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South Korea, Japan & China leaders agree to start free trade

The leaders of China, Japan and South Korea agreed Sunday to start talks this year on a free-trade area, saying it would boost the economies of the entire region. Chinese Premier Wen Jiabao said closer regional economic integration in response to a slow global recovery and an overall rise in trade protectionism would help unlock new growth potential. "Northeast Asia is the most economically vibrant region in the world. So there is huge potential for our three countries to have closer trade and investment cooperation," Wen told reporters in Beijing. "The establishment of a free-trade area will unleash the economic vitality of our region and give a strong boost to economic integration in East Asia." China, Japan and South Korea combined have the world's largest economy, ahead of the European Union, when measured by purchasing power parity. Wen made the remarks after meeting in the Chinese capital with South Korean President Lee Myung-Bak and Japanes...