SANTIAGO, Chile — Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs on the same day that President Donald Trump was expected to formalize new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile’s capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

The pact includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Its success highlights the isolation of the U.S. under Trump’s protectionist rhetoric on trade and his “America first” philosophy.

“It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective,” said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. “It is now a trade bloc that discriminates against the U.S.”

Meltzer said the United States’ ability to shape the rules of trade in the Asia-Pacific region “is very much diminished.”

The U.S., originally the biggest TPP economy, was one of the trade deal’s strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is “a strong sign against the protectionist pressures, and in favour of a world open to free trade, without unilateral sanctions and the threat of trade wars,” Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump’s tariffs — of 25 per cent on imported steel and 10 per cent on aluminum imports — with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi’s jeans and bourbon.

The EU threat and Trump’s impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries’ consumers, who face higher costs.

Associated Press writer Eva Vergara reported this story in Santiago and AP writer Luis Andres Henao reported from Buenos Aires, Argentina. AP writer Paul Wiseman in Washington contributed to this report.</s>Eleven countries are expected to sign a landmark Asia-Pacific trade agreement in Santiago on Thursday, as an antidote to the increasingly protectionist bent of the United States, which last year pulled out of the pact.

The signing ceremony comes the day after Europe and the International Monetary Fund urged U.S. President Donald Trump to step back from the brink of a trade war sparked by plans to slap duties on steel and aluminum imports.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will reduce tariffs in countries that together amount to more than 13 percent of the global economy — a total of $10 trillion. With the U.S., it would have represented 40 percent.

Even without the U.S., the deal will span a market of nearly 500 million people, making it one of the globe's three largest trade agreements, according to Chilean and Canadian trade statistics.

The original 12-member agreement, known as the Trans-Pacific Partnership (TPP), was thrown into limbo early last year when Trump withdrew from the deal just three days after his inauguration in a bid to protect U.S. jobs.

The 11 remaining nations, led by Japan and Canada, finalized a revised trade pact in January.

Trump has also threatened to dump the North American Free Trade Agreement unless the other two members of the pact, Canada and Mexico, agree to provisions that Trump says would boost U.S. manufacturing and employment. He argues that the 1994 accord has caused the migration of jobs and factories southward to lower-cost Mexico.

The revised agreement, to be signed at 3 p.m. (1800 GMT) Thursday, eliminates some requirements of the original TPP demanded by U.S. negotiators. Those include rules ramping up intellectual property protection of pharmaceuticals, which governments and activists of other member nations worried would raise the costs of medicine.

The final version of the agreement was released in New Zealand on Feb. 21.

In January, Trump told the World Economic Forum in Switzerland that it was possible Washington might return to the pact if it got a better deal. However, New Zealand's trade minister said that was unlikely in the near term, while Japan has said altering the agreement now would be very difficult.

The 11 member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.</s>(SANTIAGO, Chile) — Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs just hours before President Donald Trump announced his plans to impose new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism through global trade.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile’s capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

“Despite the diverse and difficult challenges, the CPTPP is a historic achievement that creates free and fair 21st century rules in the Asia-Pacific region,” Japanese Economy Minister Toshimitsu Motegi said a news conference after the signing of the deal.

The pact that covers 500 million people includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which together account for 13 percent of the global economy. Its success highlights the isolation of the U.S. under Trump’s protectionist rhetoric on trade and his “America first” philosophy.

“It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective,” said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. “It is now a trade bloc that discriminates against the U.S.”

Meltzer said the United States’ ability to shape the rules of trade in the Asia-Pacific region “is very much diminished.”

The U.S., originally the biggest TPP economy, was one of the trade deal’s strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is “a strong sign against the protectionist pressures, and in favor of a world open to free trade, without unilateral sanctions and the threat of trade wars,” Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump’s tariffs — of 25 percent on imported steel and 10 percent on aluminum imports — with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi’s jeans and bourbon.

The EU threat and Trump’s impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries’ consumers, who face higher costs.

The EU considers itself to be caught in the crossfire of a trade dispute, in which Trump has mainly singled out China for being unfair in its commercial deals.

The original TPP was conceived by the U.S. as a counterweight to China’s growing economic influence through a robust trading bloc that excluded the Asian giant. The thinking was that China would have an incentive to open its market and liberalize its policies in an effort to eventually qualify for TPP membership.

“Without the United States, it doesn’t serve that purpose,” said Edward Alden, senior fellow at the Council on Foreign Relations. “It becomes a modest liberalization measure.”

China’s foreign minister, Wang Yi, commented Thursday on the deal before it was signed.

“China did not participate in the CPTPP Agreement. However, China has always been a staunch supporter of trade liberalization and an important participant in Asia-Pacific regional cooperation and economic integration,” Wang Yi said at a news conference.

“Of course, we also hope that the various free trade arrangements in the Asia-Pacific region will be able to communicate and coordinate with each other and form a benign interaction, playing a constructive role in their respective fields in resisting trade protectionism and building an open world economy.”</s>SANTIAGO, Chile (AP) — Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs just hours before President Donald Trump announced his plans to impose new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism through global trade.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile’s capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

“Despite the diverse and difficult challenges, the CPTPP is a historic achievement that creates free and fair 21st century rules in the Asia-Pacific region,” Japanese Economy Minister Toshimitsu Motegi said a news conference after the signing of the deal.

The pact that covers 500 million people includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which together account for 13 percent of the global economy. Its success highlights the isolation of the U.S. under Trump’s protectionist rhetoric on trade and his “America first” philosophy.

“It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective,” said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. “It is now a trade bloc that discriminates against the U.S.”

Meltzer said the United States’ ability to shape the rules of trade in the Asia-Pacific region “is very much diminished.”

The U.S., originally the biggest TPP economy, was one of the trade deal’s strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is “a strong sign against the protectionist pressures, and in favor of a world open to free trade, without unilateral sanctions and the threat of trade wars,” Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump’s tariffs — of 25 percent on imported steel and 10 percent on aluminum imports — with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi’s jeans and bourbon.

The EU threat and Trump’s impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries’ consumers, who face higher costs.

The EU considers itself to be caught in the crossfire of a trade dispute, in which Trump has mainly singled out China for being unfair in its commercial deals.

The original TPP was conceived by the U.S. as a counterweight to China’s growing economic influence through a robust trading bloc that excluded the Asian giant. The thinking was that China would have an incentive to open its market and liberalize its policies in an effort to eventually qualify for TPP membership.

“Without the United States, it doesn’t serve that purpose,” said Edward Alden, senior fellow at the Council on Foreign Relations. “It becomes a modest liberalization measure.”

China’s foreign minister, Wang Yi, commented Thursday on the deal before it was signed.

“China did not participate in the CPTPP Agreement. However, China has always been a staunch supporter of trade liberalization and an important participant in Asia-Pacific regional cooperation and economic integration,” Wang Yi said at a news conference.

“Of course, we also hope that the various free trade arrangements in the Asia-Pacific region will be able to communicate and coordinate with each other and form a benign interaction, playing a constructive role in their respective fields in resisting trade protectionism and building an open world economy.”</s>(AP Photo/Esteban Felix). People take part in a demonstration against the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to the signing of the 11-c...

(AP Photo/Esteban Felix). A man holds a sign against the signing of the Trans-Pacific Partnership, TPP, during a demonstration outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to th...

(AP Photo/Esteban Felix). A woman places banners on the sidewalk, against the signing of the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to the ...

(AP Photo/Esteban Felix). A man shout slogans during a demonstration against the signing of the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to t...

(AP Photo/Esteban Felix). Canada's Minister of International Trade Francois-Philippe Champagne, Chile's Foreign Minister Heraldo Munoz and New Zealand's Trade Minister David Parker, pose for a photograpghers before a signing ceremony of the Comprehensi...

SANTIAGO, Chile (AP) - Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs on the same day that President Donald Trump was expected to formalize new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile's capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

The pact includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Its success highlights the isolation of the U.S. under Trump's protectionist rhetoric on trade and his "America first" philosophy.

"It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective," said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. "It is now a trade bloc that discriminates against the U.S."

Meltzer said the United States' ability to shape the rules of trade in the Asia-Pacific region "is very much diminished."

The U.S., originally the biggest TPP economy, was one of the trade deal's strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is "a strong sign against the protectionist pressures, and in favor of a world open to free trade, without unilateral sanctions and the threat of trade wars," Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump's tariffs - of 25 percent on imported steel and 10 percent on aluminum imports - with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi's jeans and bourbon.

The EU threat and Trump's impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries' consumers, who face higher costs.

Associated Press writer Eva Vergara reported this story in Santiago and AP writer Luis Andres Henao reported from Buenos Aires, Argentina. AP writer Paul Wiseman in Washington contributed to this report.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>Eleven countries are expected to sign a landmark Asia-Pacific trade agreement in Santiago on Thursday, as an antidote to the increasingly protectionist bent of the United States, which last year pulled out of the pact.

The signing ceremony comes the day after Europe and the Monetary Fund urged U. S. President to step back from the brink of a sparked by plans to slap duties on steel and aluminum imports.

The Comprehensive and Progressive Agreement for (CPTPP) will reduce tariffs in countries that together amount to more than 13 percent of the global - a total of $10 trillion. With the United States, it would have represented 40 percent.

Even without the United States, the deal will span a market of nearly 500 million people, making it one of the globe's three largest trade agreements, according to Chilean and Canadian trade statistics.

The original 12-member agreement, known as the (TPP), was thrown into limbo early last year when Trump withdrew from the deal just three days after his inauguration in a bid to protect U. S. jobs.

The 11 remaining nations, led by Japan and Canada, finalized a revised trade pact in January.

Trump has also threatened to dump the North American Free Trade Agreement unless the other two members of the pact, Canada and Mexico, agree to provisions that Trump says would boost U. S. manufacturing and employment. He argues that the 1994 accord has caused the migration of jobs and factories southward to lower-cost Mexico.

The revised agreement, to be signed at 3 p.m. (1800 GMT) Thursday, eliminates some requirements of the original TPP demanded by U. S. negotiators. Those include rules ramping up intellectual property protection of pharmaceuticals, which governments and activists of other member nations worried would raise the costs of medicine.

The final version of the agreement was released in New Zealand on Feb. 21.

In January, Trump told the World Economic Forum in Switzerland that it was possible Washington might return to the pact if it got a better deal. However, New Zealand's trade minister said that was unlikely in the near term, while Japan has said altering the agreement now would be very difficult.

The 11 member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.</s>Malaysia, 10 other Asia-Pacific nations sign sweeping trade deal without US (VIDEO)

Representatives of members of Trans-Pacific Partnership (TPP) trade deal wave as they pose for an official picture after the signing agreement ceremony in Santiago, Chile March 8, 2018. — Reuters pic SANTIAGO, March 9 — Eleven countries including Japan and Canada signed a landmark Asia-Pacific trade agreement without the United States yesterday in what one minister called a powerful signal against protectionism and trade wars.

The deal came as US President Donald Trump vowed earlier in the day to press ahead with a plan to impose tariffs on steel and aluminium imports, a move that other nations and the International Monetary Fund said could start a global trade war.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will reduce tariffs in countries that together amount to more than 13 per cent of the global economy — a total of US$10 trillion (RM39.1 trillion) in gross domestic product. With the United States, it would have represented 40 per cent.

“Today, we can proudly conclude this process, sending a strong message to the international community that open markets, economic integration and international cooperation are the best tools for creating economic opportunities and prosperity,” said Chilean President Michelle Bachelet.

Heraldo Munoz, Chile’s minister of foreign affairs, said he expected Chile’s trade with China, its top trading partner, to continue growing alongside trade with CPTPP countries.

Even without the United States, the deal will span a market of nearly 500 million people, making it one of the world’s largest trade agreements, according to Chilean and Canadian trade statistics.

The original 12-member agreement, known as the Trans-Pacific Partnership (TPP), was thrown into limbo early last year when Trump withdrew from the deal three days after his inauguration. He said the move was aimed at protecting US jobs.

The 11 remaining nations finalised a revised trade pact in January. That agreement will become effective when at least six member nations have completed domestic procedures to ratify it, possibly before the end of the year.

“We are very hopeful like others that we will see the CP TPP coming into effect about the end of the year or shortly thereafter,” said Australia Trade Minister Steven Ciobo.

The revised agreement eliminates some requirements of the original TPP demanded by US negotiators, including rules to ramp up intellectual property protection of pharmaceuticals. Governments and activists of other member nations worry the changes will raise the costs of medicine.

The final version of the agreement was released in New Zealand on February 21. The member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

“We’re proud ... to show the world that progressive trade is the way forward, that fair, balanced, and principled trade is the way forward, and that putting citizens first is the way forward for the world when it comes to trade,” Canadian Trade Minister Francois-Phillippe Champagne said.

In January, Trump, who also has threatened to pull the United States out of the North American Free Trade Agreement, told the World Economic Forum in Switzerland that it was possible Washington might return to the TPP pact if it got a better deal. However, New Zealand’s trade minister said that was unlikely in the near term, while Japan has said altering the agreement now would be very difficult.

Yesterday, Munoz said CPTPP was not an agreement against anyone and several governments had said they want to join it.

Trump vowed yesterday to impose a 25 per cent tariff on steel imports and 10 per cent tariff on aluminium imports, although he said there would be exemptions for Nafta partners Mexico and Canada.

He announced the plan for tariffs last week, rattling financial markets.

Mexican Economy Minister Ildefonso Guajardo, in Santiago for the CPTPP signing, told Reuters he would not allow the United States to use the tariffs to pressure it in the Nafta talks. Champagne told Reuters that Canada would not accept duties or quotas from the United States. — Reuters</s>SANTIAGO, Chile (AP) — Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs on the same day that President Donald Trump was expected to formalize new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism through global trade.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile's capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

The pact that covers 500 million people includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Its success highlights the isolation of the U.S. under Trump's protectionist rhetoric on trade and his "America first" philosophy.

"It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective," said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. "It is now a trade bloc that discriminates against the U.S."

Meltzer said the United States' ability to shape the rules of trade in the Asia-Pacific region "is very much diminished."

The U.S., originally the biggest TPP economy, was one of the trade deal's strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is "a strong sign against the protectionist pressures, and in favor of a world open to free trade, without unilateral sanctions and the threat of trade wars," Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump's tariffs — of 25 percent on imported steel and 10 percent on aluminum imports — with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi's jeans and bourbon.

The EU threat and Trump's impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries' consumers, who face higher costs.

The EU considers itself to be caught in the crossfire of a trade dispute, in which Trump has mainly singled out China for being unfair in its commercial deals.

The original TPP was conceived by the U.S. as a counterweight to China's growing economic influence through a robust trading bloc that excluded the Asian giant. The thinking was that China would have an incentive to open its market and liberalize its policies in an effort to eventually qualify for TPP membership.

"Without the United States, it doesn't serve that purpose," said Edward Alden, senior fellow at the Council on Foreign Relations. "It becomes a modest liberalization measure."

China's foreign minister, Wang Yi, commented Thursday on the deal before it was signed.

"China did not participate in the CPTPP Agreement. However, China has always been a staunch supporter of trade liberalization and an important participant in Asia-Pacific regional cooperation and economic integration," Wang Yi said at a news conference.

"Of course, we also hope that the various free trade arrangements in the Asia-Pacific region will be able to communicate and coordinate with each other and form a benign interaction, playing a constructive role in their respective fields in resisting trade protectionism and building an open world economy."

Associated Press writer Eva Vergara reported this story in Santiago and AP writer Luis Andres Henao reported from Buenos Aires, Argentina. AP writers Paul Wiseman in Washington and Joe McDonald in Beijing contributed to this report.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>“This will be open to anyone who accepts its components,” Mr. Muñoz said. “It’s not an agreement against anyone. It’s in favor of open trade.”

On Thursday, Mr. Trump went in the opposite direction, announcing tariffs on steel and aluminum imports to the United States. He said that Canada and Mexico were being exempted for now, and that allies like Australia could later be excluded. His order could affect Brazil, China, Germany, Japan, South Korea and Turkey, though he said he would have leeway to add or take countries off the list as he sees fit.

The United States has “gone from being a leader to actually being the No. 1 antagonist and No. 1 source of fear” on trade, said Jeffrey Wilson, the head of research at Perth U.S.-Asia Center at the University of Western Australia. “If you’re a trade policy maker in Asia, your No. 1 fear is that Trump is going to take a swing at you.”

He added that such fears could prompt countries, however reluctantly, to tether themselves more closely to China. “The U.S. is really delivering the region to China at the moment,” Mr. Wilson said.

The new agreement — known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — drops tariffs drastically and establishes sweeping new trade rules in markets that represent about a seventh of the world’s economy. It opens more markets to free trade in agricultural products and digital services around the region. While American beef faces 38.5 percent tariffs in Japan, for example, beef from Australia, New Zealand and Canada will not.

Once it goes into effect, the agreement is expected to generate an additional $147 billion in global income, according to an analysis by the Peterson Institute for International Economics. Its backers say it also bolsters protections for intellectual property and includes language that could prod members to improve labor conditions.</s>(AP Photo/Esteban Felix). People take part in a demonstration against the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to the signing of the 11-c...

(AP Photo/Esteban Felix). A man holds a sign against the signing of the Trans-Pacific Partnership, TPP, during a demonstration outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to th...

(AP Photo/Esteban Felix). A woman places banners on the sidewalk, against the signing of the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to the ...

(AP Photo/Esteban Felix). A man shout slogans during a demonstration against the signing of the Trans-Pacific Partnership, TPP, outside La Moneda presidential palace, in Santiago, Chile, Wednesday, March 7, 2018. Protesters voiced their opposition to t...

(AP Photo/Esteban Felix). Canada's Minister of International Trade Francois-Philippe Champagne, Chile's Foreign Minister Heraldo Munoz and New Zealand's Trade Minister David Parker, pose for a photograpghers before a signing ceremony of the Comprehensi...

SANTIAGO, Chile (AP) - Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement Thursday to streamline trade and slash tariffs just hours before President Donald Trump announced his plans to impose new tariffs on aluminum and steel to protect U.S. producers.

Trump withdrew the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism through global trade.

The ministers dropped key provisions that the Americans had required on protection of intellectual property, among others. The renegotiated pact signed in Chile's capital was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP.

"Despite the diverse and difficult challenges, the CPTPP is a historic achievement that creates free and fair 21st century rules in the Asia-Pacific region," Japanese Economy Minister Toshimitsu Motegi said a news conference after the signing of the deal.

The pact that covers 500 million people includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which together account for 13 percent of the global economy. Its success highlights the isolation of the U.S. under Trump's protectionist rhetoric on trade and his "America first" philosophy.

"It leaves the U.S. at a disadvantage from both a trade and a broader strategic perspective," said Joshua Meltzer, senior fellow in the global economy and development program at the Brookings Institution. "It is now a trade bloc that discriminates against the U.S."

Meltzer said the United States' ability to shape the rules of trade in the Asia-Pacific region "is very much diminished."

The U.S., originally the biggest TPP economy, was one of the trade deal's strongest supporters before Trump took office. Trump has said he prefers country-to-country deals and is seeking to renegotiate several major trade agreements, including the North American Free Trade Agreement that includes the U.S., Mexico and Canada.

This is "a strong sign against the protectionist pressures, and in favor of a world open to free trade, without unilateral sanctions and the threat of trade wars," Chilean Foreign Minister Heraldo Munoz said.

The European Union said this week that it is ready to retaliate against Trump's tariffs - of 25 percent on imported steel and 10 percent on aluminum imports - with counter-measures against iconic U.S. products like Harley Davidson motorcycles, Levi's jeans and bourbon.

The EU threat and Trump's impending announcement on the tariffs were expected to escalate the risk of a trade war, in which nations try to punish each other by hiking taxes on traded goods. Experts say that tends to harm both exporting nations as well as importing countries' consumers, who face higher costs.

The EU considers itself to be caught in the crossfire of a trade dispute, in which Trump has mainly singled out China for being unfair in its commercial deals.

The original TPP was conceived by the U.S. as a counterweight to China's growing economic influence through a robust trading bloc that excluded the Asian giant. The thinking was that China would have an incentive to open its market and liberalize its policies in an effort to eventually qualify for TPP membership.

"Without the United States, it doesn't serve that purpose," said Edward Alden, senior fellow at the Council on Foreign Relations. "It becomes a modest liberalization measure."

China's foreign minister, Wang Yi, commented Thursday on the deal before it was signed.

"China did not participate in the CPTPP Agreement. However, China has always been a staunch supporter of trade liberalization and an important participant in Asia-Pacific regional cooperation and economic integration," Wang Yi said at a news conference.

"Of course, we also hope that the various free trade arrangements in the Asia-Pacific region will be able to communicate and coordinate with each other and form a benign interaction, playing a constructive role in their respective fields in resisting trade protectionism and building an open world economy."

Associated Press writer Eva Vergara reported this story in Santiago and AP writer Luis Andres Henao reported from Buenos Aires, Argentina. AP writers Paul Wiseman in Washington and Joe McDonald in Beijing contributed to this report.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Eleven countries in Asia, North America, Oceania, and South America sign the revised Trans-Pacific Partnership trade agreement.