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China and New Zealand agreed yesterday to begin working toward a trade and economic cooperation agreement, New Zealand Prime Minister Helen Clark said.

Clark, who said a ministerial meeting next month will start negotiations, announced the deal during a joint press conference with Chinese President Hu Jintao after the two leaders met in the northern city of Auckland.

"It is to be hoped that (further talks) will get us to the point of signing a formal China-New Zealand trade and economic cooperation agreement," Clark said.

China was "ready to work with New Zealand to turn this into reality," Hu said.

The Chinese president said two-way trade between the nations in the first nine months of 2003 was 30 percent higher than the same period in 2002, after growing at an average annual pace of 12 percent during the past 10 years.

Clark also welcomed China's "very strong leadership" in solving the Korean nuclear issue and "its commitment to a resolution by dialogue."

In August, Beijing hosted six-nation talks aimed at resolving the standoff over North Korea's nuclear weapons development.

Both leaders emphasized the close economic and social links between the two countries.

New Zealand in 1973 was among the first Western countries to establish diplomatic relations with China.

Before the leaders' talks, Chinese and New Zealand officials signed five trade and technical agreements.

Two of the deals expand access to China's market for New Zealand meat exports, which were worth more than NZ$130 million (US$79 million) in 2002.

A science and technology accord between the counties broadens cooperation in areas including forestry research, environmental protection, Antarctic research and health.

The three others reduce barriers to trade, strengthen consular relations and enable mutual recognition of academic credentials.

China is now New Zealand's fourth-biggest trading partner, with two-way trade in the year ending in May 2003 worth NZ$4.1 billion (US$2.4 billion).

With China's economy growing at around 8 percent annually in recent years, its neighbors are eager to promote economic ties.

Hu signed an economic agreement during a visit to Australia last week.

The first step toward a deal with New Zealand will begin with a meeting of the China-New Zealand joint commission on trade and economic development in late November.

Hu arrived in Wellington on Saturday afternoon on a three-day state visit to New Zealand.

Last night Clark hosted a dinner for Hu, who is due to fly out of New Zealand today.

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