China and Chile have concluded the latest negotiations for a Free Trade Agreement (FTA), apparently enabling the two sides to finalize the agreement this year.

"The two sides have solved their differences through negotiation and reached agreement on trade of cargo," China's Ministry of Commerce said on its website.

The two countries are expected to sign the agreement on trade of cargo during the Asian and Pacific Economic Co-operation (APEC) meeting scheduled to be held this month in South Korea. The ministry said the agreement is expected to take effect as soon as possible.

Bilateral talks for the free trade pact had made good progress during the past 10 months, said Bo Xilai, Chinese Commerce minister.

"(The FTA) will yield closer economic and trade ties between the two countries," he said. "Markets open to each other will create more opportunities for enterprises on both sides and grant people more benefits."

Chilean Foreign Minister Ignacio Walker, who visited China during the latest round of negotiations, said the FTA will also increase co-operation between Asia and other Latin American countries.

The latest round of talks was held in Beijing from October 24 to 28 and was headed by Yi Xiaozhun, China's vice-commerce minister, and Carlos Furche, a senior official with the Chilean foreign affairs ministry.

Five rounds of talks have been held since January this year on market access, rules of origin, technological trade barriers and legal issues.

When the FTA comes into being, Chile will be the second trade partner with which China has a free trade process in cargo. The first was the Association of Southeast Asian Nations.

Chile has already signed free trade pacts with the United States, South Korea and the European Union.

Two-way trade between the two countries stood at US$4.7 billion in the first eight months of this year, reflecting a year-on-year increase of nearly 42 per cent.

China's exports to Chile grew 27.3 per cent to US$1.3 billion in the same period and its imports from the country jumped 48.6 per cent to about US$3.4 billion.

Experts predict exports and imports between the two countries are likely to witness further growth once the agreement is signed.

Source: China Daily