The outspoken and charismatic presidents of Iran and Venezuela have signed a series of trade agreements and pledged to strengthen their alliance in defiance of America's disapproval.

The agreements, which include deals over oil and car production, were made during Mahmoud Ahmadinejad’s visit to the South American nation, where he was given a lavish military welcome and embraced by Hugo Chavez, his Venezuelan counterpart.

The visit comes ahead of a meeting of the UN General Assembly in New York later this week, where Iran is expected to argue that it has a right to continue its nuclear programme. Tehran says that it is enriching uranium for peaceful, civilian purposes, but has refused full access to international nuclear inspectors, and Western governments fear that it may be seeking to develop atomic weapons.

UN watchers are keenly anticipating the moment when Mr Ahmadinejad comes face to face with President Bush, which has criticised his country as belonging to an "axis of evil".

Iran is backing Venezuela’s bid for a seat on the UN Security Council, which would give Mr Chavez a platform to challenge Washington’s campaign for international sanctions against Tehran amidst the concern about its nuclear programme.

The two governments approved 34 accords in total, including agreements for Tehran to help Venezuela develop oil fields. The other accords ranged from building factories for petrochemicals and restoring a shipyard, to car and bicycle production. The two countries have also agreed to set up a $2bn investment fund.

Ties between Iran and Venezuela, both members of Opec, have previously focused on co-operation of both nations as major oil exporters, but the leaders have since explicitly emphasised their joint anti-US position.

"We have thoughts, objectives and interests in common," President Ahmadinejad said. "We must be united to be able to make these ideas reality with the aim of achieving justice and peace."

He praised Mr Chavez for his unrelenting opposition to the US, referring to him as "my brother…the champion, the leader of the struggle against imperialism.

"I salute all the revolutionaries who oppose world hegemony," he added, saying that the US represented "the tyrants of the world today."

Mr Chavez also pledged his support to Iran over the nuclear issue. "Iran is not making an atomic bomb," he said. "The ones that have many atomic bombs, and I repeat, many, are precisely the US imperialists and their allies in the world."

Mr Chavez has expressed an interest in partnership with Iran should Venezuela ever develop a nuclear programme of its own.

The US has sought to block Venezuela’s attempt to win the Security Council seat, supporting Guatemala instead ahead of a secret ballot next month.

Manuel Rosales, presidential candidate from the Venezuelan opposition, criticised the visit, saying that Iran was "trying to move forward with activities that go against world peace".

"In the name of the Venezuelan people, I want to protest the relations with Iran and its government," he said.

Freddy Pressner, president of the Venezuelan Confederation of Israeli Associations, expressed anger that the Iranian President had been welcomed into the country.

"We can’t be pleased or satisfied with the presence of someone who has said publicly that one solution (to the Mideast conflict) is the destruction of the state of Israel," he said.

The Venezuelan government said that its critical stance against Israel and close ties with Iran did not affect its relations with Jews, which it said remained open and positive.

Times Recommends

• Green activists 'are keeping Africa poor'
• 'Delayed justice' fear for OJ Simpson
• Sex and the sari