By Matt Siegel

China and Australia will today be signing a landmark free-trade deal more than a decade in the making, Australian Prime Minister Tony Abbott said, opening up markets worth billions to Australia and loosening restrictions on Chinese investment.

The deal, which Chinese President Xi Jinping is due to sign on a state visit to Canberra, will open up Chinese markets to Australian farm exporters and the services sector while easing curbs on Chinese investment in resource-rich Australia.

"I look forward to making further announcements on this landmark agreement later today," Abbott said in a statement.

Australia is attempting to transition from a reliance on exports of minerals such as coal and iron ore to expanding its food and agricultural exports to a growing Asian middle class, moving from a "mining boom" to a "dining boom."

China is already Australia's top trading partner, with two-way trade of around A$150 billion ($130 billion) in 2013.

Paul Glasson, the national vice-president of the Australia China Business Council, hailed the much-improved access for up to 40 service industries including health, law and aged care, as well as for agricultural products such as dairy, rice, wheat, wool and cotton.

"Up to 95 percent of our exports over time will enter the Chinese market tariff free," parliamentary secretary Josh Frydenberg said in a television interview on Sunday.

Dairy, wine, minerals

The agreement will give Australian dairy farmers tariff-free access within four years to China's lucrative infant formula market, minus any of the "safeguard" caps that currently restrict competitors from New Zealand, the Sydney Morning Herald reported, citing sources.

"Australia has been marginalised from being a major exporter to China in the last few years, one of the reasons being that milk production [there] has been going down over the last decade," said Sandy Chen, dairy analyst at Rabobank in China.

Wine makers, currently selling more than A$200 million worth of goods to China each year despite tariffs of between 14 and 30 percent, will also see tariffs eliminated over four years, it reported.

Tariffs on horticultural products, seafood and other goods accounting for 93 per cent of Australian exports by value will also be reduced to zero by 2019, according to the newspaper.

The Minerals Council of Australia said it understood that the agreement would eliminate a 3 percent coking coal tariff immediately and a 6 percent tariff on thermal coal within two years.

Hundreds of protesters gathered at Parliament House on ahead of Xi's arrival. Huge banners in English and Chinese exhorted the leader to "Free Tibet" and end what they called the persecution of religious sects such as Falun Gong.

Xi was in Canberra after attending the G20 leaders' summit at the weekend in Brisbane. His visit was also scheduled to include stops in Sydney and Tasmanian state capital Hobart.

The free-trade agreement caps a string of breakthrough deals for Xi, who was chauffeured in a golf cart by Queen Elizabeth's representative in Australia, Governor General Peter Cosgrove.

Last week, he jointly announced with U.S. President Barack Obama a groundbreaking plan to cap and eventually roll back carbon emissions, as well as reaching a "substantial conclusion" of a free-trade deal with South Korea.