That is one reason why in April Metsa-Botnia, a Finnish company, began building a cellulose plant on the Uruguay River bordering Argentina.
The Finnish company Botnia, which is building the factory on the bank of the Uruguay River that separates the two countries, says it will be perfectly safe.
Argentina lodged a complaint before the International Court of Justice (ICJ) in 2006, arguing that Uruguay had broken the terms of a 1975 treaty regulating the use of the River Uruguay which forms the border between them.
The accord sets up a scientific committee composed of experts from both nations which will monitor the pollution levels in the River Uruguay and within the mill.
The pulp mill, which opened in 2007, is located in the Uruguayan town of Fray Bentos on the banks of the River Uruguay which forms the border between the two South American nations.
Argentina argued the mill polluted the river, while Uruguay said strict environmental codes were followed.
One bitter dispute involves Argentina's environmental objections to a big new paper mill on Uruguay's bank of the river that divides them.
ECONOMIST: An undiplomatic row highlights a lack of consensus
Even tiny Uruguay now exports more beef than its neighbour across the River Plate thanks partly to big investments by Argentines who like its commitment to the rule of law.
Uruguay is firmly behind the project, but residents on the Argentine side of the river, backed by international environmentalists, say the plant will pollute the river.
The erection of the two giant cellulose factories on the Uruguayan side of the river dividing the two countries looked set to proceed after two court rulings in Uruguay's favour.
Argentina's government complains that Uruguay did not consult it about the plants, which, it says, will pollute the river, over which the two countries share sovereignty.
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