In what is likely to be their last meeting before the US Presidency changes, Barack Obama and Russian President Vladimir Putin have talked on the sidelines of the APEC meeting in Peru.

That could have been awkward – Barack Obama and Vladimir Putin crash in the corridor ahead of the first APEC session in Peru. With them is Kremlin advisor Yuri Ushakov. Photo: AP/Pablo Martinez Monsivais

At the beginning of the opening session on Sunday local time the pair had a very brief chat. No formal talks have been scheduled between them.

Pool reporters say they talked for several minutes before shaking hands.

Meanwhile Prime Minister Malcolm Turnbull has managed to squeeze in one last catch–up with Mr Obama before he steps down in January.

Trade will be on the agenda when the pair hold a bilateral meeting on the last day of the summit.

The pair are set to reflect on how the “compelling case” for free trade will eventually win the day, amid the doomed fate of a controversial Trans-Pacific Partnership trade pact.

“We believe the better argument will win over time,” Mr Turnbull told reporters in Lima on Saturday ahead of the APEC leaders gala dinner.

“What we have to do is make the case for our own economies.”

Donald Trump has been the elephant in the room at APEC and he intends to withdraw America from the TPP which he has characterised as a job-killing “disaster” and a “rape of our country”

However Mr Obama is optimistic Mr Trump may soften some of his hardline policies.

Mr Obama and Mr Turnbull are also expected to discuss a resettlement deal to send refugees from Nauru and Manus Island in Papua New Guinea to the US.

So far the numbers and time frames are yet to be finalised and it’s unclear whether President-elect Donald Trump will honour the deal.

US Homeland Security department officials are already in Australia and will be going to Nauru shortly to start assessments.

Turnbull and Trudeau do brunch

Ahead of that meeting Mr Turnbull and Canada’s heart throb Prime Minister Justin Trudeau have discussed free trade and the fight against Islamic State, over brunch.

Started day 2 at @APEC talking about ways to increase trade and boost opportunities for businesses in Canada & Australia. pic.twitter.com/833myks8m7

— Justin Trudeau (@JustinTrudeau) November 20, 2016

Mr Turnbull reflected on Australia’s strong ties with the fellow Commonwealth nation and the long history of cooperation in war and peace, as he warmly greeted Mr Trudeau.

The leaders said their discussion would cover free trade, strategic issues, human rights and the implications of Donald Trump’s victory in US presidential election.

Anti-terrorism cooperation was also on their agenda for the talks.

What the 21 leaders at APEC decide will have real implications for Aust. jobs pic.twitter.com/4d1YzjXSNp

— Malcolm Turnbull (@TurnbullMalcolm) November 19, 2016

Along with Australia, Canada’s military is also training Iraqi forces in the fight against Islamic State extremists.

Canada stopped airstrikes in Syria and Iraq back in February, but Australia still has six hornet fighter jets, a surveillance plane and refueller deployed.

Mr Turnbull lamented the lack of dairy at the breakfast table, as the pair sat down for fruit platters and pastries.

“Where’s the dairy,” Mr Turnbull joked.

“All these dairy farmers in Quebec would be distressed.”