Mexican government is hoping to ink a free-trade deal with Brazil by the end of President Felipe Calderon’s administration in 2012.

The declaration was made by Rogelio Granguillhome, head of economic relations at Mexico’s Foreign Ministry.

Further, Mr. Calderon said, “Mexico aims to strengthen commerce with Brazil and that official from both countries, the largest economies in Latin America, would begin talks to increase investment and study a free-trade accord.”

Talking in an interview, Granguillhome said, “A free-trade agreement between Mexico and Brazil is important not only for Mexico and Brazil but for all of Latin America. It will mark policy in Latin America for the next 20 years.”

Meanwhile, the president’s administration is looking for better economic ties with Latin America, Europe and Asia to shrink its dependence on the United States, the destination for 80% of exports.

Mexico’s financial system shrank the majority in Latin America during the first three quarters of 2009 as the U. S. recession dried up demand.

In the meantime, the central bank said in a note that Gross domestic product (GDP) will come down by 7% in 2009.

Further, Granguillhome said, “The government will soon announce new investments by companies from Latin America, Europe and Asia. Mexico aims to increase scientific, technological and educational agreements with other countries as well.”