The leaders of China, Japan and South Korea, three of Asia’s biggest economies, have agreed to begin talks this year for a free-trade agreement.
The three leaders also signed a trilateral investment agreement, at a summit in Beijing on Sunday.
China is the biggest trading partner of both Japan and South Korea.
As with other free-trade agreements between countries, this one could still face long negotiations and trade barriers.
Trade boost
“The establishment of a free-trade area will unleash the economic vitality of our region and give a strong boost to economic integration in East Asia,” said Chinese Premier Wen Jiabao.
He also said the pact would help the nations at a time of rising trade protectionism.
Japanese Prime Minister Yoshihiko Noda said economic co-operation was essential to maintaining the Asia-Pacific region as the growth centre of the world economy.
Trade between the three countries reached $690bn in 2011, up from only $130bn in 1999, according to a Chinese government report.
Political tensions
The leaders also agreed on Sunday to work together to ease regional disputes and tensions, specifically on the Korean Peninsula.
North Korea conducted a failed rocket launch last month and there are fears it is preparing another nuclear test.
South Korea’s President Lee Myung-bak said the nations would not accept “further nuclear tests or further provocation” from North Korea.
“What is most urgent (for us) now is to make all-out efforts to prevent the escalation of tensions on the Korean Peninsula,” Mr Wen Jiabao said at a joint news conference.
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