Unnamed country pulls out of TPP after 'agreement in principal' reached

One of the 11 countries involved in the Trans-Pacific Partnership (TPP) discussions has pulled out, but an "agreement in principle" has been reached.

New Zealand Trade Minister David Parker says there was applause after the agreement was reached. 

It was then handed over to an official and one country pulled out.

He says the country that pulled out was not New Zealand or Canada.

Japan's prime minister Shinzo Abe will now take over negotiations with the country that pulled out, ahead of today leaders' meeting (tonight New Zealand time).

Investor-state dispute settlement clauses, which Labour wanted to negotiate New Zealand out of, have been "improved but not resolved," Dr Parker said.

He said they have negotiated some - but not all - of what the Government wants.

Prime Minister Jacinda Ardern is meeting with world leaders at APEC in Vietnam. She is accompanied by Foreign Minister Winston Peters and Trade Minister Dr Parker.