BEIJING, Dec. 29 -- The free trade agreement (FTA) between China and Nicaragua will become effective on Jan. 1, 2024, the Ministry of Commerce (MOC) said Friday.

Both countries have completed their domestic procedures for the deal to take effect, the MOC said in a press release. The deal was signed in August 2023.

About 60 percent of goods in the bilateral trade will be exempt from tariffs upon the FTA taking effect, and the tariffs on over 95 percent will gradually be reduced to zero.

This FTA marks China's first instance of opening cross-border service trade and investment through a negative list.

The MOC described the signing of the FTA as a milestone in China-Nicaragua economic ties, which will further unleash potential in trade and investment cooperation and benefit businesses and people in the two countries.