China, Iceland sign FTA

After the talks, the two sides issued a joint statement on "comprehensively deepening bilateral cooperation" between the two countries.

The two sides pledged to take the signing of the free trade deal as an opportunity to further deepen mutually beneficial cooperation in the fields of trade and investment, according to the statement.

"The China-Iceland joint statement and the FTA will help to push the cooperation between the two countries onto a 'fast-track' ", said the Chinese premier.

According to the statement, China and Iceland have agreed to further enhance their exchanges and practical cooperation on Arctic, marine, geothermal, geo-scientific, environmental protection and climate change issues, among others, in accordance with relative documents signed in 2012.

"Iceland reaffirmed its support for China's application for observer status in the Arctic Council. The Chinese side expressed appreciation for this support," according to the statement.

Li and Sigurdardottir also called for openness and liberalization to facilitate world economic recovery.

"Both sides are opposed to trade and investment protectionism, and resolve to remove trade barriers through the creation of a free trade area to contribute to the harmonious development of world trade," said the statement.

During the talks, the two sides agreed to strengthen political and economic dialogues on the basis of mutual respect and equality.

As United Nations member states, the two sides have pledged to stand for respecting the purposes and principles of the Charter of the UN and the authority and role of the UN.

"The leaders of the two sides reiterated their support for a fair, just, reasonable and rule-based multilateral system, with the United Nations playing the central role in addressing global issues," according to the statement.

It said the two sides believe that all countries should be treated as equals in the international community and be able to play a constructive role in world affairs, regardless of size or strength. "The two sides share common interests in working together on bilateral, multilateral and global issues."