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World's third-largest cultivator of coca (after Colombia and Peru) with an estimated 28,450 hectares under cultivation in June 2003, a 23% increase from June 2002; intermediate coca products and cocaine exported mostly to or through Brazil, Argentina, and Chile to European and US drug markets; eradication and alternative crop programs under the MESA administration have been unable to keep pace with farmers' attempts to increase cultivation; money-laundering activity related to narcotics trade, especially along the borders with Brazil and Paraguay.
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