NZ moves closer to Asia trade block

New Zealand has moved a step closer to inclusion in a major trade bloc after the Association of Southeast Asian Nations (Asean) decided to include it in an inaugural East Asian Summit.

Asean decided Australia, New Zealand and India should be part of the talks to discuss the creation of a new trading block. 


The move was welcomed by Australian foreign minister Alexander Downer. New Zealand Foreign Minister Phil Goff was in caucus and could not be initially be contacted.

Last December, Prime Minister Helen Clark clinched landmark trade talks and hopes of a diplomatic breakthrough in final hours of the Asean summit in Laos.

Top of the bill was an agreement to enter into trade talks with the bloc of 10 nations as Asean itself agreed to try and break down its internal trade barriers.

Asean comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Its foreign ministers yesterday decided to hold a summit with economic powerhouses China, Japan and South Korea.

Other countries can join the summit in Kuala Lumpur, provided they signed the Asean non-aggression treaty.

Prime Minister Helen Clark has indicated New Zealand would sign a symbolic non-aggression pact with Asean.

Australian Prime Minister John Howard has dismissed the treaty as a Cold War relic and said Australia would not sign it.

Some countries had wanted the inaugural meeting limited to Asean countries plus China, Japan and South Korea.

Malaysian Deputy Prime Minister Najib Razak said last month Australia, New Zealand and India should be excluded from the first meeting.

- NZPA