US, Asean sign trade and investment agreement

The United States and 10 Southeast Asian nations signed a trade and investment agreement on Friday that opens the door to possible free-trade talks.
US Trade Representative Susan Schwab signed the Trade and Investment Framework Agreement in Malaysia with the 10 member states of the Association of South East Asian Nations (Asean).
"The can-do spirit of the members of Asean reflects the can-do spirit we are so proud of in the United States," Schwab told reporters after signing the pact.
"The TIFA with Asean represents an important step forward in the trade relationship with the region."
The United States is the biggest buyer of Asean goods and the region's largest foreign direct investor, pumping $8.7 billion into the region last year, Asean data shows. In 2004, US demand accounted for 14 percent of Asean exports. The framework agreement seeks to lower non-tariff barriers to trade and investment and is a necessary first step if both sides want to begin free-trade negotiations. Washington has played down this prospect, though it has a free-trade deal already with Singapore and is in free-trade talks with Malaysia and Thailand.
Work to build on the pact will involve development of an Asean single-window facility to smooth the flow of goods to the United States, and co-operation to foster trade in agricultural goods and new drugs, Malaysian Trade Minister Rafidah Aziz said.
Asean comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The group is also in free-trade talks with Australia and New Zealand. Parties to the talks said on Friday they hoped to reach agreement next year, in time for it to take effect in 2008.
They have isolated some thorny issues and asked negotiators to find creative ways to overcome them, but neither Asean nor the Australian and New Zealand ministers would comment on these issues at a joint news conference in Kuala Lumpur.
Malaysia and the United States are preparing for a third round of negotiations on their free trade deal in the week of September 18. At their last round in July, the United States laid out its minimum requirements for Malaysia to meet in a number of areas, including auto trade and government procurement.