Wed, 23:41 12 Mar 2008 GMT17

 

Venezuela resumes trade with Colombia amid dispute
05 Mar 2008 00:25:18 GMT
Source: Reuters
(Recasts with lifting of trade restrictions)

By Manuel Hernandez

LA RAYA, Venezuela, March 4 (Reuters) - Venezuela on Tuesday lifted trade restrictions with Colombia after an earlier halt, state television reported, amid a diplomatic crisis that threatens stability in the Andean region.

Venezuelan President Hugo Chavez ordered tanks to the border after Colombian security forces killed leftist rebels in an attack on Ecuadorean territory, escalating tensions in a dispute Chavez says could lead to war.

A state television reporter said authorities had "decided to allow the entrance of Colombian cargo trucks into Venezuelan territory (if) they are carrying high priority and perishable goods."

Military officials at the border told Reuters they were allowing all cargo trucks to cross into Venezuela.

"Tomorrow the border will be open like any other day," said one official when asked if the restrictions would be lifted permanently.

Truckers and transport industry leaders said Venezuela had shuttered customs operations at three major crossing points, creating long lines of truck on the Colombian side of the border.

The border opening followed hours of conflicting media reports and confusion along the border over what the government had actually decided.

Agriculture Minister Elias Jaua in the morning said, "We have taken some measures like the closure of the border" without elaborating.

Venezuela's Seniat tax agency, which is also in charge of customs, did not respond to requests for clarification.

The two nations have around $6 billion a year in trade, with Venezuela importing cars, beef and medicine from its neighbor. Colombia imports chemicals, iron and plastic from Venezuela.

Venezuela has also increasingly relied on imports from its neighbor to address shortages of staple foods such as milk and chicken.

The country's business leaders say the shortages are caused by price controls that have not kept up with Latin America's highest inflation, while government leaders blame the problem on increased demand and hoarding.

(Additional reporting by Enrique Andres Pretel, Jorge Silva, Ana Martinez, and Deisy Buitrago, Writing by Brian Ellsworth; Editing by Cynthia Osterman)
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