BEIJING, Nov. 29 (Xinhua) -- China and Chile will jointly conduct research on livestock breeding and genetically modified crops, according to a memorandum signed by agricultural officials from the two countries here on Tuesday.

    The Chinese Academy of Agricultural Sciences (CAAS) and the Chilean Institute of Agricultural Research (INIA) agreed to exchange livestock, including cattle, and cooperate on developing genetically modified crops and fruits.

    The two countries will also work together to improve irrigation, pest prevention and the mechanization of small agricultural projects.

    The exchanges will give Chilean farmers more access to new technologies, said Cecilia Leiva, Chile's vice minister of agriculture.

    "The exchange is fundamental to the success of agricultural development of China and Chile," said Leiva.

    China enjoys advantages in farming, animal husbandry, microbiology, farm product processing as well as natural resources and environment, said Zhang Lijian, vice director of the CAAS.

    Zhang said he hoped the cooperation would soon benefit people of both countries.

    Chile signed a free trade agreement with China last November, the first Latin American country to do so.

    The agreement, which came into effect on Oct. 1, exempted 97 percent of all trade goods from import tariffs.

    China is Chile's second largest trading partner, with an average annual growth of 20 percent since 2000. Commodity trade volume reached 7.13 billion U.S. dollars in 2005, said the Chinese Ministry of Commerce.