12 Pacific Nations Sign Major Trade Deal

Twelve Pacific nations including the US, Australia and Japan have signed a major free trade pact as the US executes a "pivot" towards Asia to counter the growing power of China.

The Trans-Pacific Partnership (TPP) is the biggest deal of its kind in history and aims to remove tariffs and other barriers to free trade between the countries.

Together they account for 40% of the global economy. The countries also include Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

US President Barack Obama said: "TPP allows America – and not countries like China – to write the rules of the road in the 21st century."

The 12 nations have signed the US-led initiative in New Zealand but it still requires years of tough negotiation before it becomes a reality.

Six of the countries will need to ratify the deal formally, including the US – where opposition in Congress could make it hard to win approval before Mr Obama's term ends early next year.

Critics in the US say the agreement will threaten jobs.

Opponents are also concerned that it may mean reduced access to products such as affordable medicines. In addition, there is controversy over a clause allowing foreign investors the right to sue governments if they feel their laws or policies have hurt profits.

Some fear the TPP will benefit big businesses at the expense of small firms.

Tens of thousands of protested in Auckland as the deal was being signed.

The agreement is separate to the Transatlantic Trade and Investment Partnership (TTIP), a free trade deal being negotiated between the US and the EU.