FACTBOX-What is at stake in Andean crisis?
March 3 (Reuters) - Venezuela and Ecuador sent troops to their borders with Colombia over the weekend, raising fears the dispute could interrupt trade or even break into war.
Debt prices fell in all three countries on Monday. Here are some details on what is at stake in the dispute:
THE ECONOMY
* Trade between the three countries is vital to their economies. Colombia has about $6 billion in trade with Venezuela and about $2 billion with Ecuador.
Colombia has had strong economic growth under conservative President Alvaro Uribe, helped by exports to neighboring countries. Tensions with the leftist leaders of Venezuela and Ecuador could restrain Colombian growth if trade is squeezed off and more government spending is directed toward defense.
Venezuela's economy has grown rapidly in recent years but a shut-down of the border with Colombia could exacerbate food shortages, a politically sensitive issue that has hurt leftist President Hugo Chavez's support in recent months.
FREE TRADE
The crisis could cement Colombia's status as the most reliable ally of the United States in Latin America and improve chances that the U.S. Congress will approve a free trade deal with the country. The pact has until now been blocked by Democrats concerned about Colombia's human rights record.
SECURITY
The crisis was sparked when Colombian troops attacked a Colombian guerrilla camp inside Ecuadorean territory, killing the FARC rebel army's No. 2 leader.
The FARC could respond by trying to step up its own military campaign, and burrow itself more deeply into Ecuadorean and Venezuelan territory. It might also refuse to release hostages such as three American defense contractors French-Colombian politician Ingrid Betancourt. It has freed six other long-term kidnap victims since the start of the year.
Colombia has cracked down on the FARC in recent years, helped by billions of dollars in mostly military aid from the United States. Uribe says Venezuela and Ecuador do not cooperate enough in the fight against drugs.
DRUGS WAR
A worsening of the conflict could damage attempts to reduce cocaine production and trafficking in the Andean region.
The FARC has been mainly funded for the last two decades by Colombia's multibillion-dollar cocaine trade, but the leftist governments in Venezuela and Ecuador are critical of U.S. military aid to Colombia aimed at fighting the rebels and drug trafficking.
Any reduction of anti-drug efforts in Venezuela and Ecuador could make it easier for cartels to smuggle cocaine across the region. Colombia has a 1,400-mile (2,200-km) border with Venezuela and its border with Ecuador stretches about 400 miles (600 km). (Reporting by Hugh Bronstein; Editing by Kieran Murray)
Debt prices fell in all three countries on Monday. Here are some details on what is at stake in the dispute:
THE ECONOMY
* Trade between the three countries is vital to their economies. Colombia has about $6 billion in trade with Venezuela and about $2 billion with Ecuador.
Colombia has had strong economic growth under conservative President Alvaro Uribe, helped by exports to neighboring countries. Tensions with the leftist leaders of Venezuela and Ecuador could restrain Colombian growth if trade is squeezed off and more government spending is directed toward defense.
Venezuela's economy has grown rapidly in recent years but a shut-down of the border with Colombia could exacerbate food shortages, a politically sensitive issue that has hurt leftist President Hugo Chavez's support in recent months.
FREE TRADE
The crisis could cement Colombia's status as the most reliable ally of the United States in Latin America and improve chances that the U.S. Congress will approve a free trade deal with the country. The pact has until now been blocked by Democrats concerned about Colombia's human rights record.
SECURITY
The crisis was sparked when Colombian troops attacked a Colombian guerrilla camp inside Ecuadorean territory, killing the FARC rebel army's No. 2 leader.
The FARC could respond by trying to step up its own military campaign, and burrow itself more deeply into Ecuadorean and Venezuelan territory. It might also refuse to release hostages such as three American defense contractors French-Colombian politician Ingrid Betancourt. It has freed six other long-term kidnap victims since the start of the year.
Colombia has cracked down on the FARC in recent years, helped by billions of dollars in mostly military aid from the United States. Uribe says Venezuela and Ecuador do not cooperate enough in the fight against drugs.
DRUGS WAR
A worsening of the conflict could damage attempts to reduce cocaine production and trafficking in the Andean region.
The FARC has been mainly funded for the last two decades by Colombia's multibillion-dollar cocaine trade, but the leftist governments in Venezuela and Ecuador are critical of U.S. military aid to Colombia aimed at fighting the rebels and drug trafficking.
Any reduction of anti-drug efforts in Venezuela and Ecuador could make it easier for cartels to smuggle cocaine across the region. Colombia has a 1,400-mile (2,200-km) border with Venezuela and its border with Ecuador stretches about 400 miles (600 km). (Reporting by Hugh Bronstein; Editing by Kieran Murray)
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