Japanese business leaders on Monday hailed the conclusion of a Trans-Pacific Partnership agreement, saying the free trade pact will help boost exports when it comes into effect.

“We welcome the broad agreement reached,” Sadayuki Sakakibara, chairman of Japanese Business Federation, commonly known as Keidanren, said in a statement.

After more than five years of negotiations, the United States, Japan and 10 other countries reached a broad agreement Monday in the Pacific Rim trade initiative, which covers around 40 percent of the global economy.

The pact foresees the United States eliminating tariffs on more than 80 percent of auto parts shipped from Japan.

The Japanese government also relented on some tariffs it sought to maintain on sensitive agricultural products.

Sakakibara, the head of the nation’s largest business lobby, said it will be important for many firms to make full use of the new framework to strengthen their global supply chains.

He added, Japan should also view the agreement as an opportunity to strengthen its agriculture sector, which will face tougher competition under the pact.

Yoshimitsu Kobayashi, chairman of the Japan Association of Corporate Executives, said he hopes the 12 countries involved will ratify the pact smoothly, while Akio Mimura, chairman of the Japan Chamber of Commerce and Industry, said the TPP will help small and midsize businesses to expand their operations overseas.

Car manufacturers in Japan’s export-heavy economy are likely to benefit.

“We welcome that tariffs on automobile parts will be removed immediately between Japan and the United States; and with Canada, relatively high tariffs on vehicles will be removed in a short period of time,” Fumihiko Ike, chairman of Honda, said in a statement. Ike also heads the Japan Automobile Manufacturing Association.

Japan Iron and Steel Federation Chairman Koji Kakigi said he hopes the TPP will strengthen relations between the 12 countries and boost their economies.