Terrorism, trade dominate Obama's meeting with Australian prime minister

WASHINGTON — The Islamic State and the Pacific Rim trade deal were likely to dominate the discussion during a working lunch at the White House between President Obama and Australian Prime Minister Malcolm Turnbull.

"There are very few countries that have as much in common as the United States and Australia does," Obama told reporters at the start of an Oval Office meeting Tuesday, before adjourning to a private lunch. Obama said his Asia "rebalance" — what he used to call the Asia "pivot" — "has been effective in part because we have such strong treaty alliances, and Australia is one of those.”

Obama said the terrorist attack in Jakarta, Indonesia, last week "it’s a reminder that Southeast Asia has generally done a very effective job fighting against extremism but it is an area that we have to pay attention to and watch."

Australia is the second largest contributor of troops to the effort to counter the Islamic State in Iraq and Syria, and the fourth largest economy in the proposed Trans-Pacific Partnership trade agreement.

Turnbull also complimented Obama on the Iran nuclear deal implemented Saturday.

"That was a formidable effort, a great example of leadership on the part of the United States," he said, calling it "an important step forward in ensuring the stability of that region."