Chile and China opened negotiations for a free trade deal in April last year. Once signed and ratified by both countries it will be the Asian nation's first ever with a Latin American country.

Negotiators expect the deal to go into effect on July 1 next year, Carlos Furche, Chile's director for international economic relations, told Reuters by telephone.

Chile wants to be the bridge between Asia, led by China's booming economy, and Latin America. The new accord is seen opening the door to Asian exports into the countries of Latin America's southern cone.

Presidents Ricardo Lagos of Chile and Hu Jintao of China will formalise the agreement at the mid-November Asia Pacific Economic Cooperation summit in South Korea, Chile Foreign Relations Minister Ignacio Walker told local radio. He did not give a date for when the pact might be ratified by lawmakers.

Once in place, the accord will mean immediate, tariff-free access to China for more than 90 percent of Chilean exports, including copper.

Last year China was the biggest single buyer of Chile's copper exports, buying 18 percent, or $2.728 billion worth. That was the bulk of Chile's $3.2 billion 2004 exports to China. Chile's imports from China last year were a little over $1.8 billion.