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.
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 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.