Prime Minister Malcolm Turnbull has revealed he spoke with the US President about the Trans-Pacific Partnership (TPP) touted as the biggest free-trade agreement in history.

In the studio with Neil Mitchell, Mr Turnbull also confirmed he’d been sounded out to be Australia’s ambassador in Washington but declined.

‘It’s not my cup of tea,’ he said.

In the wide-ranging interview, Mr Turnbull also addressed a number of key issues.

The TPP deal – ‘bigger than the free-trade agreement with China’

‘This deal has no impact on the pharmaceutical scheme, this is not going to make drugs more expensive in Australia,’ he said.

‘We were clear about our position at the outset.

‘It is a very big win.’

Penalty rates – ‘a matter for Fair Work Australia’

‘I think over time, you will see a move to a more flexible workplace,’ he said.

‘You have unions and workers who are naturally reluctant to give up benefits they have.

‘If you want to get the support of workers and unions, to changes like that, you have to persuade them they are better off.’

The PM also addressed:

• The state of the economy and tax cuts
• Revoking citizenship of dual nationals
• Australia’s terror threat
• Melbourne’s Metro Rail project
• The ousting of former PM Tony Abbott

Audio: Prime Minister in the studio with Neil Mitchell