The United States, Japan and 10 other countries reached agreement on a huge trade deal Monday. The deal will lower trading barriers and set commercial rules for 40 percent of the world economy.
The Trans-Pacific Partnership agreement was reached in the U.S. city of Atlanta, Georgia, after seven years of negotiations.
For the deal to take effect, it must be approved by national legislatures in all 12 countries. In addition to the U.S. and Japan, the countries include Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
It is not clear whether the U.S. Congress will support the trade deal. But the completion of the agreements marks a major victory for President Barack Obama. He said the TPP deal reflects America's values and gives our workers the fair shot at success they deserve.
Economic observers see the deal as an agreement that could balance the growth and influence of China.
Japanese Prime Minister Shinzo Abe praised the agreement.
