ASEAN studying free trade pact with EU: Rafidah

ASEAN studying free trade pact with EU: Rafidah

The Association of Southeast Asian Nations is studying the
feasibility of a free trade pact with the European Union, a
Malaysian minister said on Thursday.

International Trade and Industry Minister Rafidah Aziz said
the study could take up to two years as it involved 25 European
countries and 10 ASEAN nations.

"If it's feasible, then which sectors should be given priority
and how should this be implemented? There is no time frame but
these things will take some time," she was quoted as saying by
national news agency Bernama after meeting a group of EU
parliamentarians.

Previous attempts to launch free trade negotiations were
stalled due to political wrangling over Myanmar -- a
traditionally divisive issue between the two international
groupings, she said, without elaborating.

The EU wants ASEAN to pressure Myanmar's military junta to
introduce democracy reforms. But ASEAN has resisted, saying non-
interference in members' internal affairs is one of its core
principles.

The EU is a key trading partner of ASEAN, with bilateral trade
totaling around US$110 billion each year.

ASEAN-EU trade accounted for 5.8 percent of total world trade
in 2003.

ASEAN groups Malaysia, Singapore, Thailand, Indonesia, the
Philippines, Myanmar, Vietnam, Laos, Cambodia, Vietnam and Brunei
with a combined population of over 500 million, making it an
attractive market.

Last year, ASEAN inked an accord with China to create the
world's biggest free trade area by removing tariffs for their two
billion people by 2010, and is planning similar deals with Japan,
South Korea, Australia and New Zealand. -- AP