Created: 2/1/1999

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Intelligence Report

Office of Asian Pacific and Loan American Analysis Peru-Ecuador: Elements of8 Peace Accord


four years after their border dispute last erupted into armed conflict, Lima and Quitolobal peace accord onhe comprehensive pact was the culmination of intensive talks under the auspices of the Rio Protocol GuarantorBrazil, Chile, and the Unitedyielded treaties and agreements in tbe areas of border demarcation, Ecuador's demand for access to the Amazon River, border integration, and confidence- and security-building measures. Demarcation of the border is currently under way and must be completed before the global accord goes into effect Tbe two countries plan to complete demarcation by this April, although this timetable may be overly optimistic given that die two parties must first clear the border areas of mines.


Border Demarcation

The demarcation of three segments of the disputed border was resolved largely in accordance with2 Rio Protocol and associated arbitral awards and opinions:

Ecuador and Peru accepted demarcation recommendatiorjs made in8 by guarantor country technical experts in the Lagartococha-Guepi (A, see map) and Santiago-Yaupioincided almost entirely with Pern's claims.

Quito rejected the experts' opinions on demarcation in the Cenepa valleye scene of the fighting5 and the most contentious andsymbolic area Following months of stalemate, the two sidesuarantor proposalolitical compromise inhis agreement defines the border according to Peru's longstanding claims but awardsquare kilometer of private property around the military outpost of Thvinza, which Ecuador claims to have held in5 conflict The former disputants agreed to create adjoiningparks along the new border, and Peru agreed tooadTiwinza to Ecuadorian territory.

Oneruvian President Fujimori and Ecuadorian President Mahuad presidederemony to celebrate completion of die demarcation ofartococha-Guepi region. The Presidents have solicited assistance from the United States and other countries in clcanng the Sana"ago-Yaupi and Ceneparegions of landmines. Mines emplaccd during and after5 conflict must be removed at least from the areas immediately around prospective border stones before demarcation can occur.

Treaty of Commerce and Navigation

The Commerce and Navigation Treaty addresses Ecuador's longstanding demand for access to the Amazon River. The treaty requires Ecuador and Peru to grant reciprocal most-favored-nation tradeeach to grant the other any benefits orenjoyed by any otherinational commission to implement its terms and resolve any disputes regarding the following conditions:

Ecuadorian-flaggedthe right of free, untaxed, and perpetual navigation of tbe Amazon River and its tributaries. Ecuador also enjoys the right to transit public roads between its tern lory and these riven, as well as tbe use of port faculties.

Ecuador has the right to developyear renewable"Navigation and Commercer export-processing sites, at locations that the two parties will choose jointly of no lessO5 acres) near Amazonian tributaries. Ecuador willrivate enterprise to run the facilities. The centers will be subject to Peruvian law, but most Ecuadorian trade conducted through the sites will be nontaxable by Pera]



Sign warnsnines ouTSde pwlrmtor Curt ml Wro al Ecuadsr's Coargosadflfllrm lo irtnos sound outpoota, fxxeendscf mnnn its pi nrjht to bn Utd on jungle Bob tt 5ie border

The Ml Ittery OQscrvor Mission Ecuador Pemormed by Oieb itinerary Accord, is Basod at Panics. Ecuaflor. AboutS miliary personnel anQlOcWlllans (rietlDoctor technicians) sejvtt withracllan. Argon lino, Chilean. Peruvian, and Ecuad vian personnel In BOMEP.


Border Integration, Development, and Neighborly Relations]

The Agreement on Border Integration, Development, and Neighborly Relations commits Peru and Ecuador to pursue cooperationariety of issues, including calls for them to:

Integrate and improve their electricity, transportation,and other infrastructures in the border region.

Collaborate on public health and sanitation programs, ardicrimc and counternarcotics efforts, environmental protection and sustainableamelioration of living standards for indigenous communities, and natural disaster prevention and response.

Open three new border crossings to supplement the current two and simplify regulations for the transit of people and vehicles between the two countries.

Phase-in reduced tariffs on most products with virtuallyxcept for those products slated for liberalization within the Andean Conimimity

Quito and Lima also agreedlueprint for several bilateral commissions tothese plans, including the Buxational Fund for Peace and Development, to solicit grants from foreign governments and international organizations, and to distribute funds for regional development.

Confidence- and Security-Building Measures

The agreement on Confidence- and Security-Butlding Measures calls for the creation of abinational commission composed of one flag officer from each of the three branches of the armed services of each country and one ambassador-rank representative from each Foreign Ministry. The commission will begin meeting withinays after the global accord enters into effect and will hold regular meetings on civilian and militaryand development I-

AMiough the treaty coes not specify which Amazon tributaries Ecuador may use. the Napo. Curaray. Tige, Pastaze. Monna. Sendeto. and Menwon rivers are altich Ecuador could dam netfaw^ rfriti. The Cemrrere and

center in that melon."

mbos Rmjt fcmjspoc and hydroetectnc dam prefect.

Q Seem and inHasguetuns oavetotJiiiem of Tumbas and laachaia.

^) IrnpLemantBuon of tha accord on 'Admtniwauon of tne ZerumDa Canal and Use of tehich requires Potu and Ecuador to rerrabfttats and/or reconstnjct the canal and trrieatkm and flood control facHrties associated with tha canal and the ZarumMa River.

O Pastaa River Basin reforestation Project.

0 Connection of Ecuadorian and Peruvian oil pipelines (not Pan-American Highway and Costaneni Highway hnorovement project

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