The first round of China-Australia Free Trade Agreement (FTA) negotiations will begin Monday afternoon in Sydney.

Australian Trade Minister Mark Vaile and Wu Bangguo, visiting chairman of the Standing Committee of China's National People's Congress, made the announcement at the China-Australia Economic and Trade Cooperation Forum here Monday morning.

The two countries signed a Memorandum of Understanding in Beijing last month following talks between Chinese Premier Wen Jiabao and his Australian counterpart John Howard, agreeing to start talks on an FTA between the two countries.

"Today marks an historic period in our bilateral relationship. China is one of the fastest growing economies in the world and Australia is extremely well placed to take full advantage of this significant export opportunity," Vaile said in a statement.

"As from today, senior trade officials will map the way forward for the negotiations operating on the principle that they will be comprehensive, covering goods, services and investment, and be completed as a single undertaking," he said.

"The economic and commercial relationship is set to move into an exciting, new and more closely integrated phase," Vaile said.

In the last decade, China emerged as Australia's second largest merchandise export market and second largest source of merchandise imports, according to the statement.

Source: Xinhua