WELLINGTON, New Zealand, July 10 (AP) -- New Zealand hopes to wrap up a comprehensive free trade agreement with China by mid-2009, a year later than scheduled, Prime Minister Helen Clark said Tuesday.

"We aim to conclude a high quality and comprehensive FTA within two years," she said in a speech to the Action Asia Business Summit in the northern city of Auckland.

"I am optimistic that we can achieve this objective, notwithstanding some crucial issues yet to be resolved," she said.

New Zealand, the first Western nation to acknowledge China as a market economy, was chosen by China as the first advanced economy with which to negotiate a comprehensive FTA.

Clark did not elaborate on the issues remaining to be resolved, but they are expected to relate to reducing barriers in services, ranging from banking and insurance to professional services.

The two nations began negotiations in Beijing on July 6, 2004, and Clark and Chinese Premier Wen Jiabao previously said they hoped to conclude talks by next April.

Two-way trade between the two economies totals more than 5 billion New Zealand dollars (US$3.9 billion; €2.9 billion) a year _ and New Zealand projects exports to China will grow by up to NZ$400 million (US$311 million; euro228 million) a year once a trade deal is in place.

Clark, urging New Zealand business to "engage with Asia," said 12 of New Zealand's top 20 export markets, with a combined value of more than 11 billion New Zealand dollars (US$8.6 billion; €6.3 billion) a year, are in Asia.

"Asia is the world's fastest growing region, with economic projections suggesting its share of the world economy will exceed 40 percent by the end of 2030," she said.