The leaders of 12 Pacific Rim countries, including the US, Japan and Vietnam, have finally concluded negotiations on the Trans-Pacific Partnership (TPP) trade deal after five years of talks – paving the way for what will be the world's largest free trade agreement.
Linking about 40% of the global economy, or $28.1 trillion of GDP, the controversial deal was signed after five days of talks in Atlanta in the US.
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The other countries included in the TPP are Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru and Singapore.
The TPP will see the elimination or reduction of tariffs between the 12 countries. Agricultural goods are included in the agreement. In a statement, the Office of the United States Trade Representative said the deal would "increase agricultural trade in the region, and enhance food security".
Tariffs in agricultural goods have not be completely eliminated across the 12 countries. Tariffs on dairy had proved a notable sticking point in the negotiations. but the USTR said the signatories had agreed to "promote policy reforms, including by eliminating agricultural export subsidies, working together in the World Trade Organization to develop disciplines on export state trading enterprises, export credits, and limiting the timeframes allowed for restrictions on food exports so as to provide greater food security in the region".
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The TPP also includes annexes related to the regulation of specific sectors to promote common regulatory approaches across the 12 countries. The sectors include proprietary formulas for prepackaged foods and food additives, and organic agricultural products.
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By GlobalDataAdditional reporting from just-style editor Leonie Barrie.
