The European Union and Australia, whose plans for a sweeping free trade deal have been put on hold since 2023 due to disputes over certain sectors such as farming, have made progress on resolving areas of disagreement, they said.
"Good progress was achieved in narrowing gaps on a small number of outstanding matters. The principals will now report back to their leaders," said European Trade Commissioner Maros Sefcovic and Australian Trade Commissioner Don Farrell in a joint statement on Friday.
A previous attempt to reach a trade deal failed in 2023, with Australia wanting greater access for lamb and beef exports to Europe, while the EU wants greater access to Australian critical minerals and lower tariffs on manufactured goods.
Senator Farrell met with EU trade commissioner Maros Sefcovic and agriculture commissioner Christophe Hansen.
"As I have clearly and consistently said, any deal must be in Australia's interests and include new, commercially meaningful market access for Australian agriculture," Senator Farrell said pre-departure on Wednesday.
"I don't do bad deals."
European Commission president Ursula von der Leyen is expected to arrive in Australia in coming weeks, which adds pressure to have the deal ready to sign during her trip.
It's hoped the trade ministers' meeting clears the path for the agreement to be signed.
The EU wants to compete more strongly with the US and China, and last month struck a trade deal with India.
with AAP