Disputes - international:
claims UK-administered Falkland Islands (Islas Malvinas) and South
Georgia and the South Sandwich Islands in its constitution, but in
1995 ceded the right to settle the dispute by force; Beagle Channel
islands dispute resolved through Papal mediation in 1984, but armed
incidents persist since 1992 oil discovery; territorial claim in
Antarctica partially overlaps UK and Chilean claims (see Antarctic
disputes); unruly region at convergence of Argentina-Brazil-Paraguay
borders is locus of money laundering, smuggling, arms and drug
trafficking, and harbors Islamist militants; uncontested dispute
between Brazil and Uruguay over Braziliera Island in the
Quarai/Cuareim leaves the tripoint with Argentina in question
Illicit drugs:
used as a transshipment country for cocaine headed for Europe and
the US; some money-laundering activity, especially in the Tri-Border
Area; domestic consumption of drugs in urban centers is increasing