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ASEAN studying free trade pact with EU
(AP)
Updated: 2005-11-24 16:52

The Association of Southeast Asian Nations is studying the feasibility of a free trade pact with the European Union, a Malaysian minister said 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 (euro94 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.



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