China and New Zealand have agreed to launch negotiations for a free trade agreement (FTA) as soon as possible.

President Hu Jintao and New Zealand Prime Minister Helen Clark made the announcement when they met over the weekend in Chile, where they are attending the Asia Pacific Economic Co-operation (APEC) summit in Santiago.

The announcement comes after a feasibility study has been carried out into a possible free trade agreement. The more than 100-page study concluded "significant complementarities" exist between the Chinese and New Zealand economies and that an FTA "would benefit" the people and economies of both countries.

To secure these benefits and build on the long and warm relationship between the two countries, the study recommends negotiations on an FTA between China and New Zealand covering goods, services and investment commence as soon as possible.

It does not identify major problems but identifies concerns about possible adjustments for producers from the removal of barriers to trade, and recommends their impact be taken into account in negotiations.

The study was launched in late May, the same month the two nations signed a trade and economic cooperative framework agreement.

According to the agreement, the two nations wish to kickstart negotiations early next year.

However, the negotiations may begin ahead of schedule. It is reported that the first round of FTA negotiations is expected to be held in Beijing in the first week of December. No date has been set for the completion of the negotiations.

Trade between China and New Zealand has thrived in past years, said the Ministry of Commerce.

From January to September, two-way trade volume surged by 40 percent on a yearly basis to US$1.86 billion, exceeding the full-year figure of 2003.

(China Daily November 22, 2004)