April 18, 2014: Another miss from Treasury on currency manipulation

Posted by mmcmullan on 04/18/2014

Good morning,

And welcome to the Early Shift. It’s a big weekend for Peeps fans out there. If you’re among the majority of Americans who didn’t win the Washington Post’s Peeps diorama contest, just eat them instead (and enjoy the pretty pictures).

But enough about Peeps (I know; there’s never enough). What’s happened this week in manufacturing news?

Well. The Department of the Treasury released its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies – which is an opportunity for the administration to call out currency manipulators. The Obama White House, now in its sixth year of governing, turned down the opportunity to get serious about China’s unfair exchange rate for the 11th time in a row (that’s 11 times after candidate Obama suggested he’d do otherwise while on the ’08 campaign trail). It’s an unfortunate fact that advocates for smarter trade policy have come to live with. Said Alliance for American Manufacturing (AAM) President Scott Paul:

(The Treasury report is) not a surprise. But it is surprising that the decision comes in the wake of China’s moves to both devalue the yuan in the short term and dramatically slow its appreciation over the past year.

In fact, the rate of the yuan’s appreciation is far less under President Obama than it was under President Bush.

But that’s not the only arena in which currency manipulation remains a topic of discussion: Ford Motor Company is continuing to push for a currency rule in the Trans-Pacific Partnership (TPP) trade negotiations. Reports the Detroit News:

The proposed …  trade pact is facing strong opposition from U.S. automakers and the United Auto Workers union. And in recent weeks the top two Democrats in Congress both said they oppose fast-track legislation that would allow for a quick up or down vote on an agreement without changes.

And ICYMI: Willy Shih, professor of management practice at Harvard Business School and something of an expert on the state of American manufacturing, gives the country’s efforts to revive the industry a C-. Read more about Shih’s take in IndustryWeek.

And that’s it. That’s it and that’s all, America. Have a heckuva weekend, and we’ll catch you after the holiday. Go easy on the chocolate this Sunday.

-AAM

Related recent Blogs

@KeepitMadeinUSA on Twitter

  • ICYMI: Senate passed its version of Highway Trust Fund bill; shortened length of extension to Dec. instead of May 2015. Heads back to House. 54 min 35 sec ago
  • The Senate is now debating legislation to reauthorize the Highway Trust Fund (well, until May 2015). Watch on @cspan: http://t.co/7h65biQlFz 4 hours 46 min ago
  • RT @SteveRattner: Amazing shift in US jobs -- gone from making things to taking care of sick people http://t.co/44ZBilZiCg 5 hours 43 min ago
  • We must be close to election season. Candidates are talking a big game about unfair trade on the campaign trail: http://t.co/vsahfLZSb4 8 hours 7 min ago
  • Looks like @amazon is getting into the 3D printing business. http://t.co/dHa0askSK9 9 hours 30 min ago
  • RT @WisconsinOven: MT @KeepitMadeinUSA @ScottPaulAAM shares ideas in @HuffingtonPost on how to restore American manufacturing leadership:ht… 10 hours 15 min ago
  • BTW, ALL the machines at that Indianapolis Adidas plant helped produce LeBron jerseys. http://t.co/InVSaeooRv Plus more in Iowa & Cleveland. 10 hours 15 min ago
  • !!! RT @darrenrovell The LeBron jersey assembly line at Adidas facility in Indianapolis http://t.co/FCcJz76kpa 10 hours 17 min ago
  • Wisconsin companies are going on a national tour to promote American manufacturing: http://t.co/r08lzCvW83 11 hours 6 min ago
  • This --> http://t.co/JEuzlRwYjr @USAToday examines the myth of the STEM workers shortage. 1 day 6 hours ago