BANGKOK. Dec 11: The Association of South-easi Aslan Nations agreed Sunday to let its biggest member. Indonesia, protect 15 agri cultural products from tariff reduction until 2010. reports AP.

The compromise was an nounced after three days of Intense negotiations between officials of seven countries of the group s trading bloc, the ASEAN Free Trade Area.

Indonesia sought prolonged tariff protection even though the AFTA council supported the Idea that products should not be shifted into special categories that would give them special protection.

The council also an nounced it had received a final version of Vietnam's commitments to reduced tariffs, which will allow it take full part in AFTA's trading schemes.

Vietnam joined ASEAN in July this year. Its other members are Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. AFTA was established by ASEAN in 1992.

Rice, sugar, cloves and wheat flour are the four basic products allowed extended proteition at Indonesia's request. The council "noted the

sensitivity of these products for Indonesia said a joint press statement released al a news conference after the council's meeting.

State enterprises and mo nopolies still play a large role in the Indonesian economy, despite liberalization measures over the past decade. And friends or relatives of Indonesian President Suharto are heavily Invested In the sugar, clove and wheat flour sectors.

Because state enterprises are Involved, the tariff exclusions are allowable under the International trading regulations set by the General Agreement on Tariffs and Trade and the World Trade Organization, the council said.

The status of items In Indonesia's new protection category will be reviewed in 2003. the council said. Thal Finance Minister Suraklart Sathirathai said products would not be given tariff protection past 2010.

"in the spirit of AFTA we should try to accommodate each other's special needs .. on these minor items.” said Singaporean Minister for Trade and Industry Yeo Cheow Tong.

ASEAN Secretary General

Ajit Singh, speaking to reporters after the news conference. emphasized the relatively minor amount of regional trade covered by the 15 products. He said trade within ASEAN of the 15 products amounted to 40 million dollars annually, of a total trade among AFTA members of 111 billion dol

'A blow to setting up AFTA'

Reuter report says: Indonesia's decision to block the lifting of trade barriers on some key farm goods dealt a blow to ASEAN's bid to set up a free trade area tn the fastest growing region in the world, officials said today.

Jakarta persuaded its partners in the ASEAN on Sunday to keep its markets for several key farm products closed until 2003 and possibly up to 2010. delaying the full implementation of AFTA.

"Considering all the talk on free trade given by Indonesia. this is a setback for AFTA." a senior ASEAN official told Reuters, referring to Jakarta's push for free trade at the Asia-Pacific Economic Cooperation

(APEC) forum summit in Bogor Indonesia in 1994.

The setback < .imp a few days before ASEAN leaders meet in Bangkok on December 14-15 for a summit meeting to outline the future of the fastest-growing economies in the world.