WELLINGTON - Trade Minister Phil Goff says there are "hard yards ahead" in free trade negotiations with China, which are due to be completed in 2008.
He told a China Business Forum in Auckland today the Free Trade Agreement (FTA) talks would enter a tenth round in January,and indicated the conditions New Zealand was seeking were not being matched by China.
"Our level of ambition for a strong agreement started at a much higher level than China's," he said.
"However, Premier Wen Jia Bao's comment during his April visit to New Zealand that the agreement should be comprehensive, high quality, balanced and of mutual benefit has been a useful reference point in negotiations."
Mr Goff said New Zealand wanted complete elimination of tariffs on all trade goods, though for sensitive products they were likely to be phased out over a number of years.
He said good progress had been made on that, although dairy was still an issue for China.
On services, investment and government procurement New Zealand would prefer to have Most Favoured Nation (MFN) status, but China was reluctant to make concessions, he said.
Negotiations were likely to centre on areas of key interest to both sides, rather than an across the board MFN.
"There are still hard yards ahead, but goodwill and a genuine desire on both sides for an outcome will, I believe, help us to reach an agreement," he said.
"Depending on the ambition reflected in that agreement, New Zealand exports are estimated to increase by between $260 and $400 million each year over 20 years above the level of growth which would otherwise have occurred."
