'Trade key to ASEAN ties'

'Trade key to ASEAN ties'

CANBERRA: Australia has defended its stand against signing a non-aggression pact with Southeast Asian nations, saying on Monday that the treaty would conflict with military obligations to the United States.

Prime Minister John Howard is the first Australian prime minister to be invited to a meeting of Association of South East Asian Nations, which is set in Laos to endorse formal talks on a free trade deal with Australia and New Zealand.

But Howard's refusal to sign a new ASEAN non-aggression treaty and comments that Australia reserved the right to make pre- emptive strikes on militant groups in other countries have prompted some regional leaders to suggest Australia should be excluded from future summits.

Howard said the Treaty of Amity and Cooperation -- which prevents ASEAN nations from interfering in the internal matters of other member nations -- had nothing to do with Australia's substantial trade relations with ASEAN members.

"Once again it is the substance of the trade relationship that matters rather than formal documents and formal processes," Howard told reporters in Sydney before leaving for Vientiane.

Foreign Minister Alexander Downer said the treaty would conflict with Australia's obligations to the U.S. under the key ANZUS military alliance.

The ANZUS treaty commits Australia and the U.S. to come to each other's aid in the event of attack. Australia invoked the ANZUS alliance for the first time to offer Washington help in the war on terror after the Sept. 11, 2001, attacks.

Downer said the ASEAN amity treaty contained a provision for governments to abstain from collective defense to serve the interests of one of the major powers.

Australia's two-way merchandise trade with ASEAN members is worth about A$32.8 billion (US$26 billion) a year, while trade in services totals A$10.2 billion. -- Reuters