Venezuela and Mexico recalled their ambassadors yesterday over an escalating dispute over a US regional free trade proposal.
The diplomatic spat underscored sharp divisions among Latin American leaders over Washington's economic policies and an increasingly aggressive campaign by Venezuelan President Hugo Chavez to counter US influence in the region.
Venezuela announced the recall of its ambassador after Mexico threatened to withdraw its own envoy if Caracas did not apologise by midnight for remarks by Mr Chavez, who criticised Mexico's Vicente Fox and branded him a "lap dog" of US imperialism.
"We have ordered the immediate return of our ambassador Vladimir Villegas, leaving our affairs . . . in the hands of a commercial attaché," Venezuelan Foreign Minister Ali Rodriguez said.
Mr Rodriguez said Venezuela rejected the Mexican government's ultimatum for an apology.
Speaking in a live interview with the CNN en Espanolchannel shortly afterward, Mr Fox said Mexico would also withdraw its ambassador. Mr Chavez had taken a policy disagreement personally, Mr Fox said, and insulted the Mexican people.
"We have dignity in Mexico and we have to put a stop to anybody who offends the dignity of Mexico or its institutions," he said. "That defence will go as far as needed. Like we're doing right now, which is withdrawing our ambassador."
Venezuela is a key supplier of crude to the US market, but relations between Caracas and Washington have frayed since Mr Chavez came to office and strengthened ties with non-aligned states such as Cuba.
US officials portray Mr Chavez as a regional menace who has used his country's oil wealth to undermine democracy. He counters that Washington has backed attempts to topple his government to access his country's oil.