China and Iceland kicked off talks toward a free trade agreement (FTA) in Beijing Wednesday, the Ministry of Commerce said.

In this round, representatives from the two countries will negotiate on trade in goods, services and other sectors, said Wang Xinpei, spokesman for the ministry.

"We hope the first round of talks will yield positive results through joint efforts from the two sides," he said.

Wang also said the ministry expects the proposed FTA between China and Iceland will have a profound impact on bilateral economic and trade relations.

Gunnar Snorri Gunnarsson, ambassador of Iceland to China, said in an earlier interview he expected the agreement to be a comprehensive one, covering trade, services and investment.

Iceland was the first European country to grant China market economy status. China's exports to Iceland hit 77.67 million U.S. dollars last year, while imports from the Northern European country stood at 39.99 million dollars.

Wang said the FTA reached between the United States and South Korea earlier this month was expected not only to boost economic and trade relations between the two, but also to benefit the economic development of Asia and the world.

China is also striving to put forward an FTA plan with South Korea as soon as possible, he said.