Argentina has said it would take Uruguay to the International Court of Justice over Uruguay's approval to boost production at a Finnish-owned paper pulp plant on the countries' border.
Argentina is concerned about potential environmental fallout in the river.
"Uruguay's unilateral decision leaves our country compelled to appeal to The Hague," Foreign Minister Hector Timerman said yesterday at the Government House.
The plant, owned by UPM (formerly Botnia) is located in Uruguay, on the Uruguay River between the South American nations.
Uruguayan President Jose Mujica has given a green light for the plant to boost its production from 1.1 million tonnes a year to 1.3 million tonnes.
Mujica said he authorised, within his rights, an increase that was half of what the company requested. The plant makes paper from eucalyptus pulp.
