The Association of Southeast Asian Nations (ASEAN) and China signed Sunday in Cebu another milestone agreement on trade in services as part of an effort to establish a Free Trade Area (FTA) by 2010.

The Agreement on Trade in Services of China-ASEAN Free Trade Area, which will enter into force in July 2007, aims at liberalizing services sectors ranging from computer, tourism, transport, telecoms to energy and environment so as to expand trade in services in the region.

Addressing the 10th China-ASEAN Summit in the Philippine resort island of Cebu on Sunday, Chinese Premier Wen Jiabao said the signing of the agreement "is another major achievement in China- ASEAN economic cooperation and trade.

"It will mark a key step forward in the building of the China- ASEAN Free Area and lay the foundation for full and scheduled completion of the China-ASEAN FTA."

Wen said after the implementation of the Agreement on Trade in Goods of China-ASEAN FTA in July 2005, tariffs on more than 7,000 ASEAN and Chinese products were lowered and the two-way trade volume in 2006 reached 168.8 billion U.S. dollars, up by 23.4 percent over the previous year.

The agreement on trade in services is the second major agreement concluded and signed under the Framework Agreement for Comprehensive Economic Cooperation Between ASEAN and China.

Leaders from the 10 ASIAN countries and Chinese Premier Wen witnessed the signing of the accord by the ASEAN economic ministers and Chinese Foreign Minister Li Zhaoxing.

Source: Xinhua