06 August 2010

BRASIL/VENEZUELA/ COLOMBIA: Lula Seeks To Calm Tensions Over FARC Rebels Without Jeopardizing Trade.

BLOOMBERG/ Iuri Dantas and Charlie Devereux/       President Lula meets with Hugo Chavez over accusations that Venezuela is harboring Marxist rebels from Colombia. “There’s been a lot of indulgence of Chavez and this was a chance to draw some lines, because Lula is one of the few leaders that has any influence over Chavez,” said analyst Michael Shifter. “It’s clear Chavez is becoming more radical and it’s hard to get a sense Lula has gone as far as he could.” But, there are complex economic interests involved so Lula must avoid confrontation. Since Lula took office in 2002, exports to Venezuela jumped 494% to $3.6 billion last year, while investment by Brasilian companies there has more than doubled to $183 million in 2008.