ASEAN FTA would make jobs, boost trade: Downer

ASEAN FTA would make jobs, boost trade: Downer

Associated Press Canberra

Australia's foreign minister said Friday that creating a free- trade zone with Southeast Asian countries would boost trade and create jobs.

Australia and New Zealand on Thursday welcomed a proposal by the 10-member Association of Southeast Asian Nations to seek negotiations later this year on a free trade pact.

On Friday, Foreign Minister Alexander Downer described the prospect of such an agreement as a tremendous opportunity.

"If we could create a free trade agreement between Australia and over 500 million people in ASEAN ... it would be very good for jobs in Australia, it would be very good for two-way trade," he told ABC Television.

While Australia has been an official partner of ASEAN for 30 years, its attempt to initiate free trade negotiations with the regional group in 2000 was vetoed by Malaysian Prime Minister Mahathir Mohamad.

However, Downer declined to say whether Mahathir's retirement last year had paved the way for talks. Mahathir had a testy relationship with Australia throughout his 22-year rule.

"Some people will say that of course," Downer told the television Friday. "It's very hard to identify any single issue."

He told ABC radio late Thursday that "there may have been other countries hiding behind the Malaysian veto as well."

ASEAN economic ministers have agreed to invite Australian Prime Minister John Howard and New Zealand Prime Minister Helen Clarke to a November summit in Laos to set up a schedule for the regional trade negotiations.

Australia and New Zealand signed a Closer Economic Relations free-trade deal in 2002, while ASEAN's 10 member states are also linked by a trade pact.

Australia has a free trade agreement with Singapore and expects to have one in force with Thailand next year. Both are ASEAN countries.

Australia and China have also begun preliminary work on a free-trade agreement.

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