Disputes—international: on 26 October 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: until recently the world's largest coca leaf producer, Peru has reduced the area of coca under cultivation by 26%, from 68,800 hectares in 1997 to 51,000 hectares at the end of 1998; most of cocaine base is shipped to neighboring Colombia and Brazil for processing into cocaine for the international drug market, but exports of finished cocaine are increasing