THE HAGUE, Netherlands—Uruguay denied Argentina’s claims at the United Nations’ highest court that a pulp mill on a river separating the two countries is polluting the air and water, saying Monday it meets environmental protection standards.

Argentina argued last week at the World Court that Uruguay breached a 1975 treaty by authorizing construction of the mill on the River Uruguay without consulting its neighbor.

It wants the court to order Uruguay to pay unspecified compensation.

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