Stabenow, Manufacturing Alliance Call for TPP to Combat Japanese Currency
U.S. exports to Japan are dropping due to ongoing undervaluation of the Japanese yen, and Congress needs to tackle currency manipulation in the Trans-Pacific Partnership, said a paper released by the Economic Policy Institute on Feb. 4 (here). The author of the paper, EPI Director of Trade and Manufacturing Policy Research Robert Scott, joined Alliance for American Manufacturing President Scott Paul and Sen. Debbie Stabenow, D-Mich., on a conference call on the same day to discuss the paper.
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Japanese currency undervaluation and export losses are slashing jobs across the country, but most acutely in Michigan, said those on the call. “That means going forward on trade policy, both TPA and the Trans-Pacific Partnership, becomes incredibly important,” said Stabenow. “We clearly don’t have [a level playing field] with Japan right now.” Stabenow said “strong and enforceable” currency provisions must be included in TPP. That statement echoes a letter Stabenow sponsored to administration officials in late 2013, which urges currency rules in free trade agreements (see 13092423). Sixty senators signed the letter.
Currency provisions should be included in both TPA and TPP, and separate legislation to other currency specifically may also be acceptable, said Stabenow. So far, the Office of the U.S. Trade Representative hasn't relayed information about currency negotiations in TPP, she said, while adding the TPP needs to also open the Japanese auto market to U.S. companies. Japan and the U.S. are two of the total 12 TPP parties.