CHINA and Chile have signed an agreement to allow investment between their countries in services in areas such as computing, mining and environmental industries.

The deal would open up 23 service industries in China’s booming economy to investment by Chile, China’s Ministry of Commerce said on its Web site late Sunday.

The agreement also gives Chinese companies access to the Chilean market in 37 sectors including law, real estate and engineering.

The pact would likely come into operation at the beginning of 2009, the ministry said.

The deal was signed after Chilean President Michelle Bachelet met Chinese President Hu Jintao during a ceremony at the Bo’ao Forum.

The new agreement expands an existing free trade pact signed between China and Chile in 2005 — the first FTA China signed with a Latin American country. Since then bilateral trade between the two countries had grown 65 percent to US$14.7 billion last year, the ministry said. Chile mainly exports copper and wine to China. China exports mostly computers, communications technology, electronic products and automobiles.

China signed a free trade agreement last week with New Zealand, its first such pact with a developed country. It is also pursuing a similar agreement with Australia.(SD-Agencies)