MercoPress. South Atlantic News Agency

Third meeting between Presidents Lula & Bush.

Luiz Inácio Lula da Silva of Brazil on Friday became the first head of state who opposed the US-led war in Iraq to be received by US President George W. Bush in Washington.

The first summit of its kind - it included 10 cabinet members on each side - was seen as an effort to overcome political differences and trade disputes that have marred relations between the two nations.

"Brazil is and can continue to be a great partner of the United States. We have many things in common," Mr Lula da Silva said.

Mr Bush, who called Brazil "a friend" and an important partner for peace and prosperity in the Americas, said he was particularly impressed with Mr Lula da Silva's social policies.

The Bush administration has been pleasantly surprised with the economic austerity and market-friendly policies Mr Lula da Silva adopted since taking office on January 1. Its efforts to engage Brazil come amid a resurgence of leftwing sentiment in South America and scepticism towards the US-proposed Free Trade Area for the Americas.

There has also been growing popular disillusionment with market-driven reforms such as privatisation and trade liberalisation, adopted over the past decade.

"Brazil can clearly expand stability not only internally but for the whole region," said Donald Evans, US secretary of commerce, on the eve of the presidential meeting. "I applaud Lula for his determination to support policies that will bring hope to the Brazilian people."

The two presidents signed agreements to promote co-operation in agriculture, energy, and the environment and to set up permanent channels to facilitate economic policy consultation.

The US and Brazil have been locked in a series of trade disputes from steel to orange juice in recent years and disagree on the scope and timetable for FTAA.

Braslia wants to discuss agricultural subsidies and anti-dumping measures, which hamper its exports, within FTAA, while the US insists they be discussed within the World Trade Organisation.

Mr Lula da Silva criticised the US-led invasion of Iraq and disagrees with Washington's policy towards Cuba and its military support to fight Marxist guerrillas in neighbouring Colombia.