IT is highly probable that few Singapore businessmen looking for a break in the fast-growing Chinese market thought about Asean - the Asean-China Free Trade Agreement (FTA), in particular.

The FTA, which will offer Asean businesses preferential duties and treatment in selling their products and services to the Chinese, will give them an edge over non-Asean competitors and help capture a slice of the lucrative and huge Chinese market.

Perhaps many have overlooked the Asean-China FTA because it is still in the making. There are still many complex issues to be ironed out between the 10-nation economic grouping and the rising economic giant - and a deal is not expected to be struck until 2010.

Yet talks on the Asean-China FTA, which kicked off in November 2001, has yielded enough common ground for both sides to meet and reach agreement in 2004 on an Early Harvest Programme that will speed up tariff cuts on certain products before the onset of the FTA.

In January this year, Asean and China pledged to grant Asean service providers preferential access into the Chinese market, 'beyond China's World Trade Organisation market access'.

Among China's specific schedule of commitment in services are computer and related, real estate, management and consulting services; construction and related engineering services; environmental services; recreational, cultural and sporting services; and transport services.

Most of these should interest Singapore, which is strong in supplying these services.

The Asean-China FTA is not the only FTA which the regional economic grouping is working on - and Singapore businesses can look forward to taking advantage of.

The Asean FTA, inked in 1992, is paving the way for a free trade area in Asean that's likely to boost intra-regional trade, shape up Asean's competitiveness and draw more foreign direct investments.

'The Asean region witnessed a growth of 18.2 per cent in total trade between 2005 and 2006,' says Thian Tai Chew, director of enterprise and trade group at International Enterprise Singapore. 'This double-digit growth translates into greater growth opportunities for our companies, especially when they leverage on the Asean and Asean-plus FTAs to access this vast regional market with a total trade volume of US$1,405 billion.'

Air transport, business services, construction, financial services, maritime transport, telecommunications and tourism will be some of the service sectors thrown open to Singapore investments.

'(Asean) members are generally committed to open up all industries for investment and granting national treatment by 2010 for Asean investors and by 2020 for all investors,' IE Singapore says.

The Asean-Korean FTA is the latest trade deal that the regional bloc is seeking to complete. Talks kicked off in 2005 and they have reached agreement on tariff cuts for trade in goods. But there are still the agreements in trade in services, investment and economic cooperation to thrash out.

According to IE Singapore, the Asean-Korea FTA, likely to be in place next year, will open up a larger avenue for tariff concessions for Singapore companies seeking to export to Korea, but cannot meet the Rules of Origin to qualify for tariff reductions under the Korea-Singapore FTA.

'For Singapore companies which already meet the Rules of Origin under the Korea-Singapore FTA, some products may enjoy better tariff concessions under the Asean-Korea FTA, since each FTA has its own tariff schedules,' IE Singapore says.

Also in the making are Asean trade pacts with Australia and New Zealand which are expected to be inked in 2009. And talks for an Asean-India FTA are expected to be completed in 2011, a year after the Asean-China FTA is wrapped up.

A free trade deal with Japan is scheduled to be done in 2012. Talks are underway for an FTA with the European Union, but it still at an early stage.