Visiting Chinese top legislator Wu Bangguo said in Sydney on Monday that the establishment of a China-Australia free trade area would be a significant development in bilateral relations.

As China and Australia are starting the first round of talks on the Free Trade Agreement on Monday, Wu told a forum on enhancing bilateral economic cooperation that the FTA will help expand bilateral cooperation in trade, investment and services.

"The China-Australia FTA is a significant development in our relations...It will provide even greater horizon for our economic partnership," said Wu, chairman of the Standing Committee of China's National People's Congress.

Wu is currently on an official good-will visit to Australia, the second leg of his four-nation Asia-Pacific tour, which has taken him to Singapore and will take him to New Zealand and Malaysia.

Addressing the forum, Australian Trade Minister Mark Vaile said the FTA negotiations are a "significant development in our already strong and growing bilateral relationship."

"An FTA with China would enhance output and employment in both countries and in all Australian states and territories," Vaile said, adding that it "will help shape our future trading relationship with the world's fastest-growing major economy."

Under a Memorandum of Understanding signed during Australian Prime Minster John Howard's visit to Beijing last month, the two sides agreed to start negotiations on a free trade agreement.

Source: Xinhua