Thursday, April 06, 2006

[China] Wen hopes NZ free trade deal in two years

from NDTV Profit

By Kazunori Takada

WELLINGTON (Reuters) - Chinese Premier Wen Jiabao wrapped up a swing through the South Pacific on Thursday with a visit to New Zealand where he said bilateral free trade talks have stumbled but hoped a deal could be reached within two years.

Dozens of people protested against China's poor human rights record outside the New Zealand parliament building as Wen and Prime Minister Helen Clark agreed to step up the 16-month long trade negotiation to vice-ministerial levels.

Wen's six-day visit to the South Pacific saw him sign a deal for export of Australian uranium to fuel China's burgeoning power needs and in Fiji offer a sweeping economic package to small South Pacific island states with diplomatic ties with Beijing.

China and Taiwan have long battled for recognition in the South Pacific, with Australia, New Zealand and seven small island states recognising Beijing. Taiwan has ties with six islands.

China is New Zealand's fourth-largest trading partner. Two way trade is worth around NZ$5.5 billion ($3.37 billion) and New Zealand's main exports are dairy products and timber.

New Zealand is keen to gain greater access to China's agriculture sector and Beijing wants more access to New Zealand's manufacturing industry.

But Wen, who is due to leave early on Friday, said trade talks had encountered difficulties.

"Bilateral FTA negotiations have entered into a crucial stage and have encountered some difficulties, for instance in the agricultural and service areas," he told a news conference.

"These are not insurmountable difficulties," he said.

China has expressed caution about further opening its agricultural sector while New Zealand is concerned that cheap Chinese labour would put pressure on its manufacturers.

China has yet to sign a free trade agreement with a developed Western country and New Zealand rights advocates said a deal should not proceed without pressing China on human rights.

Wen conceded China's human rights record had shortcomings, but said his people would have greater freedom in the future as Beijing lifted more people out of poverty.

"As the saying goes 'a person living in poverty has no freedom to talk about'," said Wen. "This does not mean that we believe we have been perfect in regards to human rights records and we have our shortcomings."

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