(SINGAPORE) - A proposed free trade agreement between the Association of Southeast Asian Nations and the European Union is "one of the most challenging" ASEAN is negotiating, the bloc's chief said Thursday.

ASEAN secretary general Surin Pitsuwan said his 10-member bloc and the EU had agreed on a schedule for discussions, but were having problems making headway due to the complexity of the talks.

"They are exploring possibilities on various sectors with various approaches but because of the diversity on both sides, the two sides are working very, very hard trying to find some common ground to move forward," he said.

"I think with the EU, it is probably one of the most challenging agreements that we are negotiating," he told a news conference.

Surin did not elaborate on the difficulties, but diplomats who asked not to be named have said the fact that military-ruled Myanmar is a member of ASEAN could complicate the negotiations.

They said little progress has been made since ASEAN and the EU agreed to launch free trade talks in May 2007.

Western countries including EU member states have hit out at Myanmar's junta for its treatment of detained democracy leader Aung San Suu Kyi, and alleged widespread human rights abuses against pro-democracy activists.

ASEAN on Thursday announced it has concluded free trade pacts with India, as well as with Australia and New Zealand. It has already inked market-opening agreements with China, Japan and South Korea.

Surin said talks for a free trade accord with another key ASEAN trading partner, the United States, were still at a preliminary stage.

The ASEAN bloc includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

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