Paraguay and Brazil agreed on Monday to simplify trade procedures in the Triple Frontier region among Brazil, Argentina and Paraguay, according to media reports reaching here.

Paraguayan Pr esident Nicanor Duarte Frutos met with his Brazilian counterpart Luis Inacio Lula da Silva in the Paraguayan capital Asuncion on Monday.

Underlining the signing of agreements to tackle foot-and-mouth disease and work together on bio-fuels and join defense mechanisms, Duarte Frutos said after the meeting that bilateral relations had enjoyed a new boost on Monday.

Duarte Frutos hailed the border plan, under which Lula will send his colleagues a plan to legalize and make more transparent trade between Ciudad del Este in Paraguay and Foz de Iguazu in Brazil, in no less than 30 days.

"This will solve the problem of thousands of citizens who make a living from Paraguay-Brazil trade," Duarte said.

Paraguay had proposed to Brazil to levy an 18-percent tax on border traders and fix an upper limit of 300,000 reals (about 150,000 U.S. dollars) on cross-border trade by any individual.