The Treaty of Madrid was signed on January 13, 1750, between the Spanish Empire and the Portuguese Empire. This agreement aimed to resolve territorial disputes in South America, particularly concerning the borders of their respective colonies. It established new boundaries and sought to promote peace and cooperation between the two nations. The treaty was significant in the context of European colonial expansion, as it reflected the shifting dynamics of power in the region. However, it faced challenges and was later contested, leading to further conflicts over territorial claims in the Americas.