ASSESSMENTS

Sparks Fly Between Chile and Peru

Feb 19, 2018 | 09:00 GMT

A map of South America shows the long-disputed borders between Chile and Peru.

A map of South America shows the long-disputed borders between Chile and Peru. With a somewhat satisfactory resolution to their border disputes, the two countries are deepening their ties.

(BEYHAN YAZAR/iStock)

Highlights

  • Chile's relationship with Peru has improved since 2014, when the International Court of Justice issued a final ruling over their territorial dispute. That trend will continue this year as both countries prepare to connect their electricity systems.
  • Chile's need to increase the electricity supply to its growing lithium industry will play a key role in the drive for energy integration projects with Peru.
  • Chile's recently elected president, Sebastian Pinera, will assume office in March and is likely to continue pursuing this trend.

Relations between Peru and Chile have historically been some of the most troubled in South America, but the past few years have brought a new energy to the relationship. On Feb. 6, Chilean Minister of Energy Andres Rebolledo confirmed that the two countries will begin construction this year on a 30-mile electricity transmission line connecting them. The line could be completed by the end of 2019. The announcement is a sign that both countries have decided to leave their historic animosity behind and that deeper integration between them will likely continue in the coming year....

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