Canada has stalled talks about the Trans-Pacific Partnership before a scheduled meeting between 11 countries on Friday.
Australia's Trade Minister Steve Ciobo revealed to reporters on Friday afternoon the Canadian prime minister raised concerns over the TPP.
"At this point in time it would appear at the request of Canada we've been unable to have leaders achieve a resolution today," Mr Ciobo said.
Mr Ciobo said Canada raised a number of issues just before the meeting that halted the trade ministers from coming to an agreement.
"It is, of course, disappointing that this has happened. This is a very good deal,” he said.
Australian officials have told SBS World News trade negotiators just watched six years work go "down the drain".
The leaders in the room were seemingly bewildered and disappointed at Canada's no-show.
It is understood negotiators will try again, but not at this APEC.
It is unclear what the issues Canada had raised were.
Australia was on the verge of signing a Pacific Rim trade pact abandoned by US President Donald Trump.
"I understand that Prime Minister Turnbull and Prime Minister Trudeau have a scheduled bilateral so I'm sure they'll have the chance to talk through those issues," Mr Ciobo said.
"Well it's less than ideal to have every leader and trade minister from the other 10 countries at the table and not have Canada there… that's not an ideal outcome."
Mr Ciobo said an agreement had been reached between all 11 trade ministers on Thursday night.
"That agreement was for a substantial conclusion around the TPP11, on that basis we made a recommendation to the leaders to take the TPP11 forward," he said.
"Unfortunately in between that meeting and the meeting of leaders today, Prime Minister Trudeau raised a number of issues."
The 11 countries remaining in the Trans-Pacific Partnership were expected to endorse a basic agreement at the Asia Pacific Economic Cooperation summit in Vietnam.
Canada, whose economy is second-largest among the 11 countries behind Japan, had already indicated they would not be rushed on the agreement.
Mr Turnbull was among those pushing for an 11-nation Trans-Pacific Partnership to be sealed at APEC.
Japan has lobbied hard to proceed with the pact which could help contain China's growing regional dominance.
- with AAP