Highly-rated Brazil were beaten 72-70 by host nation Puerto Rico and knocked out of contention for next year's Athens games at the America's Olympic qualifying tournament on Wednesday.

Brazil now have a 2-4 record and are out of Saturday's semi-finals.

Only the top three teams from the tournament advance to next year's Athens Olympics.

In another upset on Wednesday, world championship silver medallists Argentina slumped to a surprise 97-92 defeat by Venezuela.

The United States (6-0), who overcame a slow start to beat Mexico 96-69, and Canada (4-2), who sneaked past the Dominican Republic 78-75 with two late Steve Nash free throws, have qualified for the semi-finals.

Despite Wednesday's defeat, Argentina (3-3) have also qualified for the semi-finals and now play the Dominican Republic (1-5) in their final second round match on Thursday.

Brazil play Mexico (2-4), the US meet Puerto Rico (4-2) and Canada will play Venezuela (2-4) on Thursday.

Brazil, who finished eighth at last year's world championships in Indianapolis, were eliminated from medal contention when the hosts rallied for their two-point victory.

Puerto Rico trailed by as much as eight points in the third quarter, but Eddie Casiano's layup with 19 seconds left snapped a 70-70 tie.

Brazil's Anderson Varejao then missed a three-pointer right at the buzzer.

Elias Ayuso scored 19 points for the Puerto Ricans.

Venezuela's Oscar Torres had a huge game for his side, scoring 20 points to lead them past the Argentines. Victor Diaz chipped in with 15 points while Miguel Marriaga added 14.

Argentina, whose balanced offense had pushed the US on Tuesday, were led by Andres Nocini's 17 points while Ruben Wolkowisky added 16.

US VICTORY

After a slow start, the United States cruised to victory over Mexico to remain undefeated at the tournament.

Tim Duncan's 16 points and six rebounds led the US, while Allen Iverson chipped in 13.

"We've got to come out the same way we do in the second half," Iverson told reporters in reference to their early game problems. "We have to play with some sense of urgency. That's something we need to be concerned about."

Mexico actually led 26-19 after the first quarter but the US tied it up 30-30 with five minutes left in the half on a dunk by Duncan, who reeled off 12 straight points, to help his side to a 49-40 lead at halftime.

The US then took a 20-point lead with six minutes remaining in the third quarter and never looked back.

"When you play quality teams, you've go to jump on them early," head coach Larry Brown said. "We've had a difficult time doing that."

In a near upset, Canada edged the Dominican Republic with a narrow 78-75 victory.

Denham Brown led Canada with 16 points and six rebounds, though it was two late free throws by Nash that sealed the win.

"It was very tiring, but considering the circumstances it was a great win for us," said Nash of the fact his side had played five games in five days.

Jose Vargas led Dominican Republic with 17 points and 10 rebounds.

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