PHNOM PENH, Nov 7: Japan on Wednesday signed a comprehensive economic partnership plan (CEP) with ASEAN, a move that could lead to the establishment of a free trade area (FTA) within 10 years.

Japan became the second country, after China, to sign an agreement with ASEAN to work towards establishing a free-trade zone.

An ASEAN-Japan FTA would create a combined market of 590 million people and economies worth $4.9 trillion.

“By the year 2020, the export value from ASEAN to Japan would increase by $20.63 billion which would be equivalent to 44.2 per cent of that in the base year 1997,” read the joint declaration released after the signing ceremony.

“The export value from Japan to ASEAN would increase by $20.02 billion, which would be equivalent to 27.5 per cent of that in the base year,” it said.

The declaration, signed by Japanese Prime Minister and the 10 ASEAN leaders, would permit any member of the regional grouping to engage in any bilateral framework with Japan or among themselves. — The Nation/Asia News Network