The agreement will prepare the way for free-trade negotiations. The Tifa will focus on cooperation in technology development and exchange of know-how in industry, said Winichai Cham-cheang, deputy director-general of the department.

They plan to sign the agreement at the Asean economic ministers' (AEM) summit in Kuala Lumpur on August 21-22.

And inevitably the WTO's 149 members are looking for new ways to boost trade and investment whether or not it clinches a new global trade deal by the end of this year.

However, Thailand may be unable to sign the agreement since it is under a caretaker government.

"Thailand cannot sign the agreement with the US, but we can follow up on it when a new government takes over," said Winichai.

He explained that the delay in the Doha round talk had focused members more on bilateral and regional trade pacts.

However, Asean and the US have not yet fixed a date to start the first round of the FTA talks.

The US has many free-trade agreements to conclude with Asian countries, including South Korea, Malaysia and Thailand.

Winichai also pointed out that if the US succeeded in the talks with Malaysia, others Asean members might want to broach talks with the US as well.

The US is one of the world's largest markets, and the privileges accorded its trade partners would be the draw, he said.

The US has already concluded an FTA with Singapore.

The upcoming AEM meeting will formulate a new approach to increasing trade cooperation with other countries, Winichai said.

Meanwhile, the European Union may decide to begin its first round of free-trade talks with Asean this year.

The EU and Asean have already studied the prospect, and the EU will canvass member states for ideas, while Asean members will seek agreement at this AEM meeting.

Winichai added that Asean might start free-trade talks with Pakistan on the coat tails of the Asean-India FTA. A study by both sides saw mutual benefits in the idea, he said.

Petchanet Pratruangkrai

The Nation