The latest round follows Australia's publication of the EU's Geographical Indications list in August and an initial market access exchange offer for goods from both sides.
Speaking at the opening session at the Department of Foreign Affairs and Trade in Canberra, the EU's chief negotiator Helena König said the EU's offer is ambitious.
"The offer was highly awaited and it's good!" She told the negotiating teams. "There is a common aim on both sides to progress towards a good result. We want to make sure we can progress even further across the board."
Australia's chief negotiator Alison Burrows urged the teams of negotiators to find solutions and "move forward to the path of conclusion."
On Thursday, the chief negotiators held a Q&A with 100+ stakeholders representing a broad range of industry and sectors. The session covered topics including: sustainable development, pharma, IPO, digital services, geographical indications, market access and more.
Eighteen working groups covered most areas of the FTA, including initial market access offers for goods.
"Discussions were held in a good and constructive atmosphere and showed a shared commitment to negotiate an ambitious and comprehensive agreement," the DG Trade report reads.
The next round of negotiations is scheduled to take place in the week starting 10 February 2020.