Reference: CPP20020517000014 Beijing China Daily (Internet Version-WWW) in English 17 May 02   [Report by Meng Yan]

		INTERNATIONAL ECONOMIC

	 Talks between China and the Association of Southeast Asian 
Nations (ASEAN) about a free trade area went smoothly, senior 
officials said yesterday.  	

  "We are confident the framework will be ready for Chinese and 
ASEAN leaders to finalize at their November summit," said a 
senior official with the Chinese Ministry of Foreign Trade and 
Economic Co-operation (MOFTEC).  	

  But the official declined to disclose details about their 
two-day negotiations, saying these are just working level talks 
and more substantial progress will be made at the China and 
ASEAN economic ministers' meeting in September.  	

  The third China-ASEAN Economic Senior Official's meeting, held 
in Beijing on Tuesday, set up a trade negotiation committee to 
hold in-depth discussions on the framework of a free trade area 
in the region.  	

  The trade negotiation committee hosted its first meeting in 
Beijing in the last two days.  	

  The committee said in a joint statement at the end of the 
meeting that it will try to have the framework finalized at the 
China-ASEAN summit in Cambodia at the end of this year.  	

  The framework is expected to cover a wide range of areas of 
co-operation in goods, services and investment.  	

  The framework will contain guidelines, principles, scope and 
modalities for establishing a free trade area, including early 
harvest, special and differential treatment and flexibility. It 
will also take into account different levels of development 
between ASEAN countries and China.  	

  Premier Zhu Rongji and ASEAN leaders agreed at the fifth 
China-ASEAN leaders' summit in November to set up a free trade 
area within 10 years.  	

  Chinese and ASEAN officials said the decision by Chinese and 
ASEAN leaders to establish a free trade area is a "historic 
milestone in economic co-operation between China and ASEAN" and 
"demonstrates strong commitments by China-ASEAN leaders to 
regional integration and economic globalization as they pursue 
peace and stability and prosperity in the region."  	

  A study by Chinese and ASEAN experts shows China's export to 
ASEAN will increase 55.1 per cent to US$10.6 billion and ASEAN's 
export to China will increase 48 per cent to US$13 billion after 
the establishment of the free trade area.	 

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