12 nations reach historic trade pact

The United States and 11 other nations Monday reached the most ambitious trade pact in a generation, aiming to liberalize commerce in 40 percent of the world's economy in a deal that faces skepticism from both parties in Congress.

The accord would phase out tariffs on thousands of goods and establish uniform rules of commerce. It was announced Monday 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 represents a victory for President Barack 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 certain to be a huge political battle intensified by the 2016 presidential race 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 it 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 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 dominance.

Obama, in a statement, said '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 the Pacific accord would add only modestly to U.S. economic growth and have little overall effect on jobs, in part because the United States already has trade pacts with several of the nations.

Expanding Pacific trade, however, would have proportionately larger effects in some states where agriculture and technology play big roles in the economy.

But U.S. industries such as autos and textiles could experience some losses as they are likely to face greater competitive pressures from Vietnam, Japan and New Zealand.

The rest of the Trans-Pacific Partnership nations are Canada, Australia, Mexico, Malaysia, Singapore, Chile, Peru and Brunei. Conspicuously absent is China, which has the biggest economy in Asia.

Many major business groups applauded the agreement, although they remained cautious 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.

Although Republicans traditionally have backed free trade, GOP front-runner Donald Trump has blasted the Pacific deal.

U.S. Sen. Bernie Sanders who is running for the Democratic presidential nomination, also slammed the deal, saying, 'Wall Street and other big corporations have won again.”

Democrat Hillary Clinton has hedged, despite supporting it while serving as secretary of state.

The thorniest of the issues that dominated the negotiations in Atlanta was over patent lengths for complex drugs known as biologics.

U.S. trade officials had pressed for eight years of intellectual property protection for these drugs before the release of data could lead to generic substitutes. Most of the partnership countries have drug exclusivity for five years or less.

Trade officials indicated that the sides had reached a compromise to establish at least a five-year period of exclusivity, leaving wiggle room for the United States.

U.S. pharmaceutical firms argued that longer patents were needed, given the cost of developing biotech drugs. Consumer groups pushed for shorter terms so patients could have timely access to affordable medicines.

The Washington Post, Los Angeles Times and Reuters contributed to this report.