I expect it goes on between the English, Irish, Scottish and the Welsh. Probably between the French and an adjacent country. Indonesia and Malaysia do it, as does Malaysia with Singapore. In Australia, the country we love to insult is New Zealand. Most of us are rather fond of our little neighbour and I think they are quite fond of 'Western Island'. There are enough of them living, so they must like us. Btw, Victor is swanning around NZ at the moment and swanning across the seas.
I found this hardware store advertisement from New Zealand amusing. To save you having to watch it twice to really get it, the boy at the end in the green and yellow is Australian.