The Elves of the badlands do not take kindly to humans, nor should they. Beyond living memory, when Elves, Dwarves, Hobbits, and Humans mingled, disease was rampant and genetic ailments plagued humankind. With the rise of the Party came new scientific studies showing that elves were the harbingers of illness and left those humans they mingled with (or that were descended from them) fraught with ailments. Elves did not take this well, nor should they have. However, one event turned heated conversation, to violence.
After numous minor scares and bombing of a critical racial medicine research hospital by an elvish discontent in which 97 civilians were killed, was seen as a sign of elvish malignance. This sparked race riots and then a war that spanned a century in in which "true" Andervaanians emerged victorious. The Great Purge that followed drove the elves out of Andervaan and left their dying numbers to fend for themselves in the Badlands, where living is as difficult and dangeous as it sounds.
Andervaanians don't think twice about these elves; the majority of people believe that they were beaten back entirely, only rarely filtering into Andervaanian society as terrorists or plague bringers. Elves managed to survive their near extinction and slowly, but surely, began to develop a society of their own in the Badlands. They do not appreciate outsiders, they do not bargain or trade with humans - the only time they will is if someone can smuggle them into one of Andervaan's safe cities with a biological weapon or bomb, which will be used indescriminately.