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Ambitious TPP trade deal signed

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Trans-Pacific Partnership (TPP) leaders (L to R) Australian Prime Minister Malcolm Turnbull, Brunei's Sultan Hassanal Bolkiah, Canadian Prime Minister Justin Trudeau, Chilean President Michelle Bachelet, Japanese Prime Minister Shinzo Abe, Malaysian President Najib Razak, US President Barack Obama, Mexican President Enrique Pena Nieto, New Zealand's Prime Minister John Key, Peruvian President Ollanta Humala, Singapore's Prime Minister Lee Hsein Loong and Vietnam's President Troung Tan Sang pose for a family photo prior to a meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in ManilaImage copyright
AFP

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The US-led Trans-Pacific Partnership (TPP) pact involves 12 countries looking to lower barriers to trade and investment

The ambitious Trans Pacific Partnership (TPP) has been formally signed in Auckland even as the US struggles to get the pact ratified in Congress.

The trade deal looks to facilitate investment between 12 countries across the Pacific Rim, which together account for about 40% of the global economy.

This includes Singapore, Australia, Canada, Japan, Malaysia and Mexico.

The TPP was agreed in October after years of negotiations and multiple missed deadlines.

The US-led initiative is a key part of President Barack Obama’s so-called pivot to Asia but has proved to be a controversial issue ahead of the US elections in November.

Mr Obama has barely a year left on his term and his administration warns that the US economy will suffer if politicians don’t ratify the TPP agreement.

US Trade Representative Michael Froman said the deal could add $100bn a year to US growth.

“After five years of negotiation, signing the TPP is an important milestone in our efforts to set high-standard rules of the road in the Asia Pacific region and more generally, and to deliver an agreement that will benefit American workers, farmers and businesses,” he said.

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