LOS CABOS, Feb 20: The United States and Mexico agreed on Monday to work together on oil and gas development in the energy-rich Gulf of Mexico, paving the way to end a long-running moratorium on their maritime border.

Under the deal, companies from the United States and Mexico would be encouraged to collaborate on projects over their Gulf maritime boundary but would be able to go ahead on their own if they do not find a partner.

Mexican President Felipe Calderon, signing the agreement with Secretary of State Hillary Clinton in the Pacific resort of Los Cabos, hailed the deal as a new sign of easing the historic distrust between the two countries.

“I will say this with great candour.—AFP