Getting tough on China's currency manipulation just became more imminently important
Currency manipulation is one of a handful of dead horses here at ManufactureThis. We've explained countless times why it's imperative for the United States to get serious about dealing with this trade-distorting issue.
For the one or two of you that may have forgotten, here's a quick reminder:
- Currency manipulation imposes a hidden tax on American manufacturing companies.
- Currency manipulation is a protectionist tactic countries use to prop up their own manufacturing sectors and boost their own exports, leading to huge American trade deficits.
- Currency manipulation is an assault on the free market and free trade.
The bottom line? If we stop allowing countries like China and Japan to manipulate the value of their currency, the United States stands to see more jobs, more capital investment, and more revenue -- tax hikes not necessary.
So why is this suddenly "more imminently important," as the title says?
Well, as of yesterday it seems China is positioning itself to join the Trans Pacific Partnership (TPP), according to Politico.
As the Alliance for American Manufacturing (AAM) mentioned this morning in our Early Shift update:
Lawmakers have encouraged the administration to include currency manipulation provisions in the trade deal. If serial-manipulator China joins the TPP, including those provisions is more important than ever.
There is a bi-partisan bill in the House of Representatives right now that would add currency manipulation to the list of actionable offenses around which American businesses could build a trade case. Ask your congress person to co-sponsor or support H.R. 1276, the Currency Reform and Fair Trade Act.
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