China, South Korea and Japan Seek Trading Pact BEIJING (AP) - The three largest East Asian economies agreed Sunday to find ways to strengthen regional trading ties and to work together to ease political tensions in the area. The countries - China, South Korea and Japan - said they would begin negotiations to establish a free-trade area that could help the region recover from the global slowdown. In addition, Prime Minister Wen Jiabao of China, President Lee Myung-bak of South Korea and Prime Minister Yoshihiko Noda of Japan agreed that their countries would work together to try to calm tensions on the Korean Peninsula, with Mr. Lee saying that any further provocations from North Korea would be unacceptable. A failed rocket launching by North Korea last month drew sanctions from the United Nations Security Council, and there are fears that the North is preparing to conduct its third nuclear test. China - a permanent member of the Security Council - is North Korea's closest ally. "The pressing task is to try our best to prevent tensions on the Korean Peninsula from escalating," Mr. Wen said. He urged all parties to "return to the right track of dialogue and negotiations." Mr. Noda said the three countries should work together to try to prevent further provocations by North Korea. The leaders at a summit meeting - which followed a meeting of the three nations" economic and trade ministers - also signed an investment agreement, paving the way for the setup of a free trade area among the three nations. Negotiations are expected to begin by the end of the year. The initiative comes amid a slow global economic recovery. Mr. Wen said the regional pact would benefit the East Asian countries at a time of rising trade protectionism. Trade among the three countries grew to $690 billion in 2011, and China is the biggest trade partner for South Korea and Japan, according to a Chinese government report on the relationship of the three nations. The investment agreement - the first such document among the three nations - will stimulate investment and promote trade, the Chinese Commerce Ministry said in a statement.