UPDATE 1-Brazil's Bolsonaro wishes Argentina well under new government

Brazilian President Jair Bolsonaro toned down his criticism of Argentina's new left-leaning Peronist government on Wednesday, saying he hoped the neighboring country will do well because it is Brazil's largest trade partner in Latin America.

"Argentina has a lot to offer us and Brazil has a lot to offer Argentina as well," Bolsonaro said in a speech to the CNI industry lobby. He earlier had called incoming President Alberto Fernandez a "red bandit" but adopted a more conciliatory stance since Fernandez took office on Tuesday and highlighted the importance of relations with Brazil in his swearing-in speech.

Brazil was the only country Fernandez mentioned specifically in his speech, Bolsonaro said. Yet the far-right Brazilian president, a former army captain turned politician, criticized the new Argentine leader for picking a defense minister who was not a military officer.

Bolsonaro broke with tradition by declaring early on that he would not attend Argentina's presidential handover. But he was convinced by Economy Minister Paulo Guedes and other senior members of his cabinet not to boycott the event, Brazilian media reported. At the last minute, he decided to send Vice President Hamilton Mourao.

Speaking to businessmen, Bolsonaro urged rapid ratification of the free trade agreement concluded this year between the European Union and Mercosur, the South American common market formed by Argentina, Brazil, Paraguay, and Uruguay. The deal's future has been in doubt due to opposition in some European nations and reservations expressed by Fernandez during the election campaign.

With two-way trade worth $27 billion last year, the two leading South American nations need each other. Argentina is the largest market for Brazilian manufactured goods, particularly autos, and its financial woes have weighed on Brazil's anemic economic recovery.