MercoPress. South Atlantic News Agency

Brazil and Argentina sign Copacabana Declaration.

Mercosur main partners Argentina and Brazil will work actively so that negotiations with multilateral organizations, particularly fiscal demands, don't imperil growth or condition infrastructure investments.

After several weeks of negotiations and cobbling president Nestor Kirchner from Argentina and Luiz Inacio Lula da Silva from Brazil signed this Tuesday in Rio do Janeiro the Copacabana Act (Declaration on cooperation mechanisms for growth with fairness) committing both countries "to conduct negotiations with multilateral credit organizations ensuring primary surpluses and other economic policy measures that do not jeopardize growth and guarantee debt sustainability in a manner that preserves investment in infrastructure".

The six points declaration ends expressing that to accomplish the proposals it has been decided to hold a meeting no further than sixty days from now with the participation of the two countries economic and financial teams plus Foreign Affairs ministers.

"We had an in depth conversation with President Lula. I believe changes can be achieved rationally, with responsibility, good management and looking after fiscal numbers, but also distributing the country's wealth and targeting those who most need it", said President Kirchner after the bilateral summit.

Both presidents also called on other Mercosur members and associate members to participate "in this process" and adhere to the document, which was described by the Argentine delegation as "historic", underlining it's a clear "ratification signal" of the bilateral strategic alliance.

According to press reports during the bilateral summit President Kirchner received a phone call from the elected Spanish president Jose Luis Rodríguez Zapatero who promised "unconditional support" for Argentina, recalling Argentina's solidarity during the forties and fifties.

Argentina and Brazil also agreed on an ambitious highway program and railway system that crossing Argentina from Chile will reach the Sao Paulo hub.

The Mercosur Highway and Railway would eventually link Chilean ports in the Pacific with the Brazilian Atlantic after crossing the Parana-Paraguay Hydro-way in the heart of South America.