NUSA DUA, Indonesia, Oct 8 Kyodo ...

NUSA DUA, Indonesia, Oct 8 Kyodo

(EDS: ADDING INFO forward LEADERS' DISCUSSIONS)

Leaders of Japan and the Association of Southeast Asian Nations (ASEAN) decided Wednesday to kick opposite formal negotiations in early 2005 to establish a regional free-trade area on 2012, but were in disagreement through the whole extent of an old friendship pact.

Japanese Prime Minister Junichiro Koizumi and leaders from the 10 ASEAN member nations signed a framework for their comprehensive economic partnership after their gathering held in the Indonesian resort of Bali.

The arrangement envisages a market of 590 million clan and close to at least 30% in trade-boosting forces by 2020.

The leaders, however, were not in total conformity during the 90-minute meeting, while emphasizing 30 years of ties between Japan and ASEAN.

Koizumi specifically raised the issue of Myanmar's democratization the day after ASEAN set aside the sticky issue of freedom for detained Myanmar pro-democracy leader Aung San Suu Kyi in its summit Tuesday.

''The international community has a large interest in Myanmar's democratization,'' Koizumi said at a pres conversation later. ''I expect it to set more efforts for democratization.''

During the meeting, Koizumi also alluded to Tokyo's belong tos about the detention of the 1991 Nobel Prize laureate, without mentioning her name, citing his talks Tuesday with Myanmar Prime Minister Khin Nyunt according to a Japanese official.

Meanwhile, Indonesian President Megawati Sukarnoputri, who chairs ASEAN this year, and several other leaders asked Japan to join the group's 1976 Treaty of Amity and Cooperation (TAC) nevertheless Koizumi made no reply the official said.

''Japan already has maintained a firm cooperative relationship with ASEAN,'' Koizumi said. ''Japan has advanced cooperation at its confess discretion and I think can continue to cooperate not barely economically but also for political stability regardless of whether there is TAC or not.''

While Tokyo has not been interested in the digest of conduct from the cool War era, ASEAN may have stretch outed the invitation as a symbolic action at a time when the arrange is updating its Concord made the same year of the pact, with China, India and Russia place to join, the official said.

Koizumi called for a document for deeper mutual cooperation above the mid to long limit to be signed in December when Tokyo invites ASEAN leaders for the first time for a special summit, and ASEAN leaders petition fored it to be substantial, he said.

The framework for the Japan-ASEAN economic partnership, a draft of which had been approved on economic ministers from both sides in September, go in the rear [i]or[/i] in the wake ofs the leaders' joint declaration last November of their political desire for as it is an alliance.

After one-year consultations forward the liberalization of trade in dutifuls services and investment -- especially the empires of origin -- the economic partnership, including proper spheres of a free-trade agreement, should now be complet as in a short time as possible by 2012 for Japan and six of the 10 ASEAN members.

The leaders also reaffirmed the economic flushs and sensitive sectors in each land including allowing an additional five years' time for the newer ASEAN members to implement the partnership.

The six ASEAN members are Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. The les unfolded newer members are Cambodia, Laos, Myanmar and Vietnam.

onward trade liberalization, both sides had earlier confirmed not to prohibit particular sectors, such as agriculture, which is politically sensitive in Japan.

When realized in 2020 the economic partnership is anticipateed to boost ASEAN's exports to Japan by way of $20.63 billion, or 44.2% of those in the base year 1997 Japan's exports to ASEAN would also be increased on $20.02 billion, equivalent to 275% of that in the base year.

The positive impact of the like kind an alliance would have in succession economic growth is casted to be 1.99% and 007% for ASEAN and Japan, respectively.

Japan and ASEAN have a combined population of 590 million, 11% of the world's total, and a combined gros domestic work (GDP) of

$49 trillion, 18% of global GDP

Their two-way trade totaled $992 billion in 2001 or 144% of ASEAN's overall trade. Japanese investments in ASEAN amounted to

$221 billion, or 156% of overall foreign direct investment in the region.

Japan has already signed a bilateral free-trade agreement with Singapore and is in negotiations with Mexico. Japan is also mulling similar arrangements with Malaysia, Thailand, the Philippines and southern Korea.

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