Uruguay: 106 companies sue State over Plan Vale recycling scheme

A group of 106 importing and manufacturing companies has filed a lawsuit against the Uruguayan State, the Chamber of Industries (CIU), and the Plan Vale trust. The legal action seeks to nullify new clauses that require companies to re-adhere to the recycling program, which is designed to recover non-returnable packaging.

The plaintiffs, which include food and beverage producers, retailers, and automotive companies, argue that the new requirements triple their financial contributions and effectively make them guarantors for a large loan they did not participate in. They have characterized the contract as abusive and illegal, questioning the lack of state oversight regarding the destination of funds.

Minister of Environment Edgardo Ortuño has expressed optimism about reaching a consensus with the Chamber of Industries and the Chamber of Commerce to find a solution that complies with current law. If an agreement is not reached, the existing legislation allows for the recycling mechanism to be replaced by a direct tax, an option some business leaders suggest would be more transparent.