12/1/07 (The Star)CEBU CITY -  Asean and economic powerhouse China are set to open up each others services as part of efforts to establish a free trade bloc with the signing of an agreement between the regional grouping and China on Saturday.

The Asean-China Trade in Services Agreement will be inked in the presence of the 10 Asean leaders and Chinese Premier Wen Jiabao.

The deal will help firms gain access to Chinas multi-billion dollar service industries including banking, information technology and tourism.

The accord was to have been signed here last December but was held over when the Asean and the East Asia Summit were postponed, citing the approach of a typhoon.

The services agreement is one of the rmaining key items to be finalised by Asean and China, in addition to an investments agreement.

Both Asean and its dialogue partner are also expected to sign a plan of action for co-operation on information and communication technology and agriculture.

The grouping and China signed a framework agreement on comprehensive economic co-operation in 2002 and aim for a bilateral free trade arrengement by 2010.

An agreement on merchandise trade took effect in 2006 following an early harvest scheme of initial tariff cuts on meat, fish, dairy products, vegetables, fruits and nuts.

The Asean-China pact created the worlds largest free trade area of 1.7bil consumers with a combined economic output of about US$2 trillion (RM7.6 trillion) and total trade estimated at US$1.2 trillion (RM4.56 trillion).

Meanwhile, East Asia Summit leaders will sign a document encouraging free trade in biofuels and machinery which uses the alternative fuel.

No specific standards for biofuel, however, were drawn up because of technical concerns from some member countries.

The East Asia meet includes all 10 Asean members and Japan, China, South Korea, India, Australia and New Zealand. 

India has been known to be protective of its palm oil, which is one of the biofuel corps.

On another matter, the Asean Economic Ministers in a statement welcomed the progress in talks for the Asean-Korea free trade area.