Throughout the 1980s, Central America was wracked by conflict. El Salvador faced a guerrilla insurgency, Guatemala’s long conflict festered, and Nicaragua faced a continually escalating U.S.-led proxy war that used fighters, loosely referred to as the Contras, to wage war on the Nicaraguan government through cross-border raids that implicated Costa Rica and Honduras in persistent violations of sovereignty. The Treaty of Esquipulas, spearheaded by Costa Rican President Oscar Arias Sanchez, ended these conflicts and brought stability to the region.
The Treaty of Esquipulas stands as one of the most significant and understudied peace agreements of the late Cold War. These accords ran counter to the will of the more powerful United States, which throughout the 1980s had sought to use military force as the key to achieving regime change in Nicaragua. The United States policy of supporting guerrillas that waged a war of regime change in Nicaragua fanned the flames of conflict and destabilized the region. Esquipulas undermined this destructive policy. For the first time, the small nations of Central America, so long considered the imperial servants of the United States, thwarted an aggressive U.S. military policy. Through intense diplomatic meetings, and in the wake of the controversy that developed from the Iran–Contra scandal, President Arias of Costa Rica succeeded in creating a peace agreement for Central Americans and authored by Central Americans. The Esquipulas accords were a blanket repudiation of the near decade-long Contra war policy of the United States. Central America created diplomatic unity and facilitated a successful opposition to the military policy of its more powerful neighbor. This agreement was a great triumph of peace and diplomacy created in the face of what seemed like overwhelming odds.