Visiting Venezuelan President Hugo Chavez on Saturday met with his Colombian counterpart Alvaro Uribe in the Caribbean port of Cartagena to discuss economic exchanges and cooperation.

During the 7-hour meeting, both sides agreed to boost bilateral trade and work together to face the challenge of the global financial crisis.

The two presidents decided to establish a bilateral economic commission to study the existing economic system of the two nations and put forward new ideas and measures to promote bilateral economy and trade.

Both sides vowed to invest 100 million U.S. dollars each in a special fund to support small and medium export enterprises and spur production and employment amid the global economic downturn.

Chavez told a news conference that bilateral trade had developed in a fast pace in recent years, with the volume exceeding 7 billion U.S. dollars in 2008.

He said he believed that bilateral trade would hit 10 billion dollars in 2010.

Venezuela is Colombia's second biggest trade partner following the United States, although the two neighbors have had disputes in some bilateral and multilateral issues in recent years.

In March 2008, Colombian troops entered into the Ecuadorian territory to fight against the Revolutionary Armed Forces of Colombia (FARC), causing a diplomatic crisis among Colombia, Ecuador and Venezuela. The diplomatic ties between Colombia and Venezuela has been restored after mediation.

(Xinhua News Agency January 25, 2009)