An international trade deal has been struck between the US and Australia, as the United States and China sign an agreement to regulate their markets for goods and services.
The agreement comes after months of wrangling over trade deals between the two countries.
US President Donald Trump signed the deal on Friday, which requires the US to negotiate a free trade deal with Australia.
The US and China signed an agreement in Washington DC on Friday that will require the US, Australia and the other 11 nations to negotiate an agreement on trade deals in the coming months.
The US is expected to seek more than $200 billion in new trade deals with the 12-nation bloc, according to the US Trade Representative.
“The TPP will create a level playing field for American businesses and consumers, with lower tariffs, stronger intellectual property protections, greater transparency and the protection of American workers, jobs and communities,” US Trade Secretary Doug Shulman said in a statement.
Australia’s new president, Scott Morrison, said the US-Australia trade agreement was an important step forward in the relationship.
“The US-Australian FTA is an important tool in building our economies and creating new opportunities for Australians and Americans,” Mr Morrison said.
“The agreement is a significant step towards a better future for Australia and our people.”
The agreement will be the first of its kind between the countries since the late 1990s.
Australia will have to apply to join the deal in 2019, when it is expected it will join the Trans-Pacific Partnership (TPP).
It will have access to the Transatlantic Trade and Investment Partnership (TTIP) as well as other agreements with the European Union.
Read more:Australia’s President Scott Morrison said the TPP was an “important step forward” in the partnership.
Australian Prime Minister Scott Morrison (R) said the Australian Government was “extremely proud” of the agreement.
In the United Kingdom, Theresa May has confirmed that Britain will not join the pact.
Britain will continue to adhere to its EU membership rules.
In Germany, Chancellor Angela Merkel has said that Germany is “very interested” in signing the deal.
European Commission President Jean-Claude Juncker told reporters that the EU was in contact with the US about joining the trade deal.
German Chancellor Angela Trump is seen at the Brandenburg Gate during a visit to the Brandenberg Gate in Berlin, Germany, October 29, 2018.
The German Chancellor said the European Commission was in close contact with US President-elect Donald Trump and that the trade agreement would “enable” the two parties to “accelerate their work together”.
Trump and Merkel meet at the White House on Tuesday, ahead of a meeting between the leaders of the two nations in Washington.
Germany’s President Joachim Gauck said the deal would “change the world”.
“The deal will make us the biggest trading bloc in the world,” he said.
“The trade agreement will create jobs for millions of people in our country, and it will create the biggest single source of foreign direct investment in the United State.”
Merkel is expected on Tuesday to announce that she will seek to negotiate the TPP agreement, which is likely to be signed into law by Trump on Thursday.
Trump has pledged to “immediately renegotiate” the agreement and has previously threatened to withdraw from the deal if he can’t win approval for the agreement from Congress.
More:Australia and New Zealand have also said they will seek an exit from the TPP.
Earlier, Trump said he would withdraw from an agreement with the United Arab Emirates (UAE), which has a similar deal with the EU.