California's Governor Arnold Schwarzenegger has called for reform of US immigration laws to bring more Mexicans into the country legally.
Mr Schwarzenegger met Mr Calderon for two days of trade talks
After meeting Mexico's President-elect Felipe Calderon, Mr Schwarzenegger criticised a US plan to build more fences on the Mexican border.
He said the plan to prevent the illegal entry of Mexicans was crazy, unless more workers were allowed in legally.
Californian farmers said an immigration crackdown has caused labour shortages.
Felipe Calderon has called the planned fence deplorable.
Mr Schwarzenegger was in Mexico on a two-day trade visit to promote California exports.
During a private meeting with Mr Calderon, he said the planned fence would only provide a limited solution to the problem of illegal immigration.
"It is crazy for the federal government not to simultaneously ... also create a law where we can bring more people into the country legally," Mr Schwarzenegger said.
Mr Calderon has called US plans to build a 700-mile (1,125km) border fence "deplorable".
On Friday, mayors from American and Mexican border cities signed a document denouncing the fence, declaring the border an area for union and solidarity - not separation.
Mr Bush signed the plan for a fence into law despite strong Mexican opposition in October.