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China,New Zealand likely to sign FTA deal
By Dai Yan (China Daily)
Updated: 2004-05-29 12:03

China and New Zealand could sign a free trade deal as early as next year after taking the first formal step towards closer trade links.

It is the first time China has agreed to negotiate a free trade agreement with a developed country.

The two countries signed a Trade and Economic Co-operation Framework at a ceremony in Auckland on Friday.

The framework commits both countries to begin Free Trade Agreement (FTA) negotiations next year and lays the foundations for more economic and trade co-operation.

The agreement was signed by China's Commerce Minister Bo Xilai, visiting that country on his way to APEC talks in Chile, and New Zealand Trade Negotiations Minister Jim Sutton.

New Zealand and China will begin a joint FTA feasibility study. Sutton said that study was expected to be completed by the end of the year.

The study will include extensive public consultation and help shape New Zealand's position for FTA negotiations early in 2005.

Meanwhile, Bo expressed optimism at the opportunities open to both countries.

"I believe that is very possible and one thing to add is that to date we have not seen any big contradiction between the two countries," he said.

New Zealand was the first developed country to sign off on terms for China's accession to the World Trade Organization (WTO) and the first country to grant China market economy status.

"We are well aware of the huge and growing importance of China in the world economy and we see huge significance for New Zealand in entering close economic co-operation with the very huge market economy of China," said New Zealand Prime Minister Helen Clark.

China is New Zealand's fourth trade partner.

Customs statistics show trade between the two soared 30.5 per cent year-on-year in 2003 with a deficit of US$200 million on the Chinese side.

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