Preamble

The First Ministerial Meeting of the China-Pacific Island Countries Economic Development & Cooperation Forum (hereinafter referred to as the “Forum”) was held in Nadi, Fiji from April 5th to 6th, 2006. Ministers of the Commonwealth of Australia, the People’s Republic of China，the Cook Islands, the Republic of Fiji Islands, Federated States of Micronesia, New Zealand, Niue, the Independent State of Papua New Guinea, the Independent State of Samoa, the Kingdom of Tonga and the Republic of Vanuatu were in attendance.

1. General Principles

Article 1-1

Ministers commend the level of economic and trade co-operation between China and the Pacific island countries, and firmly believe that there is great potential for further development through the joint efforts of the Governments of the countries.

Article 1-2

Ministers note that China and the Pacific island countries have their own characteristics in economic development, and agree that a partnership of economic and trade co-operation should be established on the basis of equality, complementarity, mutual benefit and respect. China recognizes the characteristics of small economies of the Pacific island countries.

Article 1-3

Recognizing that China and the Pacific island countries share similar interests against the backdrop of globalization with its opportunities and challenges, Ministers believe that the establishment of the Forum will be conducive to cooperation between all participating countries for their mutual benefit in the field of trade and investment.

Article 1-4

Ministers agree that economic and trade cooperation between China and the Pacific island countries directed by this Guiding Framework shall not affect the process of regional integration, nor shall it hinder participating countries from implementing their obligations under any international treaties.

2. Cooperation between Governments

Article 2-1

Bilateral consultations between China and Pacific island countries shall be strengthened and improved through increasing high-level dialogues, exchange of visits, and consultations by senior officials, so as to identify new fields and methods of economic and trade cooperation, including discussion and establishment of mechanisms for consultation on multilateral economic and trade issues.

Article 2-2

More efforts shall be made to develop bilateral relationships and to revitalize cooperation in the economic field within the framework of existing bilateral consultation mechanisms.

Article 2-3

All mechanisms established within the Forum will be regarded as complementary to existing bilateral consultation mechanisms and will consistently enhance linkages between governments.

Article 2-4

China and the Pacific island countries agree to enhance cooperation, offer mutual support and coordinate positions, where possible, in the World Trade Organization and other multilateral trade-related areas.

3. Trade

Article 3-1

Expansion of trade between China and the Pacific island countries is the common goal and all countries shall endeavor to conclude and actively implement bilateral trade agreements consistent with international trade rules on the basis of equality and mutual benefit.

Article 3-2

The consultation mechanisms established within the Forum provide a platform for facilitating companies of China and the Pacific island countries, thereby fostering a favorable trading environment.

Article 3-3

Support shall be rendered to participating countries to hold specific product/service expositions and conduct other forms of cooperation to expedite the entry of their products and services into the markets of other participating countries.

Article 3-4

Communications among organizations and institutions，such as chamber of commerce, guild and forum of entrepreneurs，of China and the Pacific island countries, shall be promoted, and information exchanges about markets, commodities, services and trade shall be enhanced in order to increase bilateral trade.

Article 3-5

In recognition of the increasing importance of trade in services in respective countries, efforts should be made, in accordance with their national legislation, to promote the most favorable conditions for strengthening trade in services between China and the Pacific island countries.

4. Investments and Enterprises Cooperation

Article 4-1

Efforts shall be made to improve the investment climate of China and the Pacific island countries, and establish a legal framework which is conducive to investment promotion and protection. This should include the signing and implementation of bilateral agreements on investment promotion and protection and on the avoidance of double taxation.

Article 4-2

Efforts shall be made to encourage and facilitate enterprises to make investment and conduct co-operation in the fields of common interest and, through the establishment of all kinds of enterprises, make contributions to the economic development of China and the Pacific island countries.

Article 4-3

Advanced information technology shall be utilized to facilitate the exchange of trade and investment-related information between enterprises of China and the Pacific island countries.

5. Co-operation in Agriculture

Article 5-1

Mutually agreed measures shall be adopted in order to foster cooperation in the field of agriculture, including fishery, between China and the Pacific island countries.

Article 5-2

Enterprises shall be encouraged to enter into joint venture partnerships in agriculture, including fishery. Priority shall be given to encouraging cooperation in the study and formulation of agricultural development programs, transfer of technical expertise, construction of agricultural infrastructure, manufacture of machines for agricultural use, processing of agricultural products, fishery and plant farming as well as assessment and sustainable use and development of fishery resources.

Article 5-3

Experience of all countries in the development of agriculture，including fishery，shall be shared with a view to facilitating investment, technical cooperation and cooperation between enterprises.

6. Co-operation in Tourism and Transportation

Article 6-1

China and the Pacific island countries envision great potential in tourism and cooperation in this field shall be actively promoted. The experiences of all participating countries in the development of tourism shall be shared with a view to attracting and facilitating investment and cooperation between enterprises. Priority shall be given to promotion of land-based tourism including eco-tourism, and cruise tourism, co-operation in hotel construction, operation and management, and the processing and production of tourism handicrafts.

Article 6-2

The Pacific island countries shall be granted Approved Destination Status for Chinese citizens.

Article 6-3

Bilateral consultations between relevant institutions of China and the Pacific island countries shall be promoted in order to explore the possibilities of civil aviation services compatible with multi-destination tourism.

7. Co-operation in Finance

Article 7-1

Efforts shall be made to exchange experiences in the financial services sector, including banking and insurance.

Article 7-2

Co-operation between the Chinese financial institutions，including banking and insurance enterprises，and their counterparts in the Pacific island countries shall be enhanced.

8. Co-operation in Engineering and Infrastructure Construction

Article 8-1

Efforts shall be made actively to encourage and promote discussion among enterprises from China and the Pacific island countries to explore different types of co-operation in the fields of transportation, electric power, wind and solar power technology, telecommunication, water supply, water treatment and urban planning, and to facilitate co-operation in the above-mentioned fields.

9. Co-operation in Natural Resources

Article 9-1

Exchanges and co-operation in the field of natural resources shall be strengthened, and efforts shall be made to optimize utilization of resources on the basis of sustainable development.

Article 9-2

Co-operation in the sustainable exploitation and utilization of natural resources shall be promoted on the basis of mutual benefit.

10. Co-operation in the Development of Human Resources

Article 10-1

Co-operation in the development of human resources and personnel exchanges shall be promoted and improved to enhance trade and to foster mutual understanding and friendship between China and the Pacific island countries.

Article 10-2

Specific training schemes shall be made available in most fields involved in this Forum. Specific projects shall be put forward, and co-operation in the fields of education and vocational skill training, as well as language training, shall be developed.

11. The Subsequent Conferences of the Forum

Article 11-1

Ministers agree that the Ministerial Conference of the Forum shall be held at least every four years or such other period as the participating countries may agree from time to time.

Article 11-2

The 2nd Ministerial Conference of the China-Pacific Island Countries Economic Development & Co-operation Forum, which will examine and assess the achievements of the first conference, will be held in Beijing. Subsequent conferences will be held alternately in the participating Pacific island countries and in China.

This Guiding Framework is done in the English and Chinese languages, both languages being equally authentic, with each participating country keeping one original.

Nadi

April 5th, 2006

For the Government of the People’s Republic of China

Bo Xilai

Minister of Commerce

For the Government of the Cook Islands

Wilkie Rasmussen

Minister of Foreign Affairs and Immigration

For the Government of the Republic of Fiji Islands

Tomasi Vuetilovoni

Minister for Commerce, Business Development & Investment

For the Government of the Federated States of Micronesia

Akillino H. Susaia

Secretary of Economic Affairs

For the Government of Niue

Young Vivian

Premier

For the Government of the Independent State of Papua New Guinea

Sir Rabbie Namaliu

Minister for Foreign Affairs and Immigration

For the Government of the Independent State of Samoa

Hans Joachim Keil

Minister of Commerce, Industry and Labor

For the Government of the Kingdom of Tonga

Feleti Sevele

Prime Minister

For the Government of the Republic of Vanuatu

James Bule

Minister for Trade, Industry and Tourism