The conclusion of a six year negotiation has seen the USA, Australia, Brunei, Vietnam, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore, Chile and Japan form a Trans-Pacific Partnership. The TTP is about creating a free trade zone in the Asia Pacific region, a region which accounts for roughly 40% of global GDP and around 30% of trade turnover.
The agreement is the biggest US trade deal to date, overcoming that of 1994 when the country signed the NAFTA (North American Free Trade Agreement) deal with Canada and Mexico.
Member states of the partnership will have the opportunity to conduct levy-free trade on a great majority of goods and the deal allows for a significant reduction in tariffs on levied goods. According to estimates, an estimated 18,000 American goods will see levies wiped. The regulations of the partnership do not only cover goods, but also intellectual property and ownership rights.
The main target here for the US is China and what the States sees as its dominance in the region. This partnership is one of the principle targets of the current US president. Although Obama is unlikely to have the agreement passed straight through Congress without hindrance, there is no doubt that this agreement will pass through the house.