For Immediate Release:
July 1, 2014
Contact: Colin Dunn
Coalition of Business Leaders Urge Obama Administration to Address Currency Manipulation
U.S. Manufacturing Associations Look to Protect American Jobs Ahead of TPP Talks in Ottawa
Washington, D.C. – Thirteen leading manufacturing associations and coalitions, including the American Automotive Policy Council (AAPC), today called upon U.S. Treasury Secretary Jacob J. Lew and U.S. Trade Representative Michael Froman to include strong and enforceable currency manipulation disciplines in all future trade agreements, especially the Trans-Pacific Partnership (TPP), as TPP talks begin in Ottawa.
The letter was signed by the following manufacturing associations: American Automotive Policy Council, American Fiber Manufacturers Association, American Iron and Steel Institute, Coalition for a Prosperous America, Copper & Brass Fabricators Council, Metals Service Center Institute, National Council for Textiles Organization, National Tooling and Machining Association, Precision Machined Products Association, Precision Metalforming Association, Steel Manufacturers Association, Tooling, Manufacturing and Technologies Association, and the U.S. Industrial Fabrics Institute.
“The economic consequences of currency manipulation are enormous and widespread,” the groups wrote. “Several recent economic studies have estimated that undervalued currencies resulting from intervention have caused an increase in the U.S. trade deficit of up to $500 billion per year, which suppresses U.S. employment levels by five million jobs.”
In the joint letter, AAPC and its partners emphasized how unfair currency policies hurt American workers, exports and overall economic growth. The groups explained that TPP needs to create a level playing field for trade partners in order to protect American jobs from being shipped overseas due to currency manipulation.
“This letter has made it clear that strong and enforceable currency manipulation disciplines are a top priority for American manufacturers and job creators,” said Governor Matt Blunt, President of AAPC. “The American auto industry is the leading U.S. export industry. To be a strong, equitable trade partner, you need to play by the rules. The American Automotive Policy Council is proud to stand with our partner groups in calling for the TPP to address such an economically important issue.”
All thirteen associations support a specific three-part test, outlined in the letter, to determine whether a country is manipulating its currency. These test criteria were drawn heavily on the indicators developed by the International Monetary Fund, and purposefully do not impede on a countries’ flexibility to utilize sovereign monetary policies. Failure to pass the three-part test should result in loss of the agreement’s benefits.
Find the letter here.
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.