Brasilia, August 20 (PL-RHC)-- Brazilian President Dilma Rousseff received German Federal Chancellor Angela Merkel at the Planalto Palace on Thursday to evaluate the ways to reform bilateral ties and cooperation.

After attending a working banquet last night, shortly after arriving in Brasilia, Merkel held official talks with Rousseff in order to boost trade, collaboration in strategic sectors and mutual investments.

The two parties are expected signed letters of intent in the fields of innovation, research, mining, maritime affairs, education, health and food security, among others. Merkel's visit will contribute to establishing a mechanism of bilateral exchange that will allow strengthening political dialogue and fostering trade.

The director of the Europe Department at Brazil's Foreign Ministry, Oswaldo Biato, said the visit by the German chancellor, who is accompanied by seven State ministers and five deputy ministers, shows Berlin's interest in outlining a long-term agenda, focused on deepening ties with Brazil.

Rousseff and Merkel were expected discussed the way to negotiate a free trade agreement between the Southern Common Market (MERCOSUR) and the European Union (EU).

Germany is Brazil's major trading partner in Europe and the fourth in the world (only preceded by China, the United States and Argentina). Bilateral trade exceeds $20 billion.

Some 1,600 German companies operate in the Brazilian market, some of which have been present for more than a century, with investments totaling $30 billion.