Letter to USTR: Address the issue in “meaningful and concrete ways.”
A bipartisan group of Senators on Tuesday urged the Obama administration to include rules governing currency manipulation in global trade agreements.
In a letter to U.S. Trade Representative Michael Froman and Treasury Secretary Jack Lew, Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) expressed concern over currency provisions in the Trans-Pacific Partnership (TPP).
Brown and Portman — who were joined by Sens. Chuck Grassley (R-IA), Debbie Stabenow (D-MI), Richard Burr (R-NC), Jeff Sessions (R-AL), and Lindsey Graham (R-SC) — warned that recent devaluations by China have caused countries that are party to the still-under-negotiation TPP to also devalue their currencies.
From the letter:
We fear these recent currency interventions could lead to a pattern of competitive devaluation within the Asia-Pacific that could hurt US exports for years to come. Therefore, it is extremely important that TPP addresses currency issues in meaningful and concrete ways.
The Alliance for American Manufacturing applauds Sens. Brown and Portman and the other signatories for their continued efforts to ensure currency manipulation is addressed in America's trade deals.
But time is running out. President Obama said on Wednesday he is “confident that we can get it done, and I believe we can get it done this year.”
Currency manipulation will be on the agenda next week when China’s President Xi Jingping is in town. While the country is not participating in TPP negotiations, President Obama has indicated he expects the country with the world's second-largest economy to assume “responsibility” when it comes to global trade.
In our opinion, China’s recent actions show they’re anything but.