Asean, Japan 'agree trade pact'

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The Association of South East Asian Nations (Asean) has agreed a preliminary free trade pact with Japan.

The outline, signed during an annual meeting between Asean and Japan taking place in Manila, could be sealed as early as November officials said.

The deal that could cut tariffs on 90% of Asean products is set to further boost trade between the two parties, which hit $160bn (£79bn) in 2006.

Asean members aim to turn the whole region into a free trade zone.

'Economic integration'

Following the deal with Japan on Saturday, the country's Trade Minister Akira Amari said: "All the parties were able to finalise their lists for regional exchange of concessions for trade in goods."

He said it would be "one step towards furthering economic integration in the East Asian region".

Japan is a key Asean partner, accounting for 12% of the bloc's world trade in 2006.

On Friday, Asean members signed a free-trade blueprint for the area to be complete by 2015 or earlier - five years ahead of the original timeframe.

A free trade deal with South Korea is expected in 2008, and further deals are tipped to be signed with Australia and New Zealand in 2010.

Asean general secretary Ong Keng Yong said: "What we believe we should do is complete what we have on our table as soon as possible."

Safety concerns

As well as trade, members discussed the issue of product safety at the event following a series of recalled toys that had been made in China.

Bo Xilai, China's Commerce Minister, sought to defend Chinese goods saying 99% of the nation's goods sold to the US and Japan meet worldwide safety standards.

A series of product recalls of Chinese toys - ranging from pet food and toothpaste to toys - has pushed the issue into the spotlight.

Recently US toy firm Mattel recalled more than 18 million toys worldwide, after lead paint was found in Chinese made products.

At the Asean summit, members issued a statement saying: "The ministers agreed to urge relevant government agencies to properly deal with product quality-related cases."