Developments over China's free trade desire

Developments over China's free trade desire

It is recently announced that China and New Zealand will start talks over free trade agreement (FTA) next year. Labor and environmental standards of China are planned to be put on the agenda in talks. Besides, a trade and economic framework which will be the basis of the FTA is agreed upon and will become official in June 2004. Talks between the two nations began last October for the trade and economic framework, following a visit of the Chinese President to New Zealand. It is stated that in case a FTA is reached it will provide a significant trade and investment potential for both countries, contributing to their growth. According to forecasts particularly wool, fruit and vegetables, dairy products, forest products and home appliances sectors will be positively affected by such agreement. During 12 months, ended in June 2003, exports of New Zealand to China, its fourth major trade partner, accounted NZ$ 1.5 billion ($955 million) whereas imports totaled to NZ$ 2.7 billion ($1.7 billion). New Zealand is the first developed country that China accepted to negotiate for FTA. On the other hand, China aims to make a FTA with Association of Southeast Asian Nations (ASEAN) and is said to be in talks. Last year, China also held negotiations with India, but ended without a solution.