The “signs are positive” for China to drop its $20 billion worth of trade sanctions against Australia, although a breakthrough is yet to occur, Trade Minister Don Farrell says.

Senator Farrell said on Thursday he would be happy to visit China for talks with his counterpart Wang Wentao to try resolve the trade issues through discussion rather than arbitration.

“I’ve made it very clear that we’re happy to meet at any time, at any place, and we’ll just see what the response by the Chinese government is to that,” he told ABC radio.

“The ball is now in the Chinese government’s court.”

The four main Australian export products at the centre of the dispute with Beijing are barley, wine, meat and crayfish.

“So we want to resolve those issues … the signs are very positive but we haven’t made a breakthrough yet,” Senator Farrell said.

“Time will tell just how we finally resolve these outstanding issues.”

However, the federal government wouldn’t withdraw two World Trade Organisation complaints against China in exchange for a better relationship with Beijing.

“We intend to proceed with those cases before the World Trade Organisation,” Senator Farrell said.

“We would prefer to sit down and discuss the issues with the Chinese government and, obviously, if that opportunity arises then we’ll take the opportunity to meet with them and and discuss outstanding issues.”

Meanwhile, the Australia-India free trade agreement, which activates on Thursday, will deliver new market opportunities for Australian businesses as tariffs on 85 per cent of exports are eliminated.

“We’ve had a very long standing and positive relationship with with India, of course … and we want to build upon those good relations,” Senator Farrell said.

Prime Minister Anthony Albanese plans to travel to India early next year.

-AAP