Economy / Chile
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A New Alliance
October 2007 | Risk SummarySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Cooperation between Chilie and Peru has improved recently, with a renewed diplomatic drive helping to alleviate the tensions which have built up between the countries over a long-standing maritime border dispute. President Michelle Bachelet and Peruvian counterpart Alan García are in discussions to develop a political and economic alliance that will aim to tackle social inequality and strengthen co-operation with Asia. Although in its elementary stages, the pact is a positive step towards improving social stability in Chile, as well as stabilising bilateral relations with Peru.