FACTBOX-Trade deals in the Asia-Pacific region

Published 11/13/2010, 09:50 PM
Updated 11/13/2010, 09:52 PM

Nov 14 (Reuters) - Asia-Pacific leaders were set on Sunday to embrace plans for balanced growth and free trade in the world's fastest growing economic region, but signs of discord resurfaced over how best to ensure global recovery.

Asia-Pacific Economic Cooperation (APEC) consists of 21 economies accounting for more than half of world economic output and the Free Trade Area of the Asia-Pacific (FTAAP) would, if realised, be the world's largest.

But frictions over currencies and geopolitical rivalries complicate the task of economic integration in a group that include poor countries such as Papua New Guinea, fast growing emerging markets such as Indonesia and Mexico, and the three biggest economies, the United States, China and Japan.

Here's a sampling of trade deals in the region:

ASEAN

Seven of the 10-member Association of South East Asian nations are also members of APEC -- Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The non-APEC members are Cambodia, Laos and Myanmar.

The ASEAN grouping, which includes 590 million people, already has free trade deals with China, India, Japan, South Korea, and Australia and New Zealand.

UNITED STATES

Washington has free trade pacts with six countries in the APEC region, including Canada and Mexico as part of the North American Free Trade Agreement (NAFTA). The others are with Australia, Singapore, Peru and Chile.

It signed a free trade agreement with South Korea in 2007 but the deal has languished in the face of opposition in the U.S. Congress. The two sides failed to revive the stalled deal last week when President Barack Obama and President Lee Myung-bak met on the sidelines of a G20 summit in Seoul.

Obama's administration sees the proposed Trans-Pacific Partnership (TPP) as a key element of its plan to double U.S. exports over the next five years. Eight Asia-Pacific nations launched formal negotiatIons on the plan this year.

Australia, Brunei, Chile, New Zealand, Peru, Singapore and Vietnam are the other members of the TPP, and the United States has said it planned to begin talks with Malaysia as a part of the broad initiative. CHINA

China, edging past Japan to become the world's second-biggest economy, has free trade pacts with ASEAN, Chile, Hong Kong, Macao, New Zealand, Pakistan, Peru and Singapore.

It has concluded deals with Costa Rica and Taiwan, and is negotiating with Australia, the Gulf Cooperation Council, Iceland, Norway and the Southern African Customs Union.

China has been studying the possibility of a pact with South Korea, India and Switzerland. Beijing, Tokyo and Seoul are also jointly studying a trilateral pact.

JAPAN

Japan already has free trade pacts with ASEAN, Brunei, Chile, India, Indonesia, Malaysia, Mexico, Philippines, Singapore, Switzerland, Thailand and Vietnam. It has been negotiating with Australia and the Gulf Cooperation Council. Talks with South Korea had been suspended for six years but trade ministers of the two countries recently agreed to prepare for resumption of talks.

Japan said in November that it would start talking with other countries about the proposed TPP trade pact, but stopped short of pledging to formally join negotiations, reflecting its worries over fallout for farmers. It is studying a possible pact with Mongolia, and is set to hold high-level talks with the European Union with the aim of launching trade negotiations next year.

SOUTH KOREA

Seoul has free trade deals with ASEAN, Chile, Singapore and Peru as well as trying to concluding the deal with the United States. It is negotiating with Australia, Canada, Mexico and New Zealand, and studying pacts with other countries, including China and Russia.

OTHERS

Australia, Canada, New Zealand and Singapore have each stitched together a string of trade pacts in the region and are actively negotiating more.

The European Union has also been focusing on bilateral deals with countries in Asia. Besides having signed a pact with South Korea, the bloc is currently in talks with India, Singapore and Malaysia, and less formal discussions with Vietnam and Thailand.

Sources: Reuters, Japanese Ministry of Economy and Trade, Office of the U.S. Trade Representative, Ministry of Foreign Affairs and Trade of the Republic of Korea, Chinese Ministry of Commerce, ASEAN, APEC Policy Support Unit. (Reporting by Yoko Kubota; Editing by Jonathan Thatcher)

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