Trade talks between Australia and European Union collapse

Last-chance talks on a trade deal between Australia and the European Union have collapsed, Australian Trade Minister Don Farrell said overnight.

Improved access for Australian meat and protections for EU goods proved a major hurdle in talks between the two sides held in Japan on the sidelines of a G7 meeting, reports The Sydney Morning Herald.

Farrell was expected to attend ministerial talks with EU trade and agriculture ministers on Monday to finalise a deal but has pulled out of them after initial talks failed to hammer out an agreement.

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"We weren't able to make progress," Farrell said.

"Negotiations will continue, and I am hopeful that one day we will sign a deal that benefits both Australia and our European friends."

A spokesman for the EU said its commission was prepared to continue talks.

"There was optimism that a deal was within reach," the spokesperson said.

"However, ministerial discussions in Osaka did not see the same progress.

"The Australian side re-tabled agricultural demands that did not reflect recent negotiations and the progress between senior officials."

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Negotiations broke down in July when Australia walked away from talks, claiming its farm sector would not gain sufficient access to European markets.

The federal government, with the support of the National Farmers Federation and other industry groups, kept negotiating.