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In 2002 the provincial government of Chubut granted a gold mining concession to Meridian Gold, a Canadian mining company based out of Reno, Nevada, for a large open-pit gold mine just 7 kilometers from Esquel, Argentina. The local population was strongly opposed to this, due to the environmental impact that the mine would have, and decided to protest the action.

Argentina and Uruguay have a history of friendly diplomatic relations, with their countries sharing similar heritages, mutual alliances and significant cultural and political ties. However, following the 2005 announcement of the construction of two paper mills on the Uruguayan side of the Uruguay River (which serves as a boundary between the two countries), Argentina and Uruguay experienced their first significant diplomatic tensions since the 1970s.