Cooperation with the EU is vital for the Latin American countries that seek to improve their economies, and Brazil will work hard to promote the plan as "it will allow the things that have been working well to continue, and improve those that are not working," Silva said.

Portuguese Prime Minister Jose Socrates, whose country currently holds the EU's rotating presidency, said Brazil is the path for strategic collaboration between the EU and Latin American countries, adding that EU's foreign policy would come out richer, deeper and more coherent at the end of this summit.

Leaders attending the summit also discussed the world's response to climate change and the use of biofuel to reduce carbon dioxide emissions.

Brazil has immense potential and offers one of the biggest responses to fighting climate change, European Commission President Jose Manuel Barroso said.

"The European Union and Brazil will work together in this field and we should consider collaborating to create a scheme for the 2012 post-Kyoto era," Barroso said.

Mercosur comprises five member states, Argentina, Brazil, Paraguay, Uruguay and Chile, and five associate members. The bloc was established to bring about the free movement of goods, capital and services among its member states.