Cha-am, Thailand - The ten members of the Association of South-East Asian Nations (ASEAN) on Friday signed a free trade agreement with Australia and New Zealand, demonstrating the region's commitment to open markets at a time of growing protectionism in the West.

The free trade agreement (FTA), which will lower tariffs over a 12-year period, is deemed one of the most comprehensive yet signed by the ASEAN, Australia and New Zealand, covering trade in goods and services.

Australian Trade Minister Simon Crean and his New Zealand colleague Tim Groser signed the pact with their ASEAN counterparts at the 14th ASEAN Summit held in Cha-am, 130 kilometres south-west of Bangkok.

ASEAN has used this year's leaders' meeting to stress the region's opposition to trade protectionism, a trend that threatens the life-blood of South-East Asia's export-oriented economies as the global economy spins into recession.

"ASEAN is sending a strong signal that while the rest of the world is trying to protect themselves, we are integrating more," host country Thailand's Deputy Prime Minister Kobsak Saphawasuk said.

ASEAN has finalized the terms of reference for setting up an ASEAN Economic Community, that aims at turning the region in to a free trade zone by 2015.

"We believe we have to help ourselves," Kobsak said.

ASEAN, which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, has already started to reduce intra-regional tariffs but still excludes some sensitive items.

ASEAN-Australian trade is estimated at 60 billion dollars.

The FTA was negotiated last year. (dpa)