Brazilian President Luiz Inacio Lula da Silva gives a speech on the opening session of the first South American-Arab Summit held in Brasilia, capital of Brazil on May 10, 2005.

Brazilian President Luiz Inacio Lula da Silva (R), Peruvian President Alejandro Toledo (C) and Argentine President Nestor Kirchner

Opening session of the first South American-Arab Summit

    BRASILIA, May 10 (Xinhuanet) -- The first summit of South Americanand Arab nations opened here Tuesday, with the Common Market of the South (Mercosur) and the Gulf Cooperation Council (GCC) signing a frame agreement on a Free Trade Zone (FTZ) as the first concrete fruit of the summit.

    The summit, initiated by Brazilian President Luiz Inacio Lula da Silva, is aimed at strengthening political, economic and cultural ties between the two regions.

    "The challenge for us is to create a new and balanced world trade that benefits developing countries," Lula da Silva said at the opening ceremony.

    He demanded developed countries drop agricultural subsidies to ensure poor countries benefit from globalization.

    "We are ready to work together to seek opportunities in the fields of investment and trade," he said, adding that it will helpSouth American and Arab nations secure a good position in the world economy.

    Algerian President Abdelaziz Bouteflika called for international efforts to help end the conflicts between the Palestinians and Israelis.

    "Our meeting is extremely important and should pay attention tothe grave crises that threaten world peace, and we should adopt a joint action to contribute to their solution," Bouteflika said.

    The situation experienced by the Palestinians represents "a denial of justice" that can no longer be tolerated, Bouteflika said to long applause from the delegates.

    "We must find a definitive solution for everyone to do his best,to get Israel to submit to international law and accept the negotiated peace," he said.

    Stressing multilateralism and the authority of international institutions, Peruvian President Alejandro Toledo said the meetingconfirms the process of approximation between South Americans and Arabs, united by a set of common interests to achieve the development and welfare of the two regions.

    "We recognize that our community represents a complex example of integration and political cooperation, but we have, without a doubt, reached a basic consensus," he said.

    Amr Moussa, the Arab League's secretary general, said at the opening ceremony that the summit is not against anyone. "This summit, in its idea, its initiative, is not directed against anyone."

    According to the AL chief, the Arab countries also expect the summit to back war on terrorism.

    During the first day's summit, Mercosur and the GCC signed a free trade agreement, paving the way for negotiations on the establishment of an FTZ linking the two groups.

    Mercosur groups Brazil, Argentina, Paraguay and Uruguay and theGCC comprises Saudi Arabia, Bahrain, Qatar, the Untied Arab Emirates, Kuwait and Oman.

    Speaking at the signing ceremony, GCC Secretary General Abdulrahman al-Attiya said the signing of the agreement laid a solid foundation for the conclusion of a Free Trade Agreement in the future.

    In another development, Brazilian, Argentine and Venezuelan presidents have expressed their wish to accelerate regional integration of South America.

    Lula da Silva on Monday held talks with Argentine President Nelson Kirchner and Venezuelan President Hugo Chavez.

    Lula da Silva said that Brazil wants to invest more in Venezuela's oil exploration and speed up the construction of an oil refinery in northeastern Brazil.

    The Brazilian president also hoped that the three countries will speed up cooperation in oil exploration in Venezuela, the world's fifth oil exporter.

    South America's all 12 countries signed an agreement in December 2004 to establish the South American Community of Nations,a bloc which they wish will function like the European Union. Enditem