Chinese minister says free trade deal likely

By FRAN O'SULLIVAN assistant editor


High-flying Beijing envoy Ma Xiuhong is "personally optimistic" that New Zealand and China will ultimately sign a free-trade deal.

Vice-Minister of Trade, Madam Ma, last night revealed that both countries had agreed to accelerate negotiations on the first stage towards an agreement - a trade and economic framework.

Speaking exclusively to the Herald, she said negotiations on the framework were expected to be finalised by the end of June. But a decision to launch a feasibility study on a free trade deal had yet to be taken.

Madam Ma said discussions had been "fruitful" and both parties had "taken a very big stride" to implement the consensus agreed to by President Hu Jintao and Prime Minister Helen Clark during Mr Hu's visit to New Zealand last October.

The New Zealand Government will send a delegation to China to further discussions and a reciprocal delegation will be sent to Wellington. Madam Ma also said that New Zealand and China were looking into ways to co-operate further within the World Trade Organisation negotiations towards achieving a successful conclusion to the Doha round.

Trade Negotiations Minister Jim Sutton was cautiously optimistic that a closer economic partnership could be negotiated between the two countries after yesterday's talks.

A partnership is seen as an essential step in eventually achieving a free-trade deal.

"There's no relationship more important for New Zealand in the 21st century," he said after meeting Madam Ma. "The atmosphere was very positive and constructive ... There was no hint of any difficulty.


"They are our fastest-growing major market and Madam Ma pointed out that since 1990 trade between us has grown at 17 per cent a year, which is very rapid indeed," said Mr Sutton.

"She said she anticipates the rate of growth will be even higher in 2004."

Mr Sutton said the framework under discussion could form the basis for a free-trade deal, although he was reluctant to speculate on when that might be achieved.

"It's something we're exploring. Of course, we hope to make as rapid progress as possible."

Mr Sutton said Madam Ma had pointed out that New Zealand, unlike some developed countries, did not have trade barriers that the Chinese Government considered discriminatory.

"We don't discriminate against China," he said.

"We can make more rapid progress [than other countries] in our trade and economic co-operation negotiations."

additional reporting: NZPA