NZ and China take first steps in free trade agreement

1.10pm

The first formal step towards a free trade agreement between New Zealand and China will take place on Friday when a trade and economic co-operation framework is signed.

Prime Minister Helen Clark and Trade Negotiations Minister Jim Sutton will sign for New Zealand while China's Commerce Minister Bo Xilai, who is visiting on his way to Asia Pacific Economic Co-operation talks in Chile, will sign for China.

The ceremony takes place at 3pm at the Sheraton Hotel in Auckland.

The framework was agreed in recent months.

In April, Helen Clark and Mr Sutton announced China and New Zealand were to open negotiations on a free trade agreement the Government said was potentially work hundreds of millions of dollars to the economy.

- NZPA