Disputes—international: on October 26, 1998, Peru and Ecuador concluded treaties on commerce and navigation and on boundary integration, to complete a package of agreements settling the long-standing boundary dispute between them; demarcation of the agreed-upon boundary was scheduled to begin in mid-January 1999

Illicit drugs: significant transit country for derivatives of coca originating in Colombia, Bolivia, and Peru; importer of precursor chemicals used in production of illicit narcotics; important money-laundering hub