Three of Asia's biggest economies have agreed Sunday to commence their discussions for the likely establishment of a Free Trade Agreement (FTA) among them, which China believes would propel the region to further economic strength.

In a news briefing held in Beijing on Sunday, Chinese Premier Wen Jiabao noted that China, Japan and South Korea represent a region, the North-East Asia region, that is currently regarded by many economists as "the most economically vibrant region in the world."

"There is huge potential for our three countries to have closer trade and investment cooperation," Mr Wen said.

The Chinese leader met with his counterparts, Japanese Prime Minister Yoshihiko Noda and South Korean President Lee Myung-bak, and agreed in principle that further talks must be held among the three nations, which hopefully lead into a closer economic cooperation in the region.

"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," Mr Wen declared, with Mr Noda and Mr Lee beside him.

Together, the three countries accounted for trade exchanges that last year amounted to $US690 billion, based on official figures released recently by Beijing.

In the event that the three governments would succeed in forging a formal trade agreement binding their respective nations, Mr Wen is optimistic that eachof them would reap mutual benefits even as trade protectionism starts to emerge from other economic regions.

An official FTA among China, Japan and South Korea would prove crucial for the Asia-Pacific region to maintain its role as the growth hub of the global economy in the years ahead as the Asian Century further settles in, Mr Noda said.

The Sunday meet also won for South Korea a definite commitment from its North Asian neighbours that "no further nuclear tests or further provocation," from North Korea would be tolerated by the international community.

"What is most urgent (for us) now is to make all-out efforts to prevent the escalation of tensions on the Korean Peninsula," Mr Wen affirmed.

The commitments made by China, Japan and South Korea were lauded by a leading Chinese newspaper, calling their efforts as "a significant step, which will both promote trade and advance friendly trilateral cooperation."

Citing the lessons learned in the past and the different interests motivating the three countries, The China Daily strongly suggested "negotiations need to proceed slowly, step by step, in order to ensure all sides reap the benefits brought by free trade."