But Kabigting said labour, environment and intellectual property were sensitive areas for the 10 members of the Association of Southeast Asian Nations (ASEAN) which are at different levels of economic development.

"These are sensitive areas to ASEAN but Australia and New Zealand want to have discussions on it in the FTA," he told AFP.

Kabigting said some ASEAN members do not have the infrastructure and laws to grapple with the three issues.

"They do not wish to have the issues in an agreement," he said, adding that ASEAN was opposed to any discussions.

"We are not offering any discussions. It is the preference of ASEAN not to discuss labour, environment and intellectual property," he said.

A senior ASEAN official echoed similar sentiments.

"We want to focus on trade, investment and services," he said.

Negotiations were launched last year towards creating a free trade zone known as AANZFTA which would embrace ASEAN, Australia and New Zealand.

ASEAN economic ministers will consult with their counterparts from Australia and New Zealand here next week on progress towards the deal.

Australian Foreign Minister Alexander Downer has said that economic unity would increase two-way trade between Australia and ASEAN members that already stood at 41 billion US dollars in 2005.

Australia has made a concerted effort to forge closer ties within ASEAN in recent years, last year dropping its opposition to signing the grouping's non-aggression pact in return for a seat at the inaugural East Asia Summit.

ASEAN groups Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

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