Nov. 30 (Bloomberg) -- Japan, Australia, New Zealand and South Korea agreed to start tariff-cutting talks with the 10- member Association of Southeast Asian Nations, spurred by China's pact to create the world's most populous free-trade zone by 2010.

The two-year negotiations will begin next year under declarations signed today by leaders of the four countries at the Asean summit in Vientiane, Laos. Japan's will begin in April.

Chinese Prime Minister Wen Jiabao and Asean leaders yesterday agreed to begin cutting tariffs on $100 billion of goods, paving the way for a free trade zone in 2010 covering almost a third of the world's 6 billion population. The move has sparked similar efforts by neighboring nations eager to keep pace with China's rising economic and political influence.

Today's commitment ``sets out a clear path'' for an agreement between Australia, New Zealand and Asean, Australian Prime Minister John Howard told a news conference at the summit.

India, Asia's fourth-largest economy after Japan, China and South Korea, said it aims to start a free trade zone with Asean by 2016. An accord with Indonesia, Malaysia, Thailand, Singapore and Brunei, together accounting for four fifths of Asean's $737 billion gross domestic product, will begin as early as 2011.

An India-Asean free trade agreement would be ``fairly significant because it's only 9 percent of total trade,'' said Sunil Kant Munjal, managing director of corporate services at Hero Honda Motors Ltd., India's biggest motorcycle maker. ``If we create the right policy framework this will prove quite significant for both sides.''

Prime Minister Manmohan Singh has said India wants to triple trade with Asean to $30 billion in three years.

For Australia and New Zealand, making first-time appearances at an Asean leaders' meeting, a free-trade agreement could boost exports of goods from steel to milk powder. Asean buys 12 percent of Australia's exports and 8 percent of New Zealand's.

To contact the reporter on this story: Amit Prakash in Vientiane at aprakash1@bloomberg.net

Last Updated: November 30, 2004 09:50 EST