China and New Zealand have agreed to conclude their negotiations on Free Trade Area (FTA) in one or two years.

 

Visiting Premier Wen Jiabao and New Zealand Prime Minister Helen Clark made the announcement after their talks on Thursday. 

 

The deal should be "comprehensive, high-quality, balanced and acceptable to both," Wen, who was on an official visit to New Zealand, told a press conference.

 

The negotiations, which have been ongoing for six years, "has entered a critical phase" and will "touch upon certain sensitive issues, including agriculture and service sectors." However, these "are not insurmountable difficulties". 

 

He added that they can be overcome if the two sides adopt equality, mutual benefit, mutual compromise as guiding principles.

 

"This shows the resolve of statesmen and the willingness of the people," he said. 

 

Any FTA that New Zealand signs with China would be China's first with a developed country, and would add to the three "firsts" made by a developed country in relation to China. These include a bilateral agreement on China's WTO admission, recognizing China's market economy status, and launching FTA talks with China.

 

Wen "hopes New Zealand can strike more firsts in terms of its relations with China".

 

Clark listed other achievements from their talks: an annual meeting mechanism has been set up and the meetings will take place in either capital or on the sidelines of international summits and other multilateral events; close collaboration in APEC and at the East Asian Summit; new non-stop flights between Auckland and Shanghai; and New Zealand's participation in the 2010 Shanghai World Expo.

 

On the Taiwan issue, Clark reiterated that the New Zealand government observed the one-China policy and opposed any effort to separate Taiwan from the mainland. 

 

At a luncheon held in Wen's honor, Clark said: "We marvel at the sheer magnitude of China's growth, and the dramatic development that is unleashing. New Zealand can be both a contributor to and a beneficiary of China's growth and development." 

 

In New Zealand, the third-leg of Wen's four-nation tour, both sides have agreed to hone a relationship of all-round cooperation with mutual benefits and win-win outcomes. The two sides also agreed to jointly fight against transnational crimes, and expand mutual investment in agriculture and animal husbandry. 

 

Wen and Clark witnessed the signing of four cooperative documents including a treaty on mutual legal assistance in criminal matters, a cultural exchange agreement, a protocol on veterinary and sanitary requirements for edible deer exports from New Zealand, and a memorandum of understanding on cooperation in education and training. 

 

The education deal is a significant one because New Zealand is host to nearly 30,000 Chinese students studying at various levels. "Today Premier Wen and I have agreed on a new initiative for cooperation on high-level educational research and vocational training," Clark said. 

 

The signing of a commercial deal also drew wide attention. Fonterra, a giant of New Zealand's dairy industry, got the green light to form a China joint venture. It will take a 43 percent stake in the Chinese dairy company Sanlu. The exact value of the investment involved has not yet been revealed. 

 

William McQiu, a dairy industry expert, said: "The deal reflects that there are many opportunities for the New Zealand dairy industry to exploit their expertise in all areas of the business from milk collection to consumer goods in the vast China market." 

 

(Xinhua News Agency April 7, 2006)