Asean Prepares Framework For Asia-Pacific Trade Pact

KUALA LUMPUR – Asean has prepared a framework of general principles to steer the establishment of an Asia-Pacific free trade agreement (FTA). The "Aseean Framework for a Comprehensive Regional Economic Partnership" was discussed by Asean trade ministers at a one day informal meeting on Saturday in Kuala Lumpur for adoption by leaders of the 10-member group at their summit meeting in Bali next month. The framework sets out "principles under which Asean will enhance engagement with FTA Partners" with the aim of "establishing a comprehensive economic partnership," a copy of the document says. Asean has FTAs with Japan, China, South Korea, India, Australia and New Zealand. The latest move reflects a deep concern among some member countries that Asean could be sidelined by the Us-backed Trans Pacific Partnership that has attracted attention even as it is being negotiated, especially if Japan decides to come on board, Asean official sources said. As a result, Asean would like to hasten creation of a regional FTA that encompasses the region-with Asean playing a central role in the initiative. Nine countries involved in negotiations for the TPP are Australia, Chile, New Zealand, Peru, the US and four Asean members….Singapore, Brunei, Malaysia and Vietnam. Japan is considering joining the TPP negotiations. "The purpose [of the framework] is to achieve a comprehensive and mutually deneficial economic partnership agreement," Asian's draft says. "This agreement shall also involve a broader and deeper engagement with Asean's FTA partners and address new and emerging issues," it adds. The general principles in the framework also include differential treatment for Asean's less developed members, such as Vietnam, Cambodia, Laos and Burma.