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Sino-Forest, a big forestry firm listed in Toronto, is a case in point.
Concerns about fraud among Chinese companies listed in North America gained more traction on June 2nd, when a short-seller of that name accused Sino-Forest Corporation, a Toronto-listed forestry firm, of inflating its assets, among other things.
So he spoke to Arauco, a major forestry firm that employs thousands of workers in Constitución, and to his friend and former colleague Alejandro Aravena, an architect at Elemental, which specialises in social housing projects.
The 2003 decision of Finnish forestry firm UPM to locate a $1.2bn pulp mill on the banks of the Rio Uruguay, meanwhile, led to a prolonged diplomatic spat between neighbours Argentina and Uruguay over pollution claims.
The forestry industry, which accounts for around 8% of exports and is centred in the worst-hit regions, may be shut down for at least a month because of damage to factories and to transport links, says Charles Kimber of Arauco, a big forestry firm.
Take Sino Forest, a forestry firm listed in Canada, whose shares slumped from C$25.30 ($26) in March to as low as C$1.99 in June after a research outfit questioned its accounts (Sino Forest has denied the claims and has commissioned a review by an independent committee).A sharp fall in a company's share price after allegations of deceptive accounting is hardly unexpected, except perhaps in China.
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International banks, at any rate, are beginning to grasp the risks of relationships with poorly regulated forestry firms.
And as in Brazil, property rights in the forests are often ill-defined, leading to violent conflicts between locals, migrants and forestry firms.
Conservationists believe beavers will help create a healthier and more varied habitat, but the proposals are likely to be opposed by local farmers, forestry firms and salmon fisheries.
Though the science is evolving, it is clear that agribusinesses, forestry firms and others who can keep greenhouse gases from entering the atmosphere could profit handsomely from the Kyoto deal.
This has kept domestic timber prices below world levels, providing forestry firms with an implicit subsidy estimated at over $2 billion a year, but also encouraging them to use logs inefficiently.
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