Disputes—international: two short sections of boundary with Uruguay are in dispute—Arroio Invernada (Arroyo de la Invernada) area of the Rio Quarai (Rio Cuareim) and the islands at the confluence of the Rio Quarai and the Uruguay River

Illicit drugs: limited illicit producer of cannabis, minor coca cultivation in the Amazon region, mostly 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 the US and Europe; increasingly used by traffickers as a way station for narcotics air transshipments between Peru and Colombia