Twelve Pacific Rim countries reached the most ambitious trade pact that cuts trade barriers, sets labour and environmental standards and protects multinational corporations’ intellectual property. It aims to counter the might of China and will cut trade barriers affecting everything from the price of cheese to the cost of cancer treatments. The deal covers about 40% of the world economy and was signed after five days of talks in Atlanta in the US.

The Trans-Pacific Partnership (TPP) Agreement is designed to encourage trade between the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The agreement – the largest regional trade deal in history – will now have to be approved by the legislators of each signing country. China was not involved in the agreement, and the Obama administration is hoping it will be forced to accept most of the standards laid down by TPP.

The TPP eliminates more than 18000 taxes levied by various countries on American goods in turn benefiting farmers, ranchers and manufacturers. The Trade Pact also sets minimum standards on various global issues ranging from environmental protection and Workers Right.