Australia was set today to sign a friendship treaty with southeast Asia, formally acknowledging that its economic future is tied to the region after holding back on joining the accord for more than a decade.

Diplomats preparing for the inaugural East Asia Summit in Malaysia today reached a tenuous agreement on a grand plan to eventually create a cohesive economic community across the disparate region.

Former Malaysian leader Mahathir Mohamad today lashed out at Australia’s participation in next week’s inaugural East Asia Summit, saying Canberra will pressure Asian countries into accepting Washington’s views on issues such as trade and globalisation.

Australia’s foreign minister is expected to announce next week that Australia will sign a non-aggression pact with its south-east Asian neighbours when he attends an ASEAN security forum, an analyst said today.