Brazil and the European Union have signed a joint action plan to boost exchanges and cooperation.

The Joint Action Plan features proposals on promoting economic and environmental cooperation between the two sides.

Speaking at the Brazil-EU summit, Brazilian President Luiz Inacio Lula da Silva highlighted the importance of economic cooperation.

"Brazil and the European Union should work together to expand cooperation, as it will be conducive to the recovery of the world economy. Enterprises and employees from both sides will then enjoy the benefits. "

Despite the global financial crisis, bilateral trade between EU countries and Brazil has increased 26 percent, totalling 77 billion US dollars this year.

For his part, visiting French President Nicolas Sarkozy, called on the EU and Brazil to coordinate their financial policies. France currently holds the rotating EU presidency.

"The European Union and Brazil should take a common stance on the reform of the international financial system. Therefore, we have decided to adopt a common position at next year's 'Group of 20' summit in London."

European Commission President Jose Manuel Barroso asked Brazil to make continued efforts to fight deforestation and play a leading role in the fight against climate change.