China and Chile are expected to ink a free trade agreement (FTA) on investment and services next year, according to senior Chilean officials.

"We expect the two sides to sign the agreement for the second phase of a China-Chile FTA concerning opening-up of the investment and service sectors when Chilean President Michelle Bachelet visits China, likely in April," Alvaro Rojas, the visiting Chilean minister of agriculture, said on Friday.

The two countries reached consensus on the negotiating format and draft proposals during the third round of negotiations held in Beijing between July 9 and 11, according to the Ministry of Commerce. The fourth round will be held in Santiago at the end of September.

During the five-day visit to China, Rojas and his delegation of congressmen and business representatives met many Chinese senior officials.

They have signed two agreements with General Administration of Quality Supervision, Inspection and Quarantine on Chile's cherry exports to China and China's fruit exports to Chile. They also reached an agreement with the Export-Import Bank of China on supporting China's agricultural machinery exports to Chile.

Trade of farm goods accounts for only 4 percent of total bilateral trade, some $9 billion a year, so the two sides are poised to further promote growth in the sector, according to Rojas.

"We expect to see remarkable increases in bilateral farm trade within two years," he said, adding that quality supervision, inspection and quarantine are key factors for trade in agricultural products.

A China-Chile FTA on goods was signed in November 2005 and took effect last October. Bilateral trade has since grown over 90 percent year-on-year to $5.6 billion in the first five months this year.

China has also begun implementation of FTAs with the Association of Southeast Asian Nations and Pakistan, and is talking with 10 countries including Australia and Iceland. It is also working on feasibility studies with India, South Korea and Peru.