Economic ministers from Japan and 10 ASEAN members met in Brunei on May 5 to finalise the negotiations, according to sources from the Japanese Government.

Under the deal, which will come into effect in 2008, a free trade area (FTA) between Japan and ASEAN will be set up, enabling Japan to take the initiative on Asia's economic integration.

The deal stipulates that Japan will remove tariffs on industrial goods, and eliminate or reduce taxes on tropical fruit from ASEAN members. Rice, however, is expected to be excluded from the deal.

Meanwhile, ASEAN is likely to abolish tariffs on steel products and automobiles in 10 years, bringing economic benefits estimated at about US$33.3 billion to Japan.

ASEAN members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.