Last month, the United States and Venezuela engaged in a diplomatic tit-for-tat reminiscent of the Cold War, trading espionage accusations against each other's diplomats, then expelling them. The two countries have also clashed on airspace and landing rights for civilian and military aircraft, as the United States has sought to block Venezuela's bid to become a nonpermanent member of the United Nations Security Council. Venezuela has threatened to end the oil sales that provide the United States with about 12% of its imports, and begun rewriting its contracts with U.S. oil companies.
The tougher U.S. approach also reflects an administration interest in trying to head off any further leftist inroads in upcoming elections in the region. A number of governments face elections this year in Latin America, and Chavez has made known his support for opposition candidates in several of the countries, including Mexico, which will elect its president in July.
"There is some concern that if the United States doesn't play its cards right, there could be a major policy shift in the region that favors Venezuela's interests over the United States," said Daniel P. Erikson of the Inter-American Dialogue, a research organization in Washington.
Since taking office in 1999, Chavez has been trying to build a left-leaning alliance and has offered cut-rate oil and other inducements through a foreign aid program some believe to be worth billions of dollars annually. His stated aim is to push an alternative development model that eases the sting of globalism and favors the interests of the poor, who make up about 40% of the region's population.
Bernardo Alvarez, Venezuela's ambassador to the United States, defended his country's policies, saying they respond to failed economic models that have increased poverty and social exclusion. "Chavez and [Bolivian President] Evo Morales are not accidents of history," Alvarez said.
In a recent interview, Alvarez defended Venezuela's relationship with Iran, saying the two nations had forged strong ties as co-founders of OPEC in 1960. He said his government's repeated efforts to improve relations with Washington have been met with indifference.
"Any time we try to open a dialogue, there are people who act to sabotage it," Alvarez said.
Many observers are skeptical that Chavez has much appeal beyond Fidel Castro's Cuba and impoverished Bolivia, but U.S. officials are concerned that his efforts could foment violence in unstable countries and weaken Latin American support for the American program of free market economics and U.S.-style governance.