The signing ceremony of the Trade and Economic Cooperation Framework between New Zealand and China is held  in Auckland on 28 May.

Chinese Minister of Commerce Bo Xilai and New Zealand Minister of Trade Negotiations Jim Sutton put their signatures on the economic cooperation documents in Auckland, New Zealand.

Among the witnesses was New Zealand Prime Minister Helen Clark, who's been active in pushing for an earlier free trade agreement with China.

Helen Clark said that Minister Bo was a very senior representative of the Chinese Government.  "I'm pleased that he has arranged to be in New Zealand to sign the framework. This document lays the foundations for future economic and trade cooperation, by committing our countries to begin negotiations next year for a Free Trade Agreement.

"Closer trading ties between New Zealand and China offer substantial benefits to existing New Zealand exporters and will open up new opportunities for us in the primary, secondary and service export sectors.

"China is our fourth largest trading partner, taking $1.38 billion of goods and over $1 billion in services," Helen Clark said.

The TECF will include measures to promote economic cooperation and strengthen ministerial, business and academic dialogue. Once the TECF is signed, New Zealand and China will begin a joint feasibility study on a possible free trade agreement.

Mr Sutton said that study was expected to be completed by the end of the year.

"It will include extensive public consultation and help shape New Zealand's position for FTA negotiations commencing early in 2005."

China warmly embraces the move and New Zealand's recent formal recognition of China as a market economy.

New Zealand made the recognition early last month, despite disagreement from the United States and the European Union.