Key to push for Asian FTAs

Prime Minister John Key will use tomorrow's East Asia Summit to push for more free trade agreements across the region.

The EAS encompasses 16 countries including economic powerhouses like China, India and Japan.

However, the talks are likely to be overshadowed by a souring of relations between China and Japan. A three-way meeting between the two countries pencilled in for the sidelines of the summit has been cancelled.

New Zealand already has an agreement with China and has signed up to the ASEAN-Australia-New Zealand Free Trade area.

Mr Key said one of his priorities at tomorrow's meetings, in Hanoi, is to expand those trading links.

''While we've got the AANZFTA, we'd like to widen that out to the whole 16 countries in EAS, which includes some really big, heavy hitting countries that we are making slow progress with when it comes to FTAs. Obviously India, which is starting off, Korea where we are moving along, Japan is another very interesting market.''

He denied the summit was just a "talk fest."

Tensions have been running high between Beijing and Tokyo since Japanese authorities arrested a Chinese trawler captain in September near a disputed island chain in the East China Sea.

A furious Chinese government reacted by scrapping high-level meetings and bilateral events even after the captain was released.

Russia and the US are to attend the summit as guests, before joining next year. This is likely to change the dynamics of  the forum.

But Mr Key insisted New Zealand still has an important role to play.

''New Zealand is an important catalyst. Asia wants to see the world open up and these are quite free countries where free trade is important to them.

''They want to get a larger slice of the world market. In that respect New Zealand, because it is such a free trader, helps advance the cause.''

He said the free trade agreement with China meant New Zealand ''brought a lot to the table.''

''China elected to do an FTA with New Zealand ...because it provided a blueprint to allow it to expand its trading operations and organisations around the world.''

The leaders will also discuss security issues across Asia. ''It's always very interesting to have those discussions,'' Mr Key said.

How to help Indonesia - one of the member states - in the wake of this week's devastating tsunami is also likely to be on the agenda. New Zealand has committed an initial $35,000.

Mr Key said the summit was an ''opportunity to catch up, get a bit of a sense of how we are faring post the global economic crisis.''

Today Mr Key will meet with Australian Prime Minister Julia Gillard, US Secretary of State Hillary Clinton and UN secretary general Ban Ki-Moon.