The US and the Euro zone are finally negotaiting the long discussed free-trade party. This part would create an economic zone that covers 40% of the world’s GDP. Obama has taken a large intiative in expanding the free-trade discussion and further progress is happening in Aisian countries such as Singapore, Australia, Vietnam and Japan in the Trans-Pacific Partnership. The big missing piece in the free-trade agreement in China as the world’s biggest exporter of manufactured goods. this has evolved into a almost combative nature by using the free-trade agreements as part of the “China strategy” for the US.
“Pact” is the jargon.
With the failure of the Doha Round of the GATT / WTO process we’ve seen a plethora of bilateral deals around the world, though the US is not as active as many. The politics however require getting the Senate to approve any deal.
More important for Asia is TPP (trans pacific partnership). Unfortunately the more parties that participate, the harder it is to reach a deal. The fewer that participate, the less incentive for anyone to take it seriously. I’m not very optimistic that we’ll see an economically meaningful deal. If nothing else, all the easy stuff was already done under the GATT and WTO negotiations.