CARACAS, (Reuters) – Venezuela could substitute everything it buys from Colombia with imports from other countries, a top official said yesterday, escalating a feud that will likely slash the $7 billion of trade they share.
President Hugo Chavez is furious with Colombia for accusing Venezuela of supporting guerrilla fighters across the border and over a deal to increase U.S. access to Colombian military bases.
Trade Minister Eduardo Saman said he saw no difficulties in replacing Colombian meat, cars and chemicals with alternatives bought from countries such as Brazil or Argentina.
“If Colombia does not rectify itself regarding the military bases, within one year we could replace pretty much all the trade,” Saman told Reuters.
Commerce between the two countries, which share a 1,375-mile (2,200-km) border, has soared in recent years as Venezuelan producers failed to keep up with growing consumer demand on the back of an oil bonanza.
In 2008, mutual trade reached a record $7 billion.
Venezuela has already signed contracts worth more than a billion dollars for Argentine products since the feud flared up in July. A large delegation of Brazilian businessmen was in Caracas on Thursday.
Brazilian aircraft maker Embraer said yesterday it was negotiating a deal worth about $700 million to sell 20 aircraft to Venezuela commercial airlines.
