Former Economic Advisors Call for TPA, Warn Against Currency Rules in FTAs
The inclusion of currency rules in future U.S. free trade agreements, such as the Trans-Pacific Partnership, would hamper U.S. monetary policy “to the detriment of all Americans,” said a group of former presidential economic advisors on March 5. “Monetary policy…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
affects the value of currencies,” said the former officials, including former Federal Reserve chairmen Ben Bernanke and Alan Greenspan, in a letter to House and Senate leadership. “Attempts to penalize countries for supposedly manipulating exchange rates would thus impose constraints on U.S. monetary policy, to the detriment of all Americans.” Some House Democrats, namely Ways and Means ranking member Sandy Levin, D-Mich., have recently sparred with the administration over currency rules in trade, saying the U.S. economy wouldn't be harmed (see 1502250015). The former advisors also called for Trade Promotion Authority in order to lock down free trade agreements that will boost U.S. productivity and give consumers cheaper access to goods. They admitted, however, some Americans suffer through trade pacts. “Trade is beneficial for our society as a whole, but the benefits are unevenly distributed and some people are negatively affected by increased global competition,” said the letter, according to a copy released by the Office of the U.S. Trade Representative. “The economy-wide benefits resulting from increased trade provide resources to make progress on important social goals, including helping those who are adversely affected.