Latin America roundup

The presidents of Brazil and Argentina promised Thursday to respect Bolivia's nationalization of its natural gas sector but called for more talks on gas prices and foreign production in the Andean nation to avoid a regional crisis.

The deal was reached at an energy summit which also included Venezuela.

(L-R) Presidents of Argentina, Bolivia, Brazil and Venezuela

By announcing an agreement on energy pricing last night, they seek to dispel the impression that the continent's left-wing leaders were sharply divided over Bolivian President Evo Morales' shock nationalization of the Andean nation's energy sector.

On the other side of Latin America though, Venezuela had pulled out its own ambassador to Peru after Peru had done the same earlier after Hugo Chavez had called Alejandro Toledo and Alan Garcia "crocodiles from the same water hole" for turning their backs on the region by agreeing to a FTA with the US.

Situation looks sticky here. If left unchecked, it could add fuel to the fire and spark a war.