Anzacs 'fly in formation' on Asean deal

Helen Clark is welcomed on her arrival at the Asean Summit in Vientiane yesterday. Picture / Reuters

New Zealand and Australia are poised to negotiate "in tandem" a free trade deal with the Asean group - rather than as joint CER partners.

Trade Negotiations Minister Jim Sutton said he expected the two countries to "fly in formation" once hard negotiations began on the ground-breaking deal, due to be launched in Vientiane, Laos, tonight.

"Obviously they know New Zealand and Australia will be keeping in close touch - but our export profiles and interests are not identical. Neither are our political relationships identical."

The formal announcement will be made after the historic meeting between Prime Minister Helen Clark and her Australian counterpart, John Howard, with the leaders of the 10 Asean nations.

There has been speculation that Howard's unwillingness to sign Asean's Treaty of Amity and Co-operation - a regional non-aggression pact - may prove a deal-breaker even before the "AFTA-CER" talks begin.

Clark will make it clear this country will consider the treaty favourably, although it is unclear whether the formal signing will take place at this year's Asean summit.

"I think all the relationships could survive us signing it and their [Australia] not," Sutton said.

"We have been moving from a position of thinking 'well we're not really part of Asean so we shouldn't be seen to be signing it' to 'yes it is pretty symbolic of our preparedness to engage more thoroughly and to respect their values'."

Sutton expects the agreement to be comprehensive. But he cautions the negotiations will not be easy as the Asean nations are at different stages of development.

"We are prepared to see different timeframes for different countries to give the least developed ones more time to adjust."

The Clark Government will not be dismayed if Asean opts to negotiate with New Zealand and Australia - separately - rather than as partners in the Closer Economic Relations Agreement.

A bid in the late 1990s to establish a "P5" deal between New Zealand, Australia, the US, Chile and Singapore fell apart when Australia withdrew out of concerns New Zealand's anti-nuclear stance might prove a deal-breaker with the US.

Helen Clark is also expected to disclose a new initiative to build stronger ties between New Zealand and Asean, which next year marks the 30th anniversary of a joint political relationship.

The Asean summit will also be the venue for New Zealand and Thailand to unveil their recently concluded free trade deal - the second such bilateral deal cemented by this country with an Asean member nation.