Japan and Canada, the world's third and tenth largest economies, respectively, verbally agreed to join the US' Asia-Pacific trade accord, the Trans-Pacific Partnership (TPP), during a recent meeting of major leaders in Honolulu. The nine Asia-Pacific nations involved in trade talks also include Malaysia and Vietnam, and President Obama has said that the countries aim to reach an agreement within a year. If the TPP partnership is reached, it would be the US' largest trade pact since NAFTA. Mexico is also said to be interested in joining the TPP.
Canada is interested in joining the trade pact after a blow last week to its proposed Keystone XL pipe line expansion-- the US State Department decided to delay allowing the expansion of TransCanada's Keystone XL pipeline in order to study alternative routes. As a result, Canada is now shifting focus to Asian nations as a potential location for energy exports.
Japan's inclusion in the pact may face opposition from its local government and citizens, as concern grows over the removal of tariffs on some of Japan's most-exported goods, such as cars and rice.