Japan and the Association of Southeast Asian Nations said Monday they had finished signing a deal to close out trade barriers between the world’s second-largest economy and the 10-member bloc.

The deal, which is set to come into effect later this year, was formally signed Monday by Malaysia, the last of the 10 members of the ASEAN bloc to sign off.

In a joint statement, Japan and the ASEAN said they looked forward to the early operation of the agreement, saying it would provide "a strong impetus for further invigoration of trade and investment in the region."

Under the pact, which was finalised in November, about 90 percent of trade between Asia’s largest economy and the ASEAN bloc will be tariff-free within 10 years.

It will be the first multinational free trade agreement (FTA) for Japan, which also has been seeking to conclude a flurry of bilateral pacts amid a breakdown in global trade negotiations.