The aim is to create a free trade area between the Mercosur and Pacific Alliance blocs.
Brazil and Chile want to bring Mercosur (Brazil, Argentina, Paraguay and Uruguay, with Venezuela temporarily suspended) and the Pacific Alliance (Chile, Colombia, Costa Rica, Mexico and Peru) closer a free trade area.
Starting in July, Brazil will hold the pro tempore presidency of Mercosur, while Chile will be heading the Pacific Alliance, Agência Brasil reports.
On Saturday, during the last day of the Brazilian president's visit to Chile, Jair Bolsonaro and Chilean President Sebastián Piñera ratified the terms of the free trade agreement between the two blocs.
The governments of Brazil and Chile plan to build a road corridor to connect Brazil's Midwest region to northern Chile's seaports, "including the bridge to be built between Porto Murtinho and Carmelo Peralta, the Paraguayan Chaco, and the Argentine northwest," the joint note specifies.