The agreement which provides for a level-playing field to Western firms in the world's biggest consumer market, was inked here by Chinese Foreign Trade Minister Shi Guang Sheng and US Trade Representative Chrlene Barshefsky.

The accord will help remove trade barriers and clear the biggest hurdle for China's entry into the WTO. It was reached here after a gruelling six-day talks between the high level delegations from both sides and a critical intervention by Chinese leaderships including Premier Zhu Rongji.

They have agreed on the terms and conditions of the access to China's market, including specific pledges on the access to areas of industrial products, agricultural produce and the services sector, Xinhua news agency said.

Hailing the agreement, US President Bill Clinton said, with this accord"China embraces the principles of economic openness, innovation and competition that will both serve China's reforms and advance the rule of law".

"President Jiang Zemin and Prime Minister Zhu Rongji have shown genuine leadership in committing China to open its markets and to abide by global rules of fair trade," Clinton said in Ankara during his tour to Turkey.However, diplomats and trade sources said China still has some way to go before gaining entry to the WTO, despite the deal.

They pointed out that though Japan had said it had completed negotiations, the European Union and Canada still had to wrap up an accord with China settling all the concerns they have on letting it in under the WTO umbrella.

Additionally, many major developing countries, who would also have to agree, are nervous about having to open up their markets to Chinese goods.