VENEZUELAN President Hugo Chavez said yesterday that reconciliation was impossible with Colombia’s president as the two leaders traded stern warnings in an escalating diplomatic crisis that threatens trade ties.

Chavez said Sunday he was putting relations “in the freezer” after President Alvaro Uribe ended the Venezuelan leader’s role mediating with Colombia’s leftist rebels.

That announcement drew a strong rebuke from Uribe, who said Chavez’s actions meant he wanted to see a “terrorist government” run by leftist rebels in Bogota. The spat is the bitterest yet between Chavez and the U.S.-allied Uribe, who in the past have sought to cultivate cordial ties.

It could have serious economic consequences. The two countries are major commercial partners, with US$4.1 billion in trade last year, about two-thirds of that in Colombian exports to Venezuela.

Neither leader announced any concrete plan, but Chavez said economic relations would be hurt as a result of Uribe’s actions, which he called “a spit in the face.”

Relations with Colombia had reached their “most serious crisis,” Chavez said in a televised interview early yesterday. While diplomatic channels may remain open, he said, “not reconciliation because it’s impossible now. When it reaches these levels between two heads of state, it’s impossible.”(SD-Agencies)