Weekly Report - 09 November 2017 (WR-17-44)

After 17 months of intense negotiations, the Uruguayan government led by President Tabaré Vázquez has signed a framework agreement with UPM, setting out the terms under which the Finnish firm will build a new US$4bn pulp mill. Described by Uruguayan government officials as the “the biggest fish that we have ever landed”, the deal means that the country’s largest-ever foreign investment project is close to becoming a reality. The Vázquez administration hopes that this will provide a big fillip for the domestic economy in the run-up to the 2019 general election. However, there are still questions over whether the terms of the deal agreed by the government with UPM are in Uruguay’s best interests.