TPP Should Include Strong and Enforceable Measures to Stop Currency Manipulation: Report
Study finds Ending Currency Manipulation Could Create 5.8 Million Jobs
Washington— A new report from the Economic Policy Institute (EPI) called on lawmakers to include enforceable rules against currency manipulation in the Trans-Pacific Partnership (TPP) as Congress considers a Trade Promotion Authority (TPA) bill this week. The current TPA bill does not contain enforceable currency provisions.
Several members of the proposed TPP — including Japan, Malaysia, and Singapore — are well-known currency manipulators, and others — including South Korea, Taiwan, and China — have expressed interest in joining the agreement.
“Congress should demand that the Trans-Pacific Partnership include strong and enforceable tools to end currency manipulation in the core of that agreement,” said Robert Scott, Director of Trade and Manufacturing Policy Research at EPI.
The EPI study found that the United States would see significant job gains within three years if global currency manipulation were halted, with a major impact on manufacturing job growth.
“This report shows that stopping currency manipulation is essential for creating new jobs in the United States,” said Scott Paul, president of the Alliance for American Manufacturing (AAM). "Our nation won’t enjoy the benefits of expanded trade unless it’s done on a level playing field. We are literally giving away good jobs unless currency manipulation is stopped as a part of new trade agreements.”
Currency manipulation is the primary cause of the nation’s $736 billion annual goods trade deficit, a massive imbalance that has harmed American manufacturers.