The Ministry of Commerce announced that China and Iceland began FTA talks in Beijing yesterday.

During this round, representatives from both sides will discuss trade in goods, services as well as other sectors, revealed Wang Xinpei, spokesman for the ministry. "The first round of talks should bring about some good results through strong joint efforts."

Wang revealed that the ministry sees the FTA as potentially giving a major impetus in terms of bilateral economic and trade relations.

Gunnar Snorri Gunnarsson, ambassador of Iceland to China, earlier said that the agreement would be comprehensive, catering to trade, services and investment.

After Iceland became the first European country to grant China market economy status, bilateral trade has enjoyed a brisk pace, with Chinese exports to Iceland reaching US$77.67 million last year, and imports from the Northern European country standing at US$39.99 million.

Turning to the FTA signed earlier this month between the United States and South Korea, Wang welcomed it as beneficial to the economic development of the Asian continent ad the whole world. He added that China is also striving to put forward an FTA plan with South Korea as soon as possible.

(China Daily April 12, 2007)