In a press conference in Atlanta on October 5, trade ministers from 12 countries announced a final agreement on the Trans-Pacific partnership (TPP). TPP is the largest regional trade pact since the inking of the North American Free Trade Act (NAFTA) in 1994.

TPP will phase out thousands of import tariffs and other trade obstacles. It will also bring about uniform rules on the intellectual property of trade companies operating in the 12 member nations, which have a total population of about 800 million and contribute 40% of global trade. Once TPP is in operation, it could exert immense pressure on China, the notable omission in the list of member countries.

The participating countries must now get the approval of the terms from their respective lawmaking bodies. In particular, President Barack Obama might find it difficult to convince Congress and get the TPP passed in both chambers. This is because 2016 is election year, when some Republicans might try their best to block any move that could give the Democrats an edge in the political battle.