The US is moving at breathtaking speed in its “pivot to Asia” (at least in diplomatic terms which generally make glaciers look like a gallop). The move to engage Myanmar is groundbreaking and now we have this, from the AFR:
A US-led Pacific free trade area could be in place by the end of next year under an unexpected agreement among 11 member countries including Australia at the East Asia Summit.
Prime Minister Julia Gillard announced after the meeting on Tuesday that the 11 leaders had endorsed a proposal by US President Barack Obama to conclude negotiations by October next year, raising the prospect of the biggest breakthrough in global trade for several years.
She said Mr Obama had endorsed a high level of ambition for the quality of the agreement and Australia welcomed his plans.
The existing TPP countries comprise about 30 per cent of the world’s gross domestic product but the proposal is controversial because at this stage it does not include China, the world’s second-biggest economy.
The TPP includes Brunei Darussalam, Chile, New Zealand, Singapore, Australia, Canada, Malaysia, Mexico, Peru, the USA and Vietnam.
China might be feeling a little surrounded.
