Disputes - international:
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 with Uruguay
over certain islands in the Quarai/Cuareim and Invernada boundary
streams and the resulting tripoint with Argentina
Illicit drugs:
illicit producer of cannabis; minor coca cultivation in the Amazon
region, used for domestic consumption; government has a large-scale
eradication program to control cannabis; important transshipment
country for Colombian and Peruvian cocaine headed for the US and
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 earned in
Brazil are often laundered through the financial system; significant
illicit financial activity in the Tri-Border Area