs in the forestry area.

· UPM will be a source of Labor Law: the agreements with the State and the union center (PITCNT) are incorporated into national legislation.

· UPM forestry operations protected with ridiculous environmental evaluation deadlines (express authorizations).

· For UPM contractors, everything: credit with a subsidy for access to housing, health services, care, and education that are priorities for them over the local population.

· Training institutions created to provide technical support to UPM will have public-private <<governance>> and will not be state-owned or local private.

· Inequity and total vassalage: even if Uruguay fully complies with its commitments, UPM reserves the right to the final investment decision (DFI)...

· The State renounces its jurisdiction over UPM: conflicts between the State and the company will be resolved in international organizations.


Sources:


ROU/UPM Contract: https://medios.presidencia.gub.uy/tav_portal/2017/noticias/NO_Y823/contrato_final.pdf

My own outreach work on the topic, with quotes from the contract: https://drive.google.com/file/d/1krG5ew0WFzsezhUv2dcjmBAsy1IrJU-f/view?usp=sharing

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