Beijing, Aug 19: Terming ties with China as "very strong", visiting Australian Prime Minister John Howard has said that the two sides are discussing the framework of a free trade agreement that would further boost trade relations between the two countries. The economic and trade relationship between Australia and China is "very strong" and the two countries have a very complementary trade relationship, Howard told reporters.

China is Australia's third largest trade partner, and over the past six or seven years, Australia's exports to China have tripled.

Bilateral trade has exceeded 10 billion US dollars in the past three years. The two-way trade for the first half of 2003 saw a year-on-year increase of 31.9 per cent. Howard, who met with China's top leaders here yesterday, said that it is against this backdrop that the two sides have agreed to continue discussing a framework for a free trade agreement.

Officials from both sides will discuss the issue in Canberra in September and in Beijing in October, he said.

Bureau Report