On March 20, 2002, a few days before a visit by US President Bush, a car bomb exploded near the US Embassy in Lima, killing ten people. Nobody has claimed responsibility for the attack, though it was thought to have been carried out by a local militant group. The US and UK governments have issued alerts on the potential for further terrorism in the days surrounding May 17, an anniversary of sorts for local terrorist organizations.

Lima and traditional tourist areas such as Cuzco and Machu Picchu are considered safe, but care should be exercised at all times. Areas where the government is conducting counter-insurgency campaigns have been designated 'emergency areas' and should not be entered. The Upper Huallaga Valley in the Amazon, home to drug barons and Shining Path guerrillas, is definitely off limits. All nationalities should contact their embassy on arrival for a briefing on the security situation, with particular reference to their planned itinerary.

In 1998, Ecuador and Peru negotiated a settlement to their long-running border dispute. Peru retained a majority of the region in question, save for a 247-acre portion known as Tiwintza, a parcel sucessfully defended by Ecuadorian troops in the 1995 skirmishes.

In the wake of Alberto Fujimori's controversial re-election 28 May 2000, the US State Department posted a public announcement warning that political demonstrations are becoming 'larger and more frequent.'