Disputes - international:
Bolivia continues to press Chile and Peru to restore the Atacama
corridor ceded to Chile in 1884; dispute with Peru over the economic
zone delimited by the maritime boundary; Chile demands water rights
to Bolivia's Rio Lauca and Silala Spring; Beagle Channel islands
dispute resolved through Papal mediation in 1984, but armed
incidents persist since 1992 oil discovery; territorial claim in
Antarctica (Chilean Antarctic Territory) partially overlaps
Argentine and British claims
Illicit drugs:
a growing transshipment country for cocaine destined for the US and
Europe; economic prosperity and increasing trade have made Chile
more attractive to traffickers seeking to launder drug profits,
especially through the Iquique Free Trade Zone; imported precursors
passed on to Bolivia; domestic cocaine consumption is rising