Rousseff, the first Brazilian head of state to visit the Balkan country, is accompanied by leaders of state-run companies, such as Petrobras, Electrobras, airplane maker Embraer and the world's largest iron ore producer, Vale SA.

"Brazil considers Bulgaria a strong strategic ally in Europe and the Balkans, where we want to expand our presence," Rousseff said after talks with her Bulgarian counterpart Georgi Parvanov, adding that the two countries share "many common values."

Rousseff's father was born in Bulgaria and migrated to Brazil in 1929. The Balkan nation of 7.4 million celebrated her election as president last year, and her late father's hometown is preparing to give her a warm welcome Thursday.

"I am surrounded by a lot of love since I arrived, which makes me feel connected to the people in Bulgaria because of my genetic links and the memory of my father," Rousseff told reporters.

Rousseff said trade between the two countries expanded for the decade prior to Bulgaria joining the EU in 2007, but then declined. This was most apparent during the global economic crisis. Last year, it stood at $147 million, down from $307 million in 2006.

Rousseff said she intends restoring "the dynamics and multiple opportunities" previously enjoyed by Bulgarian and Brazilian businesses, highlighting opportunities in "agriculture, renewable energy sources, aircraft engineering, extraction and processing of oil."