Aust-China free trade talks set for May

TALKS on a free trade agreement between China and Australia will continue in May, Prime Minister Julia Gillard says.

The two countries agreed to start negotiations on the FTA in April 2005 and to date 18 rounds of talks have been held.

Ms Gillard told reporters in Beijing on Tuesday that she had told Premier Li Keqiang in their first formal meeting since he came to power in March that it was a "gap" in the relationship that Australia wanted to rectify.

Trade Minister Craig Emerson said Australia was seeking "high ambition" from the agreement, including agricultural tariffs and quotas, manufactured goods, services, temporary entry of people and foreign investment.

"We could have a low ambition FTA, like a trophy to sit on the national mantelpiece...but we want it to do work," he said.

Dr Emerson said that during the meeting with Premier Li in the Great Hall of the People on Tuesday, the Chinese leader had looked around the room asking: "Who is the FTA guy?"

"I said I'm the FTA guy," Dr Emerson said.

"The premier was very keen and spent some considerable time talking about the challenge but also the great benefits an FTA would bring."

Australia has six FTAs with New Zealand, Singapore, Thailand, US, Chile and the Association of South East Asian Nations (ASEAN).

The countries covered by these FTAs account for 28 per cent of Australia's total trade.

Australia is engaged in nine FTA negotiations covering a further 45 per cent of Australia's trade.

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