WRAPUP 2-Clinton on defensive amid Colombia trade flap

(Updates with Democratic dinner, previous HILLSBORO)

By Ellen Wulfhorst

BUTTE, Mont., April 5 (Reuters) - U.S. Democratic presidential candidate Hillary Clinton found herself on the defensive over a top aide's meeting with Colombia on a trade deal, as she and rival Barack Obama courted voters on Saturday in Western states.

Mark Penn, chief campaign strategist to the New York senator, has apologized for meeting with Colombia's U.S. ambassador in his separate role as a lobbyist hired by the South American country and close U.S. ally to win congressional approval of the trade deal with the United States.

But the issue poses problems for Clinton for political reasons as well as diplomatic ones as she vies with Obama to become the Democratic nominee to run against Republican John McCain in the November election. Anxiety about free trade runs high with the working-class voters Clinton and Obama are courting and both oppose the deal with Colombia.

The president of the politically powerful Teamsters union, James Hoffa, said Penn's meeting with the Colombian officials undermined Clinton's stance on labor issues as well as trade.

"How can we trust that a President Hillary Clinton would stand strong against this trade deal when her top advisor is being paid by Colombia to promote it?" he asked in a statement. He said the trade deal was "anathema to the labor movement."

The controversy also prompted an angry reaction from Colombia, which took offense at Penn's statement in which he called his meeting with the country's ambassador "an error in judgment."

"The Colombian government considers this a lack of respect to Colombians, and finds this response unacceptable," the Colombian Embassy in Washington said in a statement on Saturday. The embassy announced it was ending a contract with Penn's firm, Burson-Marsteller Worldwide, which had been hired a year ago.