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SYDNEY - Prime Minister Helen Clark says it is now up to China whether it concludes a free trade deal with New Zealand.
Shortly after her arrival in Sydney for this weekend's gathering of Apec leaders, The PM met with Chinese President Hu Jintao to discuss the concluding stages of free trade negotiations between the two countries.
There have been 14 rounds of negotiations since New Zealand became the first developed nation to begin free trade talks with the economic giant.
New Zealand had put its position on the table and it was now up to China to come back with a final answer about whether a deal could be done, she said.
Helen Clark said the two leaders did not discuss in detail any of the remaining areas still to be sorted out.
"Both sides know exactly what they are, obviously dairy is always an issue for us. It is our major export of goods, so we have to get a good deal around that. But I think that they now need within their system to be thinking of what they want to be in the final deal and how far they can move."
On the issue of citizens right to work in each other countries, the PM said there had to be some caution on New Zealand's part as China had more than 1 billion people and New Zealand just over 4.2 million.
While New Zealand could still "tweak" its deal, the ball was in China's court.
If it wanted, a deal could be finalised as early as Christmas, though April next year was more likely, she said.
The pair had also discussed areas where their ministers and officials have found it difficult to agree on the wording of joint policy statements between the 21 Asia Pacific Economic co-operation forum leaders.
Australian Prime Minister John Howard wants Apec to agree to a Sydney declaration on climate change but developing countries and developing countries which had signed up to the Kyoto Protocol are suspicious that is an attempt to undermine the treaty.
Australia and the United States had refused to sign the protocol because they did not want to commit to specified emission reduction targets unless developing countries did so as well.
Helen Clark said she agreed with Mr Hu that it was important for Apec countries to stay within the United Nation's sponsored negotiations on climate change policy.
It was important that the Sydney declaration was consistent with the United Nations work and the upcoming climate change conference in Bali.
"This can be a very important discussion on the road to Bali, but it can't substitute for Bali."
The PM said there were many different points of view amongst the Apec nations, and it was finding a way that everyone could contribute.
There have also been reports that the declaration might emphasise the use of nuclear power, which would run contrary to New Zealand law.
Helen Clark said nuclear power was not an option for New Zealand and it was a matter of ensuring that the declaration allowed for New Zealand to retain that position.
Apec statements are not binding on member countries, but they do have a symbolic meaning.
Member countries pledged to set up a Pacific rim free trade zone amongst developed nations by 2010, but this is unlikely to happen.
Apec trade ministers have thrown their weight behind concluding the stalled World Trade Organisation talks on reducing trade barriers and their leaders are expected to back that.
The 21 leaders from the Apec nations will meet on Saturday and Sunday under tight security conditions.
- NZPA
