U.S. auto companies are stepping up a congressional lobbying effort in response to Japan's entry into the Trans-Pacific Partnership (TPP) by arguing that it is more important than ever for the agreement to contain “meaningful” provisions on currency manipulation.
“I think it needs to do more than just make reference to currency manipulation given the fact that it can be such an impediment to free trade,” said Matt Blunt, president of the American Automotive Policy Council (AAPC). “You need something that allows for redress if a country is manipulating its currency.”
Blunt, in a May 9 interview with Inside U.S. Trade, said the TPP agreement could contain a definition of currency manipulation and an accompanying provision that if members are manipulating their currencies, they would lose the benefits of the agreement.
“We've answered lots of questions about language, we've had a lot of discussions with people about what type of language might work,” Blunt said, adding that for some members of Congress, this is going to be a “make or break issue.”