MANAGUA, Nicaragua—A left-wing Latin American trade group said Monday it was recalling its ambassadors to Honduras after the elected President Manuel Zelaya was ousted by troops and flown into exile.

"In the face of the dictatorial government that intends to be imposed, the countries of Alba have decided to withdraw our ambassadors and to leave minimal diplomatic representation in Tegucigalpa," said a statement issued after talks in Nicaragua.

Alba—the Bolivarian Alternative for the Americas—was founded by Venezuelan President Hugo Chavez and Cuban leader Fidel Castro in 2004 and also includes Bolivia, Nicaragua, and the Caribbean island of Dominica.

Honduran President Manuel Zelaya brought his country into the regional grouping after his election at the end of 2005.

Chile and Mexico later announced they were withdrawing their ambassadors as well.

Following Chavez's lead, Alba members called for Zelaya to be returned to power after his removal by the Honduran military on Sunday, and refused to recognize the new head of state chosen by the Honduran parliament.

"There is no question of seeking diplomatic accreditation from the usurpers," said the motion, which was read out by Ecuador's Foreign Minister Faldor Falconi.

The withdrawal of ambassadors will remain in effect until Zelaya is reinstated, the Alba motion said.

The Alba meeting was called to respond to Zelaya's arrest and forcible transfer out of Honduras on Sunday.

The Honduran military detained the president just hours before polls were due to open in a controversial vote that Zelaya hoped would pave the way for him to run for another term in office, overcoming a constitutional prohibition.

The deposed president attended the summit called on his behalf along with regional counterparts including Chavez, Ecuador's President Rafael Correa, Bolivian President Evo Morales, Nicaragua's President Daniel Ortega, and Cuban Foreign Minister Bruno Rodriguez.

Reaction from Latin American leaders to Zelaya's overthrow has been overwhelmingly negative, with initial individual condemnations being followed up from official statements from regional groups.

US President Barack Obama said Monday that the United States believes that ousted leader Manuel Zelaya "remains the president of Honduras."

Obama said that the coup which ousted Zelaya was "not legal" and added that it set a "terrible precedent," and called for international cooperation to solve the crisis peacefully, following talks with Colombian President Alvaro Uribe.

Nicaragua will also host two other regional groupings Monday—the Central American Integration System and the Rio Group.

Conservative Mexican leader Felipe Calderon arrived in Managua Monday for the Rio Group meeting and told reporters that both Mexico and the Rio Group "strongly reject the coup d'etat" in Honduras.

Honduras is a member of the Rio Group, which was created in 1986 as a competitor to the Organization of American States, which sits in Washington. Cuba became the group's 23rd member state last December.