BEIJING, April 7 (Xinhua) -- China and New Zealand signed a free trade agreement, the first such pact between China and a developed country, on Monday.

    The deal was inked by Chinese Commerce Minister Chen Deming and New Zealand Trade Minister Phil Goff. Chinese Premier Wen Jiabao and his New Zealand counterpart Helen Clark attended the signing ceremony after over-one-hour bilateral talks.

    The signing and implementation of the agreement will "further the friendly and cooperative relations between the two countries, promote each's economic growth, and bring practical benefits to the two peoples," Wen said at the beginning of the talks.

    Wen descried the day of the signing as "a day of historical significance" and said the move "met the goal" the two countries set during negotiations.

    China and New Zealand formally launched the free trade negotiations in December 2004 and concluded the talks in December 2007 following 15 rounds of negotiations.

    According to the agreement, all goods exported from China to New Zealand will be tariff free from January 1, 2016 while tariffs on most New Zealand exports to China will be eliminated from January 1, 2019.

    Beyond trade in goods, the agreement covers the services sector, ranging from banking, environment, education and entertainment to construction and transportation.

    The FTA calls for up to 1,800 Chinese people to enter New Zealand each year to work in areas such as traditional Chinese medicine, language teaching, Chinese martial art training, tourism, auditing and food service.

    The FTA also sets up mechanisms for investment promotion and corporations in customs, quality inspection and quarantine, and the IPRs protection.

    "The agreement will push forward bilateral comprehensive ties of cooperation to a higher level, open up new opportunities in trade and investment, and help both countries develop a more open, stable and competitive business environment," said Wang Xinpei, the Ministry of Commerce spokesman.

    The pact not only facilitates the access of enterprises looking to the markets of China and New Zealand but also provide the consumers with cheaper and better products and services, Wang said.

    The deal came after 15 rounds of negotiations over three years as the bilateral trade expanded year on year by 26 percent to 3.7 billion U.S. dollars in 2007.

    The FTA agreement with China is the largest for New Zealand since the Closer Economic Agreement with Australia was signed in 1983.

    New Zealand is also the first developed country to recognize China's full market economy status.

    Clark, accompanied by a 150-member trade delegation, arrived here on Sunday afternoon, starting an official visit to China as guest of Wen.