Federal election 2016: Obama phones Turnbull for long chat

The US President has had a long phone conversation with the PM over issues ranging from submarines to steel.

US President Barack Obama has phoned Malcolm Turnbull to discuss a number of issues, ranging from the recent submarine contract to a global steel glut.

Malcolm Turnbull and US President Barack Obama have had a lengthy conversation this morning, touching on a range of issues from the war in the Middle East to domestic steel production.

The Prime Minister and Mr Obama have also discussed Australia’s decision to purchase submarines from France, instead of Japan, which was widely believed to be the United States’s preferred option.

In the half-hour phone call this morning, the outgoing US President confirmed that the submarine decision was a sovereign decision for Australia, and said the US was looking forward to co-operating on the design and build of the 12 new submarines.

Mr Obama also “reiterated and confirmed” that the US would work with Australia on the system integration for the new submarines that will be built in Adelaide by French company DCNS.

The American combat system favoured by the Royal Australian Navy for the new boats is already shared with the Japanese government, and it has been reported that the US was hoping for the two fleets to be complementary.

Speaking on the fight against Islamic State, Mr Obama said the coalition was making “significant” military progress, and thanked Mr Turnbull for the “extraordinary contribution” of the Australian Defence Force.

The challenge now was to identify and make progress on the political front, the President said.

On the issue of maritime disputes in the South China Sea, Mr Obama and Mr Turnbull both reiterated their contribution to the principles of resolving maritime disputes, ensuring there was an adherence to national law.

The two leaders also discussed the global steel glut, with Mr Obama and Mr Turnbull agreeing to “identify ways to collaborate to ensure the ongoing viability of the steel industry.”

Mr Turnbull said the overproduction of steel was a “very serious issue”.

“We talked about the impact this was having on steelmakers in the US and, in his country and in Australia, and we discussed the position in Whyalla as a very highlighted example of the challenges that we’re facing through these very low steel prices,” Mr Turnbull said.

“The President and I have agreed that Australia and the US will intensify our collaboration to ensure that the overproduction of steel is addressed.”

Mr Turnbull said the issue had also been raised with China and there were “a lot of strong intentions” but more needed to be done to ensure the viability of steelmakers was not undermined by the dumping of “very cheap” steel.

Whyalla was referred to in the discussion, and Mr Obama referenced similar issues for industry in the United States.

Mr Turnbull also said that Mr Obama had advised that the Trans Pacific Partnership would be signed by the end of the year, but most likely after the US presidential election.