As a first step Iran and Brazil agreed on Sunday to increase trade ties to 10 billion dollars in a year.
The agreement was made in a high profile meeting between President Mahmoud Ahmadinejad and his Brazilian counterpart Luis Inacio Lula da Silva who arrived in Tehran on Saturday night at the head of a 300-strong economic and political delegation.
Lula da Silva said Brazil will finance one billion Euros of food exports to Iran over the next five years to make trade between the two countries less dependent on foreign banks.
"It does not make sense that the trade between Iranian and Brazilian companies depends on the credit and goodwill of foreign banks," Reuters quoted Lula as telling Iranian and Brazilian traders.
On Sunday Iran and Brazil also signed 11 cooperation deals including oil and financial agreements.
The two countries also called for closer cooperation between Brasilia and Tehran at international stage.
The two presidents, while expressing dismay over the unjust global system, sought stronger cooperation between Iran, Brazil and other independent states in efforts to reform the dominant global structure which mostly favors global powers.
"The two countries should build a brilliant future through cooperation which would serve the interests of the two nations and other independent countries in the world," Ahmadinejad insisted.