Company cites market barriers among reasons for leaving.
The ink isn’t even dry and we are already seeing proof that this massive agreement will sell out American workers and roll back the remarkable recovery of our auto industry.
That’s Sen. Sherrod Brown of Ohio, in a release just sent out yesterday. What’s he talking about?
He’s talking about Ford Motor Company’s announcement that it’s shutting down operations in two major Asian markets – Indonesia and Japan. Japan is a big part of the Trans-Pacific Partnership (TPP) trade agreement, which, according to the Obama administration, will make it easier to export American goods.
So why is Ford packing up? According to the Wall Street Journal:
The decision follows years of frustration for U.S. auto makers looking to make inroads in Japan, among the top car markets in the world. American automotive executives have long complained about non-tariff barriers, including a web of regulations that put importers at a disadvantage.
According to Ford, the TPP isn’t going to do much to alleviate that situation. That’s why the company opposes the pact. And the lack of an enforceable currency manipulation provision in the deal is a big part of that. Ford has cited a weaponized Japanese exchange rate policy as the big reason why it won’t back the deal.
Steve Beguin, a Ford executive, told a congressional panel in early January that a chronically manipulated yen has effectively created an auto market that foreign companies can't crack:
(Practied currency manipulation) has been very, very effective, as seen in the fact that Japan today — and for decades running, remains the most closed auto market among developed economies.
Ford packing up in Japan and Indonesia is recent news. But it's been saying for years that Japan's currency manipulation is a serious problem. According to researchers at the Economic Policy Institute, such manipulation has also cost an absolute ton of American jobs.