For Immediate Release:
May 01, 2014
Contact: Colin Dunn
(202) 400 - 2609
AAPC Statement on U.S. Chamber Analysis on Trans-Pacific Partnership
Blunt Notes Strong, Enforceable Currency Rules Critical to Successful TPP
WASHINGTON, D.C. – American Automotive Policy Council President Matt Blunt today commented on the U.S. Chamber of Commerce analysis that found that the Trans-Pacific Partnership (TPP) would create jobs but it failed to address critical issues like currency manipulation and non-tariff barriers.
“Clearly, the TPP has the potential to create jobs, but this potential can only be realized if an agreement addresses non-tariff barriers and includes a prohibition against currency manipulation," Blunt said. “As part of the largest exporting sector in the U.S., American automakers have introduced a currency manipulation proposal that would ensure America’s trading partners play by the existing rules. Our companies have learned from years of experience that determined countries can easily offset tariff reductions by manipulating their currencies and by erecting non-tariff barriers. It is critical that the TPP negotiations result in a high-standard, 21st century agreement that ensures America’s businesses and workers can compete on a level playing field.”
In a 2012 study, C. Fred Bergsten and Joseph E. Gagnon of the Peterson Institute for International Economics argued that currency manipulation by foreign countries has cost the United States as many as 5 million jobs. "Future trade agreements should include strong enforceable language to prevent currency manipulation," Gagnon said.
As the New York Times Editorial Board recently pointed out, currency manipulation has undermined international trade agreements which is one of the reasons it opined in favor of strong and enforceable currency manipulation provisions in the Trans-Pacific Partnership.
More on the Trans-Pacific Partnership and currency manipulation can be found here: http://www.americanautocouncil.org/tpp
More of Dr. Gagnon’s work on currency manipulation can be found here: http://www.piie.com/publications/interstitial.cfm?ResearchID=2347
The American Automotive Policy Council, Inc. (AAPC) is a Washington, D.C. association that represents the common public policy interests of its member companies Chrysler Group LLC, Ford Motor Company and General Motors Company.