During a meeting with businessmen in the Brazilian city of São Paulo, Mexican President Felipe Calderón called for a free trade agreement between the two countries.

He said free trade would be the fastest way to develop the Mexican and Brazilian economies, which are two biggest in Latin America.

Mexico already has a free trade agreement with Canada and the United States: the North American Free Trade Agreement, or NAFTA as it is more commonly known. Mexico is extremely dependent on its exports to both countries; approximately 80 percent of its exports travel to its northern neighbours. But much of that trade now lies dormant due to the economic recession. In addition, Mexico is also suffering from the damage to its tourist trade caused by the Mexican flu.

Mr Calderón is currently on a three-day state visit to Brazil.

Photo of Felipe Calderón from Wikimedia Commons