China-NZ FTA talks unlikely to finish

China-NZ FTA talks unlikely to finish

WELLINGTON: New Zealand's free trade talks with China are progressing but are unlikely to be completed this year as Beijing is wary about setting a precedent with the pact, Prime Minister Helen Clark said on Monday.

"The key issue is that we are the first Western economy to enter negotiations with China. Therefore there's high stakes for China and high stakes for us," Clark said on national radio.

"They have an eye on what precedents they set with us, just as we have an eye to getting a comprehensive and good deal that looks after our interests.

"That's why it will take a while."

Clark, who met Chinese President Hu Jintao last week during the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, described the negotiations as "going very well" but refused to put a deadline on the deal.

The prime minister said she was "perfectly happy" with the pace of the negotiations, which began late last year.

"The talks have gone well -- the fifth round is coming up. We got in the door first and we're optimistic," she said.

China is negotiating several FTAs with different countries, although New Zealand is the only developed nation involved. -- AFP