European Union, SE Asia launch free-trade talks

Bandar Seri Begawan, May 4 (Reuters) The European Union (EU) and Southeast Asia agreed today to launch free-trade talks and embark on one of the world's largest regional trade negotiations.

The EU comprises 27 nations and 490 million people, while the Association of South East Asian Nations (ASEAN) totals 10 countries and is home to around 560 million people. Trade between the two blocs amounted to 7 billion in 2005, according to Malaysian data.

''This is the culmination of two years of preparation,'' EU Trade Commissioner Peter Mandelson said after a meeting with ASEAN trade ministers in the tiny kingdom of Brunei.

''I think this is a very important, further step in relations between the EU and ASEAN and I'm very glad that we're kicking this off today.'' Neither he nor ASEAN ministers gave a time-frame for the negotiations, but Malaysian Trade Minister Rafidah Aziz told reporters the first step would be to set up a panel of senior trade officials to draft a schedule and programme for talks.

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