A free trade agreement between Hong Kong and Chile went into effect on Monday, the Chilean government said.

Hong Kong signed the deal with Chile in 2012 at the Asia Pacific Economic Cooperation (APEC) summit in the Far Eastern Russian city of Vladivostok.

The deal took a year to negotiate and includes a raft of provisions aimed at encouraging trade in goods and services.

The agreement will give exporters and importers "preferential access to multiple areas and will open up broad opportunities between both parties," the Chilean foreign ministry said in a statement.

The agreement sees Chile put zero tariffs on 88 percent of Hong Kong imports, and restrictions on 2.3 percent. Hong Kong does not impose tariffs.

In 2013, Chile's exports to Hong Kong reached $174 million, most of it in food products.

Hong Kong meanwhile shipped about $110 million to the Latin American country, mainly in laptops and electronic goods, official figures show.