The free trade agreement (FTA)between Israel and the Mercosur bloc, which groups Brazil, Paraguay, Uruguay and Argentina, will take effect on April 4, Brazilian President Luiz Inacio Lula da Silva said Monday.

Israel is the first non-South American country to sign an FTA with the bloc. With the agreement, bilateral trade is expected to increase threefold in the next five years.

Lula made the announcement during a trip to Israel, where he is seeking to further boost bilateral economic relations, especially in the technology field, reports reaching here said.

Lula said that Israel is an ideal partner to help Brazil develop its nanotechnology and pharmaceutical industries.

"We expect to strengthen the economic and business bonds between Israel and Brazil, since the trade between our two countries has increased significantly in the past few years," he told a business gathering.

Israeli President Shimon Peres said his country is happy to cooperate with Brazil in all sectors, including defense and space technology.