Antalya: Formal negotiations on a free trade agreement between Australia and the European Union will begin in early 2017, following talks in Sunday between Prime Malcolm Turnbull and European Commission President Jean-Claude Juncker. 
Meeting on the sidelines of the Group of 20 leaders' summit in Antalya, Turkey, the men explained that with 28 countries in the EU, time was needed for a the EU's  starting position to be sorted out before negotiations began.
"Our aim is to finalise in 2017," Mr Juncker said.
Mr Turnbull called the agreement "an important day".
"This is the first substantial step and it's a very important one," he said.
He told Mr Juncker it was understandable that the EU needed time to negotiate its own starting position, given it had 28 member states. Mr Turnbull was accompanied by Finance Minister Mathias Cormann who is helping with negoitiations.
Last week, German Chancellor Angela Merkel told Mr Turnbull she supported the FTA and would use her country's influence to help make it happen.
Moves to seal an FTA with the EU begun when Tony Abbott was prime minister and he sought to capitalise n the momentum of sealing deals with South Korea, Japan and China.
The EU is the world's largest single economy.