ASEAN to Finish Smaller Trade Deals Amid Mega-Bloc Talk

KUALA LUMPUR, Aug 22, 2006 (AFP) - Southeast Asia wants to forge free-trade agreements with individual countries before considering an ambitious Japanese proposal for a giant Asian trade bloc, a senior official said Tuesday. Ong Keng Yong, the secretary-general of the Association of Southeast Asian Nations (ASEAN), said the group's economic ministers would discuss Japan's proposal with the country's trade minister, Toshihiro Nikai, during talks here Wednesday. However, he said they were more concerned with finishing off ASEAN free-trade agreements (FTAs) currently being negotiated with regional trading partners. "The idea is that our ASEAN-plus-one FTAs, like ASEAN plus Japan, ASEAN plus China, all these FTAs should come first, because we are still negotiating," Ong told reporters. "So we should finish this first and then we talk about the bigger thing called ASEAN plus six," he said. Japanese officials last week proposed the ambitious trade bloc embracing the 10-member ASEAN plus China, Japan, South Korea, Australia, India and New Zealand. The 16 nations last year formed the East Asia Summit, which is seen as a precursor to an eventual European-style free-trade community. Japan is this week expected to announce a fund worth up to 100 million dollars to advance the proposed East Asian economic partnership. Ong said that Tokyo was proposing a feasibility study into the creation of the East Asia trading bloc. "The Japanese proposed a study there and we are saying, not a bad idea. We want the study, show us the results and then if it's good, we can think about it," he said. Although signalling caution towards Japan's proposal, Ong said the mood was positive when ASEAN economic ministers touched on Japan's idea for a feasibility study during meetings Tuesday. "The mood is one of exuberance because people are interested in getting ASEAN to do so much. Now the question is whether we can chew all that is on our plate," he said. ey/sls/skj