China and Australia agreed to start talks on establishing a
free trade area following Australia's recognition of China's full
market economy status, according to a Memorandum of Understanding
signed in Beijing on Monday.
The two sides signed the MOU following Premier Wen
Jiabao's talks with his Australian counterpart John Howard at
the Great Hall of the People.
Trade between the two countries has grown rapidly. China is now
Australia's third largest trade partner, second largest export
market and second largest origin of imports.
During the talks, Wen spoke highly of bilateral relations,
citing their substantial development in recent years through
contacts between leaders of the two countries and cooperation in
such fields as economics, trade, education, culture, science and
technology.
"China and Australia are important countries in the Asia-Pacific
region and share wide-ranging common interests in safeguarding
regional peace and promoting common prosperity," Wen said. "In the
current volatile international environment, to further bilateral
overall cooperation is in the fundamental interests of the two
countries and the two peoples, and is conducive to peace and
development in the Asian-Pacific region."
Wen made a four-point proposal on the future development of
bilateral relations: enhancing political trust on the basis of
mutual respect, equality and reciprocity; advancing bilateral free
trade; expanding reciprocal and long-term cooperation; and
strengthening security consultations and coordination.
Howard said that Australia has decided to recognize China's full
market economy status and will enter negotiations on a free trade
agreement.
He acknowledged the comprehensive development of bilateral
relations in recent years, notably in the energy sector.
Australia is optimistic about the prospects for bilateral
cooperation, Howard said.
He also stated that the Australian government's adherence to the
one-China policy will remain unchanged.
Howard arrived in Beijing Monday afternoon for a working visit
to China. He is also scheduled to meet with President Hu Jintao and
top legislator Wu Bangguo.
This is Howard's fifth visit to China as prime minister. His
entourage includes his wife and government officials.
(Xinhua News Agency, China.org.cn, April 19, 2005)