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SINGAPORE - The ASEAN regional bloc concluded free-trade pacts with India and Pacific neighbours Australia and New Zealand on Thursday, setting the stage for broader Asian economic integration, officials said.
They hailed the agreements as important milestones in Asia's efforts to link its diverse markets more closely, but also said they hope the regional deals will give impetus to the stalled Doha Round of global trade negotiations.
India and the 10-member Association of Southeast Asian Nations (ASEAN) announced they had concluded a deal for free trade in goods. The accord covers billions of dollars in trade and a market of 1.7 billion people.
"This is an important milestone for our region," said Indian Commerce Minister Kamal Nath. The pact follows six years of difficult talks.
Later, ministers also announced that ASEAN had concluded a comprehensive free-trade agreement with Australia and New Zealand.
The accord with the two Pacific nations was broader, covering not only merchandise trade but also services, investment, financial services, telecoms, electronic commerce, movement of people, intellectual property, competition policy and economic cooperation, a joint statement said.
"The ministers see the agreement as paving the way to enhancing the region's economic integration and acting as an impetus to deepen and broaden the trade and investment among the 12 participating countries," the statement said.
Talks began in March 2005. ASEAN, Australia and New Zealand hope to sign the deal in December once it receives domestic approval by the individual countries.
ASEAN's total trade in goods with Australia and New Zealand increased from 41.0 billion US dollars in 2006 to 47.8 billion last year, a statement announcing the pact said.
With the new agreements, the Southeast Asian bloc of about 550 million people has forged free-trade links with all the key regional economies. It earlier inked deals with China, Japan and South Korea.
ASEAN's deal with Japan covers goods, services and investments. The grouping is broadening its trade and services pacts with China and South Korea to also cover investments.
"We are in very good shape in terms of the progress of the overall ASEAN Plus One process," Indonesian Trade Minister Mari Pangestu said, referring to ASEAN's separate free trade agreements with major trading partners.
"We hope that this will lead... toward a really greater East Asia economic integration."
ASEAN's members have already cut tariffs to between zero and five per cent on 90 per cent of goods and are moving to remove non-tariff barriers.
This is part of ASEAN's plan to establish a single market and manufacturing base by 2015 in a bid to remain competitive, especially with the rise of India and China.
ASEAN Secretary General Surin Pitsuwan said the bloc's agreements with regional economies were an "important milestone" for wider Asian cooperation.
"I'm sure that this also will give some impetus, some encouragement, to the stalled Doha Round," Surin said, adding the ministers expressed hope global talks could move forward.
The so-called Doha Round of global trade talks broke down in July because of a dispute between India and the United States over agricultural tariffs.
With the prospects for a global trading regime in limbo, some officials said, negotiations for regional free-trade pacts such as those pursued by ASEAN could gain momentum and lead to a massive Asia-wide free-trade zone.
Other officials said this would not be easy.
While the building blocks for an Asia-wide agreement are there, ASEAN's deals with key trading partners are not equal, as the ones with Australia and New Zealand and Japan are more comprehensive than the others, Pangestu said.
- AFP/ir
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