APEC leaders agree on trade deal outline
Nine APEC countries including Australia have agreed on a framework to eliminate tariffs as soon as possible.
US president Barack Obama announced that the leaders of nine Asia-Pacific Economic Cooperation countries have reached a broad agreement on the free-trade pact - known as the Trans-Pacific Partnership (TPP) - in the Hawaiian capital, Honolulu.
The pact sets out to eliminate all tariffs and introduce new uniform labour and intellectual property standards across the Asia-Pacific. The leaders are aiming to finalise the deal next year.
"With nearly 500 million consumers between us, there is so much more we can do together," Mr Obama said after the meeting of TPP leaders, ahead of the official APEC summit.
"Together we can boost exports and create more goods available for our consumers, create new jobs and compete and win in future markets.
"I'm confident we can get this done."
The pact is a centrepiece of the Obama administration's project of cementing America's role in the Asia-Pacific region, which it believes could secure the country's economic future.
"The United States is a Pacific power and we are here to stay," Mr Obama said after the announcement at a meeting of regional CEOs.
Prime Minister Julia Gillard believes the agreement will benefit Australia's entire economy, particularly primary producers.
"For our farmers this is a very important development," she said.
But Ms Gillard says it is too early to say how the deal will boost Australian jobs and the nation's bottom line.
Officials will now work on the fine print and hope to sign off on the agreement next year.
"That is an important statement of ambition about getting this done," Ms Gillard said.
The nine countries involved are Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.
They account for one-quarter of the world's Gross Domestic Product.
Japan has indicated it would like to join the group too but will face pressure from its own farmers who want to keep government subsidies.
However Tokyo's participation means that it could take years to complete the partnership.
Ms Gillard says Tokyo will not be allowed to delay progression of the agreement.
"We don't want that to slow down the pace of development," she said.
Trade Minister Craig Emerson has also been involved in negotiating the TPP agreement.
"We're thrilled that the president of the United States is so keen on this," he said.
Dr Emerson says the economic benefits to Australia will be better understood once the deal is finalised in 2012.
"Realistically you need to wait until the TPP takes shape," he said.
"Economists are wonderful people but they can make things up too.
"And you would be making it up if you did some economic modelling about a concept, and whatever you plugged in you'll get a result on the other side, and everyone will say wow, look at that, isn't it terrific?"