Japan, Malaysia agree on free trade area

? Malaysia and Japan agreed Sunday to establish a free trade area covering most sectors of their economies, in a deal that could give Japanese automakers a greater share of the largest passenger car market in Southeast Asia.

Since launching the free trade area talks in January last year, the two countries had reached a basic accord on agricultural and marine products. But they failed to agree on Malaysia’s tentative pledge to fully eliminate tariffs on imported vehicles by 2015. Japan wanted an earlier deadline.

Malaysia’s International Trade and Industry Minister Rafidah Aziz said that emergency, last minute talks with Japanese Trade Minister Shoichi Nakagawa had resolved the differences by late Sunday.