Chile and Peru rebuff Bolivia's reactivated claim to restore the Atacama corridor, ceded to Chile in 1884, but Chile offers instead unrestricted but not sovereign maritime access through Chile for Bolivian products; contraband smuggling, human trafficking, and illegal narcotic trafficking are problems in the porous areas of its border regions with all of its neighbors (Argentina, Brazil, Chile, Paraguay, and Peru)
uncontested boundary dispute between Brazil and Uruguay over Braziliera/Brasiliera Island in the Quarai/Cuareim River leaves the tripoint with Argentina in question; smuggling of firearms and narcotics continues to be an issue along the Uruguay-Brazil border; Colombian-organized illegal narcotics and paramilitary activities penetrate Brazil's border region with Venezuela
Illicit drugs
world's third-largest cultivator of coca (after Colombia and Peru) with an estimated 37,500 hectares under cultivation in 2016, a 3 percent increase over 2015; third largest producer of cocaine, estimated at 275 metric tons potential pure cocaine in 2016; transit country for Peruvian and Colombian cocaine destined for Brazil, Argentina, Chile, Paraguay, and Europe; weak border controls; some money-laundering activity related to narcotics trade; major cocaine consumption
second-largest consumer of cocaine in the world; illicit producer of cannabis; trace amounts of coca cultivation in the Amazon region, used for domestic consumption; government has a large-scale eradication program to control cannabis; important transshipment country for Bolivian, Colombian, and Peruvian cocaine headed for Europe; also used by traffickers as a way station for narcotics air transshipments between Peru and Colombia; upsurge in drug-related violence and weapons smuggling; important market for Colombian, Bolivian, and Peruvian cocaine; illicit narcotics proceeds are often laundered through the financial system; significant illicit financial activity in the Tri-Border Area
