U.S., 11 nations reach historic deal

Trade ministers from the Asia-Pacific region have reached a deal on the Pacific trade pact that is intended to cut trade barriers and establish common standards for 12 countries. This is the largest trade pact in 20 years. About the Trans-Pacific Partnership: The Trans-Pacific Partnership is headed by the US and includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement covers 40% of the world’s economy. It would set new terms for trade and business investment among the United States and 11 other Pacific Rim nations. It would phase out thousands of import tariffs as well as other barriers to international trade. It also would establish uniform rules on corporations’ intellectual property, open the Internet even in communist Vietnam and crack down on wildlife trafficking and environmental abuses. What the supporters say? It would be a boon for all the nations involved. It would unlock opportunities and address vital 21st-century issues within the global economy. What the opponents say? Opponents in the United States see the pact as mostly a giveaway to business, encouraging further export of manufacturing jobs to low-wage nations while limiting competition and encouraging higher prices for pharmaceuticals and other high-value products by spreading American standards for patent protections to other countries. A provision allowing multinational corporations to challenge regulations and court rulings before special tribunals is drawing intense opposition. Why the US is interested in this pact: The pact is a major component of President Obama’s “pivot” to Asia. It is seen as a way to bind Pacific trading partners closer to the United States while raising a challenge to Asia’s rising power, China, which has pointedly been excluded from the deal, at least for now. It is seen as a means to address a number of festering issues that have become stumbling blocks as global trade has soared, including e-commerce, financial services and cross-border Internet communications.