Clark still courting China

Wen Jiabao

Prime Minister Helen Clark is pushing to maintain the pace in New Zealand's race to become the first developed country to sign a free-trade deal with China.

She will spend two days in Beijing before travelling to Japan and will today deliver a strong message to Chinese Premier Wen Jiabao that the trade talks must result in a comprehensive deal delivering across-the-board results for New Zealand exporters.

The Prime Minister, who arrives at a time of heightened Chinese sensitivities on trade and regional security, will give a high-level political boost to the bilateral trade negotiations during her meetings with Mr Wen and President Hu Jintao.

New Zealand is at the head of a long queue of nations negotiating FTAs with China, which is putting huge pressure on diplomatic negotiating resources in Beijing. Negotiations are still not past the framework level. Helen Clark said it would be overly optimistic to expect the talks to be completed this year.

The Prime Minister had already telegraphed her position during a meeting with China's No 2, Wu Bangguo, in New Zealand last week. She told the Herald that Mr Wu said he had a clear message - No tariffs - to relay back to Beijing.

Helen Clark acknowledged that there was some resistance from the Chinese agricultural lobby to plans for further liberalisation in favour of New Zealand farmers. But she stressed the key issue was the length of any phase-in periods for tariff reductions.

She said China had put quite a lot of energy into the talks, "but I think they will be long, solid, slow and deliberate".

Both sides want to ensure any changes deliver value beyond that which will be achieved in the current World Trade Organisation talks.

The Prime Minister will endeavour to lift China's sights beyond agriculture in a lunchtime address focusing on New Zealand's transformation into a hi-tech player.

Commerce Minister Bo Xilai heads the list of Chinese officials who will attend the luncheon.

Top brass from Chinese oil and gas giant Sinopec - China's largest company, which is currently investigating exploration options in Taranaki - and Shanghai Baosteel, which is headed by Xie Qihua, one of the few women to lead a top company in China. New Zealand companies such as Fonterra and Air New Zealand will also be present.

Already China is exerting an influence on New Zealand's foreign policy. The Clark Government is anxious to ensure that New Zealand gets a formal invitation to join talks this year on the formation of a new East Asian Community, rather than face a lockout. Helen Clark will also emphasise the need for China and Japan, as the two most powerful East Asian nations, to be engaged with each other if peaceful prosperity is to be assured in the region.

North Korea is also on the agenda - China does not want nuclear weapons based on the Korean peninsula - with discussions over United Nations reform and China's Pacific policy.

Tomorrow Helen Clark will give an address on education issues before heading to Tokyo for the official ceremony for New Zealand Day at the Aichi Expo and further talks on regional movements.