Venezuela-Colombia Cold War
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On July 26th, 2009, Colombia officials stated that they had found and captured three anti-tank rocket launchers sold to the Venezuelan army by Sweden, but were in a FARC camp at the time of capture. Found a year ago, Sweden has subsequently confirmed that they had sold the weapons to Venezuela in 1988.
Columbian officials seized on the weapons to make the case that the Venezuela continues to support FARC. The capture is corroborated by e-mails found on a laptop belonging to the recently killed FARC leader Raul Reyes. In e-mail dated early 2007, a FARC commander retells his meeting with three Venezuelan officials who offered him “bazookas” and then delivered “85 millimetre anti-tank rockets.”
President Hugo Chavez dismissed the accusation of FARC aid, and insisted that the e-mail was a forgery despite evidence of several more e-mails detailing consistent Venezuelan. To explain the presence of the launchers, Chavez stated without evidence that they had been stolen from a naval base in 1995.
Feigning offense at the charge, Chavez withdrew the Venezuelan ambassador for the third time in less than two years, called for a cease in Columbian car imports and threatened an end to trade with his second largest trading partner. But this time - and citing U.S. bases in Colombia - Chavez has followed through and a trade was has broken out between both nations:
2008 - $7.2billion cross-border trade balance. $6billion was Colombian exports (cars, food, and clothing). Each nation is the other’s second largest export market (after the U.S.).
Trade for Venezuela directly supported 50,000 jobs and an additional 250,000 indirectly.
30,000 Colombians used to cross into Venezuela to buy foods (currency exchange rate favors Colombians due to Venezuelan inflation) – but have since stopped due to Venezuelan National Guards confiscating goods at the border.
Import permits and dollar exchange for imports have been ceased by Venezuelan authorizes.
4/5 of trade passes through Venezuelan city of San Antonio, and previously 500 daily trips is now down to roughly 80. Colombian Ministry of Trade: 25% decline, 50% by 2010
Chavez is seeking alternatives to Colombian goods. Venezuela has signed $1.1billion trade deal with Argentina: 10,000 cars (previously Colombia’s quota), rice, medicine, 2m pairs of shoes.
This trade was is unfortunate for both sides, and the Mafia, linked to state civilian and military personnel, is taking over industry on Venezuelan side.
And it does not appear to be getting better: Late November, Venezuelan authorities destroyed two pedestrian bridges linked to Colombia which they claimed were used by militias for drug trade. Colombian government stated act will only worsen relations
It may seem like just a trade war, but Chavez has recently threatened war against his neighbor. Trade is not a trivial matter between nations:
"If goods don’t cross borders, soldiers will."- 19th Century French Economist Frederic Bastiat
