Mr Obama has promised to nurture close ties with Mexico and with Latin American countries that complained of neglect by the United States after President George W. Bush's foreign policy focused heavily on Iraq and the war on terror.

With Mexico's drug violence exploding and amid fears that Mr Obama might seek changes to the North American Free Trade Agreement, Mr Calderon is eager for a meeting with the incoming US president.

Mr Obama's aides said the Calderon meeting was part of a long tradition of US presidents meeting with the Mexican leader before their inauguration.

The two leaders are to have lunch at noon (1am Singapore time) and then sit down for a working meeting.

Mr Calderon plans to meet Mr Bush on Tuesday.

Beyond following tradition, a senior Obama adviser also said Mr Obama 'feels very strongly about the US-Mexico relationship. This is obviously a priority.'

Mr Obama, who takes over from Bush on Jan 20, in a speech last May accused the Bush administration of being 'negligent' toward its friends in the Americas and pledged to renew ties with neighbours like Mexico.

Mr Obama's aides confirmed last week that he plans to make Canada the destination of his first foreign trip as president, but they have not said when the trip would take place.

One of Mr Calderon's priorities is to press Mr Obama to follow through on a US aid programme launched by Mr Bush in 2007 to help Mexico combat the drug trade. The Mexican president is battling drug traffickers blamed for killing 5,650 people last year.

'Shared challenge'
Mexican Foreign Minister Patricia Espinosa told a news conference on Friday that it was vital to push ahead with the US$1.4 billion (S$2 billion) drug aid package known as the Merida Initiative.

So far nearly US$300 million of aid has been freed up, but the first equipment is unlikely to arrive until late this year.

The Obama adviser, who spoke on condition of anonymity, said Mr Obama viewed the effort to combat drug trafficking as 'a shared challenge for both our countries.' '

As worried as we are about the northbound drug trade, we're also worried about the southbound weapons and cash flows that impact the drug war,' the adviser said.

In the May speech in Miami, Mr Obama praised Mr Calderon's tough stance against drug trafficking and vowed to support his efforts.

'We need tougher border security, and a renewed focus on busting up gangs and traffickers crossing our border. But we must address the material heading south as well,' Mr Obama said.

Mr Calderon is also concerned about Mr Obama's campaign promise to renegotiate North American Free Trade Agreement with Mexico and Canada.

The deal has greatly expanded Mexican trade with its powerful neighbour since it went into effect in 1994 but is seen by US unions as a cause of job losses in big industrial states like Ohio.

Mr Calderon told international business leaders at a summit meeting in November that restricting trade would only drive more Mexicans to emigrate illegally to the United States.

Mr Bush failed to deliver a promised immigration agreement with Mexico, and instead his administration began construction of a 1,070-km border fence designed to stem the tide of illegal immigrants.

Another major topic for Mr Calderon's meeting with Mr Obama is the deepening global economic downturn. The meeting comes as Mr Obama is engaged in intensive negotiations with the US Congress over a US$775 billion fiscal stimulus plan aimed at reviving the ailing US economy.

Mexico, which sends 80 per cent of its exports to the United States, is suffering a spillover from the US economy's woes, as layoffs at Mexican factories mount and families with relatives in the United States see a decline in remittances. -- REUTERS

Also read:
Obama will tackle Mideast