Officials from the United States and 11 other countries bordering the Pacific are trying to complete a trade agreement by the end of the year that could help all of our economies and strengthen relations between the United States and several important Asian allies. But hard bargaining lies ahead.

The Obama administration said it wants a “next-generation” agreement that, in addition to lowering tariffs, lowers investment restrictions, improves labor rights, encourages environmental protection and reduces government favoritism of state-owned businesses. That is an ambitious agenda considering that more than 150 countries are struggling to complete a much simpler deal at the World Trade Organization.

The Trans-Pacific Partnership, as these talks are known, is seen as a way around the stalled W.T.O. talks, which have been under way since 2001. So, too, are the recently started trade negotiations between the United States and the European Union. The hope among some American officials is that by completing deals with Europe and Pacific nations, Washington will set an example for the rest of the world to follow.

The 12 Trans-Pacific countries — the United States, Canada, Mexico, Peru, Chile, Japan, Vietnam, Malaysia, Singapore, Brunei, Australia and New Zealand — together account for about 40 percent of the global economy.