Calderon and Brazilian President Luiz Inacio Lula da Silva discussed the idea during a bilateral meeting at a gathering of the "Rio Group" of regional leaders near the Mexican Caribbean resort town of Playa del Carmen.
"Our governments have agreed to initiate a formal working process to evaluate and determine the areas of opportunity, the scope, benefits and sensitivities to a strategic economic integration agreement between Brazil and Mexico, Calderon told a news conference.
Mexico is keen to diversify its trading relations from the United States, the destination for 80 percent of its exports, after getting badly hit by the U.S. economic downturn. Calderon has often said that lowering trade barriers with Brazil makes sense.
Lula told the news conference that the two countries' bilateral trade balance of around $7 billion was "a disgrace."
Most of Brazil's trade is within the Mercosur bloc that groups Brazil, Argentina, Uruguay and Paraguay, and has Chile, Bolivia, Peru, Ecuador and Colombia as associate members. (Reuters)
