Barack Obama pressed to include currency in Pacific trade deal

Shawn Donnan

The Obama administration faces pressure to include currency provisions in a new Pacific Rim trade pact, with Republicans and Democrats citing swings in the yen as cause for action.

The White House has been trying to avoid addressing the issue in talks with Japan and 10 other countries over a Trans-Pacific Partnership (TPP), since a bipartisan majority in Congress called last year for any resulting pact to include provisions to ban currency manipulation.

However, an unexpected move by the Bank of Japan last week to expand vigorously its monetary stimulus has put the issue back on the agenda. So, too, has the fact that the US and its negotiating partners appear to be creeping closer to sealing the deal on the TPP, which sits high on President Barack Obama’s agenda as he heads to Asia this weekend for a summit.

Source: 
Financial Times