China and Iceland have wrapped up their feasibility discussions and are going to start formal negotiations on Free Trade Area (FTA), sources with the Ministry of Commerce said on Sunday.

According to the ministry's press office, the two sides exchanged views at their latest discussion in Reykjavik, Iceland, on a number of issues such as merchandise trade, service trade and investment, at a two-day meeting on the feasibility study.

The meeting, which opened on July 3, was held between the Chinese ministry and the foreign trade ministry of Iceland.

According the feasibility report, the FTA would improve the economy and living standards of both countries. It suggested an early start of formal negotiations between the two governments.

Iceland is the first developed country in Europe that has recognized China's market-economy status and is also the first European country to start FTA feasibility discussion with China.

China has so far established nine FTAs with 27 countries and regions and signed 334 regional trade cooperation deals. Currently, China is also in FTA talks with New Zealand, Australia, and the Gulf Cooperation Council.

Source: Xinhua