Asian-wide free-trade zone

Pattaya, Thailand, (AFP)- Sixteen Asian nations representing nearly half the world's population will step up studies into a free-trade zone stretching from China to Australia.

Asian leaders will throw their support behind efforts to deepen and expand trade ties and reject protectionist measures.

Leaders of the 10-member Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia, India, and New Zealand under the East Asia Summit will ''explore ways and means to increase regional trade.''

The leaders said an East Asia-wide free-trade zone covering ASEAN as well as China, Japan, and South Korea would enhance the free flow of goods, people and capital. ASEAN has signed free-trade pacts with most of its trading partners, but it is pushing for a larger Asia-wide zone where both tariff and non-tariff barriers are torn down.

Economists say establishing an Asia-wide free-trade zone will be challenging and is a long-term project, but that networks of smaller accords could be a foundation to build on.

But some analysts have warned that dividing the world into trade blocs could undermine multilateral talks under the World Trade Organization.