Countries in the region began discussions on Tuesday, part of a series of summits to create a shield against the global crisis.
The discussions at the beach resort of Costa do Sauipe, in the north of Brazil, began when host president, Luiz Lula da Silva, inaugurated the bi-annual summit of Mercosur, which was plagued by setbacks.
Leaders from throughout the region were also invited, including the president of Cuba, Raul Castro, who gave his colleagues a greeting from his brother, Fidel.
For the first time in history the leaders of Latin American and Caribbean countries will meet on their own to discuss integration.
The meeting, which will be held on December 16 & 17 at Costa de Sauipe, a resort close to the Brazilian city of Salvador de Bahia (in the northeast), will seek to promote greater cooperation between the various regional integration mechanisms.
Brazilian President Luiz Inácio Lula da Silva is flying in tomorrow to El Salvador to explore the possibilities of a trading alliance between Central America and the South American alliance, Mercosur.
Spokesman Marcelo Baumbach said Lula is slated to address a Brazil-Central America business forum tomorrow. Later he will attend the summit of the Central American Integration System, where he will meet with the region's presidents.
Guatemala's Foreign Minister Haroldo Rodas said that, at the Central American summit on May 29 in El Salvador, he intends to press for a commercial agreement with the South American common market, Mercosur.
Rodas said that President Alvaro Colom and the Brazilian leader Luiz Inacio Lula da Silva recently agreed to kick-start the stalled trade talks between Central America and Mercosur.