Disputes - international:
OAS-initiated Agreement on the Framework for Negotiations and Confidence Building Measures saw cooperation in repatriation of Guatemalan squatters and other areas, but Guatemalan land and maritime claims in Belize and the Caribbean Sea remain unresolved; the Line of Adjacency created under the 2002 Differendum serves in lieu of the contiguous international boundary to control squatting in the sparsely inhabited rain forests of Belize's border region; Honduras claims Belizean-administered Sapodilla Cays in its constitution but agreed to a joint ecological park under the Differendum

Illicit drugs:
transshipment point for cocaine; small-scale illicit producer of cannabis, primarily for local consumption; offshore sector money-laundering activity related to narcotics trafficking and other crimes (2008)