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‘We said no, no, no, but they kept insisting’: the Paraguayan people battling a eucalyptus empire

By · Via The Guardian Environment · Published by Everything Blog

In short

Backed by international investors and the Inter-American Development Bank, Paracel plans to process 162 million eucalyptus trees into export pulp while promising thousands of local jobs. However, field investigations across 12 communities document severe concerns, including groundwater depletion, forced evictions of local farmers, and the documented use of an insecticide prohibited in the European Union. Indigenous groups also claim that required consultation procedures overrode their explicit rejections of the venture. Paracel has defended its lawful ownership and economic contributions while denying allegations of improper chemical spraying.

Key points

  • Local and Indigenous groups allege their formal land rights and repeated objections were…: Local and Indigenous groups allege their formal land rights and repeated objections were dismissed to advance the massive development.
  • Significant political uncertainty now surrounds the forestry venture following the remova…: Significant political uncertainty now surrounds the forestry venture following the removal and arrest of its key backer, former President Santiago Peña.
  • Serious environmental and health complaints persist regarding water depletion and chemica…: Serious environmental and health complaints persist regarding water depletion and chemical exposure despite company promises of economic growth and jobs.

Sources checked by our analysis pipeline: 1

When Paracel arrived in Tacuarita, an Indigenous community of homes made from planks and plastic sheeting in Paraguay’s poorest region, six years ago, it was a welcome sight. The company improved the dirt roads and dug an electric-powered well, saving villagers a two-mile journey to fetch water from a cattle pond that often made them sick. It also gave dozens of local people forestry jobs.

“They fulfilled all their promises,” says Florencio Garcete, 55, chief of the Mbya Guaraní community of 211 people.

But today, the minimum-wage work often dwindles and the well stops working during power cuts. More worrying are its eucalyptus plantations, which begin less than 200 metres from the community’s crops and homes.

Paracel is made up of the Paraguayan Zapag group, the Austrian pulp producer Heinzel and Swedish forestry company Girindus Investments. The project is expected to be the largest private investment in Paraguay’s history.

The company will reportedly invest about $5bn (£3.7bn) and create 7,000 jobs, mainly in the northern region of Concepción. Financed by the Inter-American Development Bank (IDB) and Paraguay’s government, the company…

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