ASEAN urged to make progress on trade deals

MANILA (AFP) - Southeast Asia must ratify free trade deals with China and South Korea, and make progress on a similar accord with Japan, as the bloc prepares its own free-trade zone, the Philippines said Monday.

At a key meeting of the Association of Southeast Asian Nations (ASEAN), Philippine President Gloria Arroyo urged the bloc to make progress on those deals as it tries to meet a 2015 target for an ASEAN free-trade zone.

"We are actively strengthening our economic linkages not only within the region but also with our dialogue partners," she said in her opening address to the gathering.

"Deepening integration on this level would mean completing and eventually forging the individual FTAs (free-trade agreements) ASEAN is currently working out with these (three) countries," Arroyo said.

She said the deals with China and South Korea were in the "final stages" awaiting ratification by ASEAN's 10 member nations and called on both sides to work harder to iron out a similar deal with Japan.

ASEAN and Japan have long negotiated a trade pact but have failed to reach an agreement. The Japan-ASEAN talks have generally shown little progress as Tokyo officials aimed to strike a "comprehensive" agreement.

"Negotiations on the FTA with Japan also hold a lot of promise," Arroyo said. "We hope that those involved in the negotiations would find the resolve to agree on the final points."

Japan and ASEAN have promised to sign a deal in November but fears over fast-track negotiation measures have risen among Japanese businesses, which are jittery over China and South Korea's approach toward the region.

ASEAN and China signed a framework agreement on comprehensive economic cooperation in 2002 and are expected to form a bilateral free trade area by 2010, which would cover nearly two billion people.

A free-trade deal covering merchandise between South Korea and ASEAN, excluding Thailand, came into force in June. They want to reach a deal covering services and investment by the end of this year.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.