Trade Ministers Reach Accord on Trans-Pacific Partnership

Negotiators have reached agreement on the 12-nation Trans-Pacific Partnership free-trade agreement after seven years of talks.

Analysts say the historic pact, if approved by the member nations, will touch about 40% of the world's economy. The deal would ease trade barriers among Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam.

The Obama administration has touted the agreement as a way to offset China's increasing power to dictate trade terms. But approval of the deal by Congress could easily be delayed until 2017 by the upcoming presidential election.

The broad agreement reportedly would lower to about 50% from the current 62.5% the minimum domestic content required for cars to avoid tariffs when shipped between the U.S., Canada or Mexico. The arrangement also would make it easier for Japanese carmakers to import parts from Japan for their U.S. plants.

Japan and the U.S. reportedly made a side agreement to slowly ease duties on cars shipped from one country to the other. Reports say the U.S. would eliminate tariffs on cars and trucks made in Japan over 25 and 30 years, respectively.

Not all carmakers believe the pact is a good one. Ford Motor Co., for one, is urging the Obama administration to renegotiate the agreement to include controls on currency manipulation. Others remain skeptical of the overall pact because many of the negotiations since 2010 have been secret.