The Foreign Ministers of Brazil and Argentina have met to discuss how to strengthen the regional free-trade area, Mercosur which also includes Paraguay and Uruguay.

After meeting in Rio de Janeiro, Luiz Felipe Lampreia and Adalberto Rodriguez said they would continue to work towards coordinating their macro-economic policies.

The two ministers acknowledged that both countries had conflicting interests in specific areas such as car parts but said these would be discussed at another meeting scheduled for April in the Argentine capital, Buenos Aires.

Correspondents say factories making car parts and electronic components have relocated from Argentina to Brazil after Brazil devaluated its currency a year ago.

From the newsroom of the BBC World Service