PUERTO ORDAZ, Venezuela (AP) -- President Hugo Chavez sought to clear the way for Venezuela to join the South American trade bloc Mercosur as he met Argentine leader Nestor Kirchner Monday in talks that also focused on plans to build a natural gas pipeline between the two countries.Venezuela has proposed a network of pipelines to carry its natural gas to South American markets and eventually tap into supplies in Bolivia, the continent's second-largest source after Venezuela. The cost for a pipeline running south through Brazil to Argentina has been estimated at $10 billion (euro8.5 billion).The two leaders visited a hydroelectric dam that supplies power to millions of Venezuelans, smiling as they greeted workers but making no comments to reporters.Some $223 million (euro189 million) in Argentine investment for upgrades to the dam and increased Venezuelan fuel sales to Argentina were among accords the leaders were expected to sign Monday at the close of their talks.Argentina is backing Venezuela's bid to become a full member of Mercosur, which also includes Brazil, Paraguay and Uruguay.Chavez says the trade bloc represents an alternative to the U.S. proposal for a hemisphere-wide free trade zone, which has been criticized by Kirchner and other Mercosur leaders.Chavez has argued the U.S.-backed free trade zone would help big U.S. companies at the expense of Latin America's poor.Chavez, a critic of the U.S. government and close ally of Cuba's Fidel Castro, has sought to build strong ties with left-leaning leaders across Latin America, including Kirchner.This year, Venezuela bought $950 million (euro791 million) in Argentine bonds, and Chavez said he would talk with Kirchner about buying more.The Argentine president arrived Sunday night in the eastern city of Puerto Ordaz, about 500 kilometers (310 miles) southeast of Caracas.Venezuela's bid to join Mercosur has backing within the group, and Kirchner's visit was expected to help the leaders sketch out details of an accord ahead of a December 9 meeting in Uruguay where Chavez hopes to make his country a full member.Venezuela is an associate member, along with other nations from Chile to Colombia. Mexico also has expressed interest in joining as a full member.Backers say that Mercosur, created in 1994, has helped boost trade. Critics say it has made few concrete achievements.Venezuelan opposition leader and presidential candidate Julio Borges warned the country would lose jobs by joining the trade bloc. Chavez has called it a path to improving all members' economies through greater cooperation, rather than unrestrained U.S.-style capitalism.Other agreements expected during the talks included a deal for Argentina to help install an elevator-manufacturing business in Venezuela.The leaders were expected to touch on a bitter dispute between Chavez and Mexico's Vicente Fox that last week led both leaders to withdraw their ambassadors. The two began to feud at a recent summit in Argentina, where Fox supported the U.S. proposal for a Free Trade Area of the Americas and Chavez called the idea dead.Chavez later labeled Fox a "puppy" of the United States, but during the weekend said he hoped the flap soon would be resolved.Copyright 2005 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
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