President Bush and Brazilian President Luiz Inacio Lula da Silva have pledged to seek conditions for fair international trade, including the elimination of many nations' agricultural subsidies.

The two presidents made statements to reporters after meeting in the Brazilian capital, Brasilia Sunday.

The presidents said they were encouraged by U.S. - Brazilian trade relations, which President Bush said he is convinced are equitable and fair.

Before the meeting, Mr. Bush told a gathering of young Brazilian leaders the United States is a friend of Brazil and that Washington wants Latin America to be prosperous.

The president arrived in Brasilia Saturday after attending the Summit of the Americas in Argentina, where delegates failed to reach consensus on creating a regional free-trade zone.

Brazil was one of five countries that said it is not willing to continue talks on a U.S. free-trade plan for the Western Hemisphere.