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JOC - Free trade talks could follow U.S.-Asean pact |
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The United States on Friday signed a trade and investment framework agreement with Southeast Asian nations, a move that could pave the way for negotiations on a free-trade pact.
The 10-member Association of Southeast Asian Nations, or Asean, signed the agreement after meeting U.S. Trade Representative Susan Schwab in Kuala Lumpur.
"The Asean region is a very high priority for not just U.S. commercial and economic ties but for the overall geopolitical interests and commitments of the U.S.,'' Schwab told reporters after the signing. On Thursday Schwab said Washington wanted to move the Asean-U.S. relationship to "yet another level.''
Trade between Asean and the U.S. grew 12.4 percent to $153 billion in 2005. U.S. foreign direct investment in Asean countries rose 13 percent to $80 billion in 2004.
Under the agreement, Asean and the U.S. will establish a ministerial dialogue to determine steps for expanding trade and investment relations.
Washington already has trade and investment framework agreements, or TIFAs, with almost every country in Asean, Schwab said. Such agreements were precursors to ongoing free trade talks with Malaysia and Thailand. The U.S. has a free trade pact with Singapore.
A free trade agreement with Asean as a group ``is always a possibility'' and today's agreement would be ``a positive step in that direction,'' Schwab said Thursday. ``Presumably there will be more bilateral FTAs over time and at some point potentially a regional or a knitting together of bilaterals.''
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