Chavez cannot afford to cut off US oil: analysts

Colombia and Venezuela have reestablished diplomatic relations after ties were broken last month in a row over alleged harbouring of rebels.Conservative Colombian President Juan Manuel Santos and leftist Venezuelan President Hugo Chavez agreed to "relaunch bilateral relations and reestablish diplomatic ties between the two countries based on transparent and direct dialogue," the statement said.Santos said he also received assurances from Chavez that the Venezuelan leader would not allow guerrilla groups to set up camp inside his borders.

Venezuela broke off diplomatic ties with Colombia Thursday in a worsening row over public accusations from Bogota that it was providing a safe haven to leftist guerrillas."I announce with a tear in the heart: Venezuela breaks off from this moment all relations with the government of Colombia," Venezuelan President Hugo Chavez told reporters in his presidential palace in Caracas.

One of the Commerce Department’s top priorities is to strengthen the economic ties between the United States and our trading partners. One year ago today, the ties between the United States and Colombia became much stronger with the implementation of the U.S.-Colombia Trade Promotion Agreement, which Acting Secretary of Commerce Rebecca Blank marked during her remarks today at a luncheon hosted by the American Chamber of Commerce and the Counsel of American Companies (CEA) in Bogotá, Colombia. 

Reactions to the death of Venezuelan President Hugo Chavez were as mixed, polemical and outsized as the leader was in life, with some saying his passing was a tragic loss and others calling it an opportunity for Venezuela to escape his long shadow. Seen as a hero by some for his anti-U.S. rhetoric and gifts of cut-rate oil, others considered him a bully.

Today's press conference by Venezuelan Vice President Nicolás Manduro gave the impression that Hugo Chavez is on the brink of death.

Ed Note: The following is a cross-post that originally appeared on ITA's blog, "Tradeology."Christopher Blaha is a Senior International within the Office of Trade and Policy Analysis and Julie Anglin is the Colombia Desk Officer within the International Trade Administration. Today more than 80 percent of U.S. exports of consumer and industrial products to Colombia become duty-free as part of the U.S.-Colombia Trade Promotion Agreement. This includes agricultural and construction equipment, building products, aircraft and parts, fertilizers, information technology equipment, medical scientific equipment and wood. Also, more than half of U.S. exports of agricultural commodities to Colombia become duty-free, including wheat, barley, soybeans, high-quality beef, bacon and almost all fruit and vegetable products.The agreement also provides significant new access to Colombia’s $180 billion services market, supporting increased opportunities for U.S. service providers. For example, Colombia agreed to eliminate measures that prevented firms from hiring U.S. professionals, and to phase-out market restrictions in cable television.Prior to the enactment of this agreement, the average tariff that U.S. manufactured goods faced entering Colombia was 10.8 percent. With entry into force today, Colombia’s average tariff rate for manufactured goods from the United States has been reduced to 4 percent.

Venezuela's President Hugo Chavez dismissed Wednesday Spanish accusations that his government was involved in plots by Colombian and Basque guerrillas to assassinate the Colombian president, saying he had "nothing to explain."Spanish Prime Minister Jose Luis Rodriguez Zapatero had demanded an explanation after a Spanish judge charged that the guerrilla groups plotted to kill in Spain Colombian politicians, including President Alvro Uribe, with Venezuelan "governmental cooperation."

Venezuelan Vice President Nicolás Manduro says President Hugo Chavez has died, Reuters reports.