China and New Zealand held the eighth round of talks aimed at establishing a free trade area last week and positive progress was made, said China's Ministry of Commerce on Monday.

If talks succeed it will be China's first free trade area with a developed country.

During the five-day meeting, delegates from China and New Zealand discussed trade in goods and services, investment and intellectual property rights.

They also discussed rules for determining the origin of goods as well as inspection and quarantine of animals and plants, said the ministry.

Chinese Premier Wen Jiabao visited New Zealand in April. The two countries' leaders exchanged ideas on free trade and decided to achieve an agreement within the next two years.

Also on the agenda during the eighth round of talks were measures to implement the results of the leaders' meeting and strengthening common understanding between the two parties, the ministry said.

The ninth round of talks are to be held in New Zealand this October, said the ministry.

New Zealand is the first developed country that recognized China's market economy status. China is New Zealand's fourth largest export market and trade partner, according to statistics from the ministry.

(Xinhua News Agency August 8, 2006)