Japan, ASEAN mull trade pact

Japan, ASEAN mull trade pact

TOKYO (AFP): Japan and the Association of Southeast Asian Nations (ASEAN) will launch a study group next week to consider a free trade agreement, a report said Saturday.

It is hoped that the agreement could enable Japan and ASEAN to compete with China and regional trading blocs in Europe, the United States and South America, Kyodo news agency said quoting government sources.

The study group comprises government economic experts and is expected to submit its proposals to respective trade ministers by the end of this year.

Japan is currently in talks with Singapore to conclude a free trade agreement by the end of this year. Japan has previously favored multilateral trade pacts such as the World Trade Organization.

The deal with Singapore would be Japan's first free trade agreement.

The 10-member ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.