Thursday, January 30, 2014

Peru x Chile: Struggle for the High Seas

The International Court of Justice in The Hague’s decision this week (01/27/14) regarding the maritime line of demarcation between Peruvian and Chilean waters generated high spirits in Lima and clenched teeth in Santiago. The Court’s findings actually balanced tradition – in the form of historical practices and signed treaties – with a perceived need to adjust to modern realities.

For the last few hundred years, the territorial waters recognized for the two countries have been in dispute, especially since the War of the Pacific (1879-84). Chile’s advances in that war also left Bolivia a landlocked nation. According to the Menas Border blog (www.menasborders.com), Chile considered the matter of the maritime border with Peru definitively settled after two treaties in 1952 and 1954 that addressed fishing rights in the Pacific Ocean. Chile claimed territorial waters along a latitudinal parallel originating at the established international land boundary. Peru claimed maritime territory along a south-westerly line extending from the international border essentially perpendicular and equidistant from their coastline.


The progressive nature of the decision attempts to address knowledge regarding the value of natural resources that did not exist at the time of the treaties, and conform to more recent traditions of equidistant maritime demarcation. Conversely, Chilean critics see the findings as undermining the necessary stability inherent in international accords, and lament the impending loss in revenue from fishing rights.

Importantly, Chile’s president, Sebastián Piñera, expressed his strong disagreement with the court’s finding but assured that Chile would abide by the ruling. This is no small development given the long history of the dispute. Writing for Reuters, Thomas Escritt and Rosalba O'Brien projected that the decision would ultimately strengthen relations between Chile and Peru, whose growing bilateral trade reached US$ 3 billion last year.1 Robert Kozak and Ryan Dube reported in The Wall Street Journal that tensions have been higher lately, especially among Peruvians living in Chile. They cite Michael Shifter, president of U.S.-based think tank Inter-American Dialogue, who said, "The loss of quite a bit of ocean territory will not go down easily with many Chileans."2 However, the article indicates that Shifter as well as analysts from the Eurasia Group do not believe that there will be lasting negative effects from the finding but tend to agree with the assessment that the settlement will lead to better economic stability.

The new demarcation line runs along the parallel recognized by Chile for 80 miles, and then veers southwest to the 200-mile boundary of international waters. This confusing arrangement transfers some 8,000 square miles from Chilean to Peruvian territory, nevertheless preserving much of the most strategic fishing regions for Chile. Ultimately, the court opted for a compromise between the two claims, reaching a settlement that the court clearly hopes will finally bring to a close the dispute. A century ago in Latin America a conflict like would have been resolved by armies and navies. The present outcome is indicative of the region’s political and economic development.




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