Chinese Premier Wen Jiabao said Wednesday that New Zealand's recognition of China's market economy status is the objective recognition of China's tremendous achievements in reform and opening-up. 

New Zealand Prime Minister Helen Clark and Trade Negotiations Minister Jim Sutton announced Wednesday  in a policy statement that New Zealand and China will begin a Free Trade Agreement (FTA) negotiation next year. This is the first time China has agreed to negotiate an FTA with a developed country, Helen Clark and Jim Sutton said.

Under the agreement to work toward an FTA, New Zealand will recognize that China has established a market economy system. The statement said China had already developed a strong and vibrant private sector. Since China decided to move away from central planning a decade ago, its economy has grown by around 10 percent each year.

New Zealand has also agreed that it would not apply provisions in China's WTO Accession Protocol relating to anti-dumping.

The Chinese government highly appreciates New Zealand's efforts to push forward bilateral economic and trade ties, Premier Wen said.   "China has established a socialism market economy system after over two decades of reform and opening-up which have brought about huge achievements," he said.

An upcoming feasibility study and talks on a China-New Zealand free trade agreement will push bilateral economic and trade cooperation to a new stage, the premier said. 

The statement said that the agreement to begin negotiations on an FTA will be formalized when the Trade and Economic Cooperation Framework (TECF)is signed in June. The Framework lays the foundations for future economic and trade cooperation between the two states. It was finalized in negotiations in Beijing last week. Enditem