U.S. Outlines New Pacific Free-Trade Initiative

U.S President Barack Obama suggests the free-trade zone could help spur global economic growth.

U.S. President Barack Obama has pitched a plan to create a trans-Pacific free trade zone as a way to tackle weak economic growth around the world.

Speaking at the Asia-Pacific Economic Cooperation summit in Honolulu, Obama laid out the framework for a vast free-trade agreement called the Trans-Pacific Partnership that would boost American leadership in the region.

He also threatened China with punitive action if it did not start "playing by the rules" on currency and trade.

But Obama's Chinese counterpart, Hu Jintao, presented a competing trade agenda that would work through existing trade agreements.

compiled from agency reports