US President-elect Donald Trump's decision to leave the 12-nation Trans-Pacific Partnership (TPP) has given a strong blow to a massive trade deal that was an important plank of President Barack Obama's re-engagement with Asian nations. Trump has said that instead of one agreement that would account for 40 per cent of world trade, he would plan to negotiate one-on-one trade deals that will be more favourable for American workers.

Analysts say coming out of the deal would open new trade opportunities for China, which was any way not a part of the TPP. Negotiators toiled for seven years on the TPP which supporters say would encourage additional trade among the 12 nations.

It would have also given rise to worker incomes, place important protections on intellectual property, protect labor rights and incorporate environmental safeguards. Critics have said the deal, which was negotiated in secret, of being overly favourable to global corporations, and enshrine tough intellectual property restrictions. The Council on Foreign Relations in a report this month, backed the TPP, saying the pact would benefit manufacturers with a more level playing field in Asia. This would boost US exports, especially agricultural goods.

While some American jobs could be lost to overseas workers, TPP supporters argued that the deal was better overall for Americans, because it would result in lower prices on imported consumer goods, they claimed. The report, citing research by the Petersen Institute for International Economics, said that the TPP offered potential annual gains of $78 billion for the US economy.