Australia, S Korea to discuss trade deal

Updated August 11, 2008 18:20:57

Australia's Prime Minister Kevin Rudd says Australia and South Korea will begin formal discussions on a free trade agreement in Canberra next month.

Mr Rudd is in South Korea and today met the country's President Lee Myung-bak in the capital Seoul.

The two leaders had been due to discuss climate change and Mr Rudd's idea for a Europe-style Asia Pacific community.

However the Australian leader says the main issue on the agenda was the development of a free trade agreement.

"These are preparatory discussions preparatory negotiations and the president and I confirmed our in-principal support for an Australia-Korea free trade agreement."

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