Uruguay industrial dispute over Plan Vale recycling

In Uruguay, industrial sectors are challenging the implementation of ‘Plan Vale’, a program designed to ensure producers finance and organize the recovery of materials such as plastic, metal, glass, and cardboard.

Initially, paper and cardboard manufacturers requested specific regulations from the Ministry of Environment. The Association of Paper Manufacturers argued that current rules treat different materials under the same category and warned that existing costs could jeopardize businesses, noting that the sector already recycles approximately 60,000 tons of cardboard annually.

The situation escalated as 106 importing and manufacturing companies filed a lawsuit against the Uruguayan State, the Chamber of Industries (CIU), and the Plan Vale trust. The plaintiffs, including food, beverage, and automotive companies, seek to nullify new clauses requiring re-adherence to the program. They argue these requirements triple financial contributions and act as an illegal guarantee for a loan they did not participate in, describing the contract as ‘abusive’.

Environment Minister Edgardo Ortuño has expressed optimism regarding a consensus with industry chambers. If no agreement is reached, legislation allows the recycling mechanism to be replaced by a direct tax, a move some business leaders suggest would offer more transparency.