Mexico, Brazil to start talks on free trade

PLAYA DEL CARMEN, Mexico

The presidents of Mexico and Brazil say their governments will start talks on a possible free trade agreement between Latin America's two largest economies.

Mexican President Felipe Calderon and Brazil's Luis Inacio Lula da Silva say the talks will include businessmen from both countries and a future free trade pact would depend on whether they can find investment opportunities.

The leaders made the announcement Tuesday on the sidelines of a summit in a Caribbean resort of Latin American and Caribbean leaders.

They also announced the investment of $2.5 billion by petrochemical makers Braskem of Brazil and Mexico's Idesa in a plant to be built in the Mexican Gulf state of Veracruz. The plant would create 3,000 jobs.