Mexico's President Felipe Calderon has promised a new trade proposal between Mexico and Brazil.

Mr Calderon, meeting business leaders in Sao Paulo, said he would talk to industry and political and social groups in his country about changes to trade between the two countries.

Brazil and Mexico are Latin America's largest economies and are currently responsible for around 70% of all economic activity in the region.

Mexico, which already has trade deals with the US and Canada, has suffered from recessionary trends at home and abroad.

Mexico sends 80% of its exports to the US and has been particularly exposed to the US fall in consumer spending.