Twelve Pacific Rim countries concluded a sweeping free-trade deal yesterday that the United States regards as a core vehicle for its policy of focusing on Asia in the face of a rising China.
The US, Japan and the 10 other countries reached a broad agreement on the Trans-Pacific Partnership initiative that covers around 40 per cent of the global economy after years of talks, said Akira Amari, the Japanese minister in charge of TPP negotiations.
The wide-ranging deal sets rules not only on international trade but also investment and the handling of intellectual property such as new biologic drug patents.
The TPP also covers environmental conservation and labour protection, as well as restrictions on the favourable status of state-owned enterprises in a bid to revitalise economic activities in the Asia-Pacific region.
Having received the news from Amari, Japanese Prime Minister Shinzo Abe told reporters the trade deal "is a great achievement for the future of not only Japan but the Asia-Pacific region".
It is uncertain, however, whether the free-trade deal will take effect smoothly as it has to go through fine-tuning over smaller remaining issues, a formal signing and legal procedures in each country.