UPDATE 3-Thailand says new Asian trade deal to be signed in 2020

* Indian PM Modi does not mention RCEP at start of meeting
* Thailand says deal could be signed by February 2020
* Southeast Asian leaders appeal for progress in
negotiations
* Downgraded U.S. delegation to meet only three ASEAN
leaders

(Reledes. Updates with U.S. meeting with only 3 ASEAN leaders)
By Panu Wongcha-um, Patpicha Tanakasempipat and Liz Lee
BANGKOK, Nov 3 (Reuters) - Thailand said on Sunday that
Southeast Asian nations are committed to signing a pact by
February 2020 on forging what could become the world's largest
trade bloc, even after new demands by India dealt a blow to the
process backed by China.
Going into this weekend's summit of the Association of
Southeast Asian Nations (ASEAN) in Bangkok there had been hopes
of finalising negotiations this year on the 16-nation Regional
Comprehensive Economic Partnership (RCEP).
But the ASEAN chairman's final statement released on Sunday
night said the 10-nation grouping welcomed a "commitment to sign
the RCEP Agreement in 2020".
"This will significantly contribute to an open, inclusive
and rules-based international trading system and expansion of
value chains."
New impetus to reach agreement has come from the U.S.-China
trade war, which has helped knock regional economic growth to
its lowest in five years.
"The early conclusion of RCEP negotiations will lay the
foundation for East Asia's economic integration," said a
statement from China's foreign ministry after Premier Li Keqiang
met Southeast Asian leaders.
But Indian Prime Minister Narendra Modi did not even mention
the RCEP talks in opening remarks at a meeting with Southeast
Asian leaders and instead spoke only of reviewing the existing
trade agreement between ASEAN and India.
Nor did Modi mention the trade bloc, whose 16 countries
would account for a third of global gross domestic product and
nearly half the world's population, in Twitter posts after
meeting Thai and Indonesian leaders.
An Indian foreign ministry official later told a media
briefing "Let's take all the RCEP questions tomorrow."
Southeast Asian countries had hoped at least a provisional
agreement could be announced on Monday.
But India has been worried about a potential flood of
Chinese imports. A person with knowledge of New Delhi's
negotiations said new demands were made last week "which are
difficult to meet."

TRADE WAR IMPACT
Negotiators were meeting into the evening on Sunday to try
to come to an agreement, Thai government spokeswoman Narumon
Pinyosinwat told reporters on Sunday.
"We don't have a conclusion yet. Once there is one, it would
be announced," she said. "Commerce ministers are still
discussing outstanding issues. The signing is expected around
February next year."
Thai Prime Minister Prayuth Chan-ocha told the formal
opening of the ASEAN summit on Sunday that the 16 nations in the
potential trade bloc ought to come to agreement this year to
stimulate economic growth, trade and investment.
He highlighted the risks of "trade frictions" and "geo
strategic competition" in the region.
Some countries have raised the possibility of moving ahead
without India on forming a bloc that also included Japan, South
Korea, Australia and New Zealand.
But Thai commerce minister Jurin Laksanawisit told Reuters
on Sunday that India had not pulled out.
Another advantage for Southeast Asian countries from having
relative heavyweight India in the trade pact would be less
domination by China.
Longstanding rivals China and India, which fought a border
war in 1962, have clashed verbally in recent days over India's
decision to formally revoke the constitutional autonomy of the
disputed Muslim majority state of Kashmir. The U.S. decision to send a lower level delegation to the
summits this year has raised regional concerns that it can no
longer be relied on as a counterweight to China's increasing
regional might. Instead of President Donald Trump or Vice President Mike
Pence, the United States will be represented by Commerce
Secretary Wilbur Ross and White House national security adviser
Robert O'Brien.
The Thai spokeswoman said a planned U.S.-ASEAN leaders
meeting would instead be represented by only three leaders from
the 10-nation bloc meeting with the U.S. delegation.

(Writing by Matthew Tostevin and Kay Johnson; editing by Jason
Neely)