U.S. and 11 Pacific Rim nations reach deal on massive trade accord

WASHINGTON - After more than six years of stalled progress and political wrangling, negotiators from the United States and 11 trading partners across the Pacific Rim announced a deal Monday on a landmark trade accord linking 40 percent of the global economy.

The agreement on the Trans-Pacific Partnership clears the way for what would be the world's largest regional trade pact.

China, which has the biggest economy in Asia, is conspicuously absent from the accord.

The pact phase out tariffs on thousands of goods and establish uniform rules of commerce.

It was announced Monday morning after extended talks in Atlanta that were marked by repeated delays and last-minute hitches. Officials worked feverishly over the last five days to overcome sharp differences on drug patents, dairy markets, and auto manufacturing rules.

The breakthrough on the controversial deal represents a significant victory for President Obama in his pursuit of a legacy-making goal to expand America's influence in the Asia-Pacific region.

It sets the stage for what is almost certain to be a huge political battle, intensified by the 2016 presidential campaign, that pits the White House, many Republicans, and supporters of free trade against organized labor, civic groups, and many lawmakers from Obama's own party who fear the deal will hurt workers and the environment.

Congress, which must approve the final agreement, won't vote on it for at least a few months.

Obama has argued that the Trans-Pacific Partnership will not only boost opportunities in fast-growing Asia but embed a U.S.-led system of trade and investment in a region where China has emerged as a challenger to America's long-held dominance.

Obama, in a statement Monday, said the agreement "reflects America's values and gives our workers the fair shot at success they deserve."

"We should write those rules, opening new markets to American products while setting high standards for protecting workers and preserving our environment," he said. "This partnership levels the playing field for our farmers, ranchers, and manufacturers by eliminating more than 18,000 taxes that various countries put on our products."

Private studies suggest that the Pacific accord would add only modestly to U.S. economic growth and have little overall effect on jobs, in part because the U.S. already has free-trade pacts with several of the Trans-Pacific Partnership nations.

Expanding Pacific trade, however, would have a proportionately larger effect in California. Trade plays a bigger role in its economy, and the state's strengths in agriculture, technology, and entertainment figure to be among the biggest beneficiaries of an agreement.

U.S. industries such as auto, textiles, and dairy, however, could experience some losses as they are likely to face greater competition from Vietnam, Japan, and New Zealand. The other Trans-Pacific Partnership nations are Canada, Australia, Mexico, Malaysia, Singapore, Chile, Peru, and Brunei.

Business groups applauded the agreement, although they remained cautious about its potential impact as they awaited details. Ford Motor Co. spoke out in opposition, saying the package failed to address the problem of countries unfairly using currency exchange rates to boost trade.