The U.S. government on Monday hailed a landmark free trade pact with South Korea, saying it will create economic opportunities and enhance their economic and strategic partnership.

"This is a historic moment for our two countries. The United States-Korea Free Trade Agreement (FTA) will provide U.S. farmers, ranchers, manufacturers, and service providers exciting new market opportunities in a growing, dynamic country," said U.S. Trade Representative Susan C. Schwab.

"The completion of this landmark agreement is testimony to the industriousness, creativity and determination of our two peoples," she said, adding it demonstrated that two countries with large, complex economies and robust public involvement in policy debates can work through great challenges to build stronger trade and investment ties."

The agreement with South Korea represents the most commercially significant FTA in the United States for over a decade.

In 2006, trade volume between the two sides was recorded at 74 billion U.S. dollars and local economists estimated the trade volume will increase 20 percent after the FTA takes effect.