Australia and Indonesia are to consider negotiating a free trade agreement, potentially opening up South-East Asia's biggest market, but adding to pressure on the embattled textiles and clothing industry.
Australia and Indonesia are inching towards talks on freer trade, as the imminent collapse of global reform talks puts a greater focus on regional deals.
Chinese philosopher Laozi said a thousand-li journey starts by taking the first step, but Australia's free-trade agreement team is looking decidedly footsore.
Trade Minister Warren Truss has accused China and its neighbours of "unrealistic" fears that 140,000 farmers in Australia could wipe out a billion farmers in Asia if there were free trade in agriculture.
Trade Minister Warren Truss has dubbed long-running free trade talks with China as tortuous, a day after the Chinese warned relations with Australia could suffer because of a visit by the Dalai Lama.
Australians have a natural dislike of faceless people making major government policy decisions. Such activity seems to run counter to core principles about how a democracy should operate. Yet, this is what appears to have happened with the Medicines Working Group, established under the free trade agreement between Australia and the United States.
A meeting in August is likely to explore the possibility of a free trade agreement between Pacific Island countries and New Zealand and Australia but rapid progress is not expected.