Trans-Pacific Partnership trade deal signed

The world's biggest ever trade deal was signed into existence on Monday.

   
The Trans-Pacific Partnership (TPP) cuts trade tariffs and sets common standards in trade for 12 Pacific Rim countries, including the United States and Japan. It marks the end of  five years of  often bitter and tense negotiations.

   
Supporters say it could be worth billions of  dollars to the countries involved, but critics say it was negotiated in secret and is biased towards corporations.

   
The deal covers about 40 per cent of the world economy and was signed after five days of  talks in Atlanta in the United States.

   
Despite the success of  the negotiations, the deal still has to be ratified by lawmakers in each country.

   
China was not involved in the agreement, and the US is hoping it will be forced to accept most of  the standards laid down by TTP.

                                                      

In response to the signing of the agreement, Christine Lagarde, Managing Director of  the International Monetary Fund, said it was a very positive development.

She said this development goes to the heart of  her call for policy upgrades to avoid mediocrity in the global economy, of which rekindling trade forms an essential component.

   
She added that the agreement is not only important because of  the size, with signatories accounting for 40 per cent of  global GDP, but also because it pushes the frontier for trade and investment, where gains can be significant.