Australia should turn its attention to a multilateral free trade agreement which includes our largest trading partner, China, as the United States-led Trans-Pacific Partnership (TPP) trade deal falters, according to leading business figure Rod Eddington.

Speaking after the completion of the Asia-Pacific Economic Cooperation's Business Advisory Council meetings in Melbourne this week, Australian representative Rod Eddington said that the Free Trade Area of the Pacific agreement had widespread support in the region because, unlike the TPP, it included China.

"If there is a key difference between the two agreements it is that FTAAP includes China and given that they are now the biggest-Asian economy and the second-biggest economy in the world, having China and Japan in FTAAP is important and it's important for Australia because our two biggest trading partners are China and Japan," Sir Rod told The ­Australian Financial Review, following the conclusion of the summit.

Rod Eddington says Australia should turn its attention to the China-led FTAAP as the US-led TPP free trade deal falters. Arsineh Houspian

"Whatever the outcome of the TPP discussions, we have to press on with FTAAP," Sir Rod said. "We've commissioned quite a big piece of work to help us prepare the ground for the forthcoming FTAAP discussions because we want to make sure that when the FTAAP discussions begin in earnest … we as ABAC, APEC's business arm are prepared to hit the ground running."

APEC's Business Advisory Council has commissioned a major report on the regional trade agreement including China for a meeting of APEC leaders in Manila in mid-November.