Disputes - international: in Jan 2007, ICJ provisionally ruled Uruguay may begin construction of two paper mills on the Uruguay River, which forms the border with Argentina, while the court examines further whether Argentina has the legal right to stop such construction with potential environmental implications to both countries; uncontested dispute with Brazil over certain islands in the Quarai/Cuareim and Invernada streams and the resulting tripoint with Argentina
Illicit drugs: small-scale transit country for drugs mainly bound for Europe, often through sea-borne containers; law enforcement corruption; money laundering because of strict banking secrecy laws; weak border control along Brazilian frontier; increasing consumption of cocaine base and synthetic drugs