Australia's free trade deal with the EU has collapsed.

Australian correspondent Oliver Petersen says negotiations had been going on for five years, but the final deal wasn't good enough for either side.

He says it's to do with access - or lack thereof - that Australian beef producers can get to the EU.

"They didn't even get to the table to say- let's sign this off. What's going to happen here- we're going to just look at New Zealand's model and ask if we can do the same thing. But at this stage, no deal."

New Zealand signed its own Free Trade Agreement with the EU last year.

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