China, ASEAN to create trade bloc
 |  Cambodia's Hun Sen and Indonesia's Susilo Bambang Yudhoyono. |
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|  VIDEO | CNN's Aneesh Raman reports on preparations for the ASEAN summit
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(CNN) -- The leaders of 10 Southeast Asian countries have reached an agreement with China that will lead to the creation of the world's largest free trade zone.
Monday's accord is the first stage in a deal to create an open market of 2 billion people by 2010 to compete with Europe and the United States.
The Association of Southeast Asian Nations -- at the start of a two-day summit in Vientiane, Laos --also agreed to increase regional cooperation in security, politics, technology, medicine and transportation.
"This plan of action is formulated to serve as the master plan to deepen and broaden ASEAN-China relations and cooperation," according to a copy of the agreement's final draft obtained by The Associated Press.
ASEAN members are expected to sign a similar economic cooperation pact with India on Tuesday, AP reported. The group is also working are free trade agreement with Japan and South Korea.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Also attending the summit are the leaders of China, Japan, South Korea, India, Australia and New Zealand. It is the first time Australia and New Zealand have been invited to the event.
CNN correspondent Aneesh Raman said ASEAN "wants to an economic structure similar to that of the European Union."
While the main focus on the summit is regional economic cooperation, there are political issues simmering beneath the surface.
The political situation in Myanmar has been given early prominence by Thailand's Prime Minister Thaksin Shinawatra, who will meet Myanmar's Foreign Minister Nyan Win on Tuesday for a working breakfast, Reuters reports.
Thaksin wants ASEAN leaders to address the lack of progress in political reform by Yangon -- a continual source of embarrassment for the association, officials said.
"Prime Minister Thaksin will suggest at the summit that ASEAN leaders should have an informal discussion on Myanmar to learn about the latest situation there ... But that request would need to be agreed upon by Myanmar," Reuters reported chief Thai spokesman Jakrapob Penkair as saying.
Many of ASEAN's other members -- including Malaysia, Singapore and the Philippines -- have criticized some of Myanmar's actions, especially the detention of opposition leader Aung San Suu Kyi.
Discussion of internal political issues among ASEAN members is a touchy subject with leaders generally confining themselves to less contentious economic and trade issues.
Last week, Thaksin had threatened to walk out of the ASEAN summit if the issue of Muslim unrest in Thailand's south was raised.
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Associated Press contributed to this report.
