Country Report Peru May 2000 Updater

Political outlook: International relations

Peru risks domestic instability and international isolation, with heavy economic costs, if concerns expressed by the US, the EU and Japan over the conduct of elections are not dealt with. The US president, Bill Clinton, has signed a congressional resolution stating that the US will review its economic, political and military relations with Peru if international observers conclude that the electoral process in the second round is not free and fair. A repeat of the first round's controversies could be disastrous for Peru's international relations, which are already strained. The EIU's economic forecast assumes that no sanctions will be imposed following the second round, but there is a very real risk that the election will not go smoothly.

© 2000 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information