Goff met Chinese Commerce Minister Bo Xilai in Auckland Monday to discuss the free trade deal, which is aimed to be completed by April 2008.

"Progress is about what we would have expected to date," Goff told Radio New Zealand.

He said Bo was committed to reaching a conclusion to the negotations, although he warned the issues to be resolved would get thornier.

"As we get further into the negotiations you get closer to the tough issues and this is the first developed country China has attempted to negotiate a free trade agreement with," Goff said.

"So the nature of this agreement is more comprehensive, more wide-ranging than any other agreement they have sought."

Trade between the two countries is worth 6.18 billion dollars (4.1 billion US) annually.

During a visit to New Zealand in April, Chinese Premier Wen Jiabao said the negotiations had run into problems in agriculture and services but he signalled his determination for the issues to be resolved.

China has been most worried about freeing up agricultural trade and in particular reducing barriers to New Zealand's dairy exports, while New Zealand is most concerned about the impact on local manufacturers.

New Zealand has been pushing for phased-in tariff reductions to address the concerns of both sides.

The ninth round of negotiations between the two countries is due to get underway in Wellington next week.