Australia's idea for an Asia-Pacific free trade zone and community is likely to be fleshed out at an APEC summit in Lima next month, Peru's presidential office says.

The proposal was the subject of talks between Peruvian President Alan Garcia and Richard Woolcott, the Australian government's special envoy tasked with promoting relations with Asia.

Woolcott described the talks as "productive" and "useful" and expressed optimism that steps would be made for the community's creation.

The Australian envoy was in Lima to prepare the ground for an Asia-Pacific Economic Cooperation summit to be held November 21-23. He was also to visit Chile and Mexico .

Woolcott explained that the Asia-Pacific Community championed by Prime Minister Kevin Rudd would not be based on the model of the European Union, with a common currency and parliament.

Rather, he said, it would rely on ongoing dialogue between heads of government on joint problems and issues.

The Asia-Pacific Economic Cooperation groups 21 nations, among them Australia, Canada, Chile, China, Indonesia, Japan , South Korea , Malaysia, Mexico , Peru, The Philippines, Russia , Taiwan, Thailand and the United States.

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