China and the Republic of Korea concluded substantive negotiations on a free trade agreement on Monday, a step closer to reducing trade barriers between the two nations and boosting integration in the Asia-Pacific region.

President Xi Jinping and his ROK counterpart Park Geun-hye confirmed the conclusion of the talks at a meeting on the sidelines of the Asia-Pacific Economic Cooperation meetings in Beijing.

The deal, which the two leaders pledged to finalize before the end of this year, will cover 17 areas including trade in goods and services, investment and trade rules, and topics such as e-commerce and government purchasing, the Chinese Ministry of Commerce said.

Observers said it is the first time that China has included government purchasing in a free trade agreement.

Of all the FTAs China has signed and is negotiating with individual countries, this is the widest-ranging, with the largest bilateral trade volume, the ministry said in a statement.

Differences remain over a few unspecified details before the agreement can be signed, according to a South Korean government statement.

Xi told Park during the meeting, "The establishment of the China-ROK free trade area is of landmark importance and will effectively promote regional integration of the Asia-Pacific."

Park said, "It is a day worth celebrating for both the ROK and China."

Hailing the agreement as good news for the global economic recovery, Park called for both countries to "quickly work out details and push swiftly for procedures to sign (the deal) and allow it to take effect".

The Chosun Ilbo newspaper said in Seoul on Monday that the deal opens the door for South Korea to a market with a population of 1.3 billion and will inject impetus to the country's flagging economy.

zhaoshengnan@chinadaily.com.cn

(China Daily USA 11/11/2014 page3)