JAKARTA, Sept. 5 (Xinhuanet) -- The economic ministers of the Association of Southeast Asian Nations (ASEAN), Australia and New Zealand agreed here Sunday to recommend their leaders that negotiations on the free trade area be commenced in 2005.

    "The ministers agreed that the free trade area will be fully implemented within 10 years (from now) and the negotiations will commence early in 2005 to be completed in two years," Indonesian Industry and Trade Minister Rini Soewandi told a joint press conference after the ninth economic consultation of ASEAN, Australia and New Zealand.

    Leaders of the three sides are expected to meet in Laos later this year to endorse the recommendation.

    "If ASEAN, Australia and New Zealand achieve a higher level of economic integration, it will double approximately the size of an effective joint market and then will enable a significant increase in the level of specialization which can drive productivity," New Zealand Minister for Trade Negotiations Jim Sutton said.

    "I do see a win-win situation for all the participating countries, from the most developed like Singapore and Australia down to newer ASEAN members ... For Southeast Asia, the economic integration will drive for political stability and security," he added.

    According to a statement, the bilateral trade between ASEAN countries and Australia and New Zealand grew significantly by 33 percent to 27.56 billion US dollars in 2003 when compared to the previous year. In the period, both countries' foreign direct investment stocks in ASEAN rose to 3.1 billion dollars from 1.8 billion.

    ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, the Philippines and Vietnam. Enditem