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In 1984, Argentina and Chile signed the so-called Treaty of Peace and Friendship, which ended a decades-long dispute over the sovereignty of the southernmost islands and waters of Latin-America. This agreement, which resulted through papal mediation, achieved what earlier intents did not: a definite stop to military and diplomatic threats and a clear definition of the course of the border that divides both national territories. This essay reconstructs the genesis of the Treaty and explores its impacts today. Finally, it explores why the 1984 Treaty still determines border politics in the southern region of both nations in spite of a changed political scenario.