A bipartisan group of Senators want currency cheating addressed in TPA bill.
The movement keeps growing: More than 115,000 Americans have now written their Members of Congress to demand Congress include strong trade enforcement provisions in future trade deals such as the Trans-Pacific Partnership (TPP) and ensure there are strong, enforceable rules in place to stop against currency manipulation.
And the Alliance for American Manufacturing (AAM) is making sure those 115,000 voices are heard. Members of our field team are converging on Capitol Hill today and Wednesday to meet with Members of Congress and their staff to talk about trade, pressing the point that American manufacturing can benefit from trade — but only if there is truly a level-playing field for workers and companies.
Their visit is well-timed. The Senate kicked off debate Tuesday morning on amendments to the Trade Promotion Authority (TPA) bill — also known as fast track — including one offered by Sens. Debbie Stabenow (D-Mich.) and Rob Portman (R-Ohio) that would require U.S. negotiators to seek enforceable rules in trade deals to stop currency cheating.
As Stabenow noted on Tuesday, currency manipulation puts American companies at a distinct disadvantage, and it’s arguably the most significant trade barrier facing American manufacturers today. The weak yen, for example, gives Japanese automakers an added $6,000 in profit on the average car, while some make and models bring in an additional $11,000 in profit.
“When foreign competitors tilt the playing field by manipulating their currencies, Ohio workers suffer,” Portman echoed in a statement. “That means American-made exports are more expensive, while our competitors’ exports into the United States are cheaper. That’s not fair for American workers who can compete with anyone on a level playing field.”
In a speech on the Senate floor, Stabenow noted that there are clear guidelines in place by institutions such as the International Monetary Fund (IMF) that dictate what currency manipulation is — but it is up to trade negotiators to ensure enforceable rules are put in place to prevent it.
“If in fact currency manipulation is the mother of all trade barriers, why in the world would we not make it clear that currency manipulation be a clear negotiating objective for the United States of America?” Stabenow said. “Let me just say again, we can compete with everybody… but it’s up to us, in Congress, working with the White House, to make sure the rules are fair.”
The bipartisan amendment is cosponsored by several Senators, from Sens. Tammy Baldwin (D-Wis.) and Sherrod Brown (D-Ohio) to Sens. Richard Burr (R-N.C.) and Lindsey Graham (R-S.C.).
While the currency issue has garnered significant press over the past several weeks, it’s not the only message the AAM team is bringing to Capitol Hill. We’re also urging Members to take action to ensure stronger trade enforcement measures are put in place for American workers and companies.
Current remedies aren’t working. As it stands now, U.S. companies and workers are at a distinct disadvantage, as they must show that they've been impacted by unfair trade practices before they can seek relief. That means manufacturers often endure plant closures and layoffs before anything is remedied.
That’s what happened in 2014, when the Commerce Department and International Trade Commission found significant steel dumping by countries such as South Korea. Tariffs were eventually issued on Oil Country Tubular Goods (OCTG) products, but as United Steelworkers International Vice President Tom Conway recently testified, workers and companies still suffered.
“The simple truth is, when we win a case, we simply stabilize the market — we rarely get back to where we were,” Conway testified. “We are ratcheting down our industrial sectors into oblivion. In the process, we hemorrhage good jobs just like is happening right now in the steel industry.”
While scheduling remains up in the air, votes on the TPA amendments could began as early as Tuesday afternoon. We’ll update the blog when those votes happen.
And if you haven’t already, be sure to join the 115,000 people who already have raised their voice for strong trade laws.