Ford TPP Does Not Hold Currency Manipulators Accountable
In the “joint declaration” on currency, the 12 TPP member countries agreed to “avoid unfair currency practices and refrain from competitive devaluation,” according to a U.S. Treasury fact sheet.
Within hours of the text release, Japan’s finance minister made clear that the currency forum would have no impact on his country’s monetary and currency policies.
Along with some members of Congress, Ford criticized the currency pact because it lacks any enforcement tools to hold currency manipulators accountable. “The currency forum does nothing to change the status quo. It falls outside of TPP, and it fails to include dispute settlement mechanisms to ensure global rules prohibiting currency manipulation are enforced,” said Ziad Ojakli, group vice president, Government and Community Relations.
Ford began working to address foreign currency manipulation more than three years ago because the issue is so important to manufacturing and the company’s competitive position.
Currency manipulation occurs when countries artificially lower the value of their currencies, which makes their exports cheaper but hurts competitors in other countries.
The TPP is a major trade deal that would link the economies of the U.S. and 11 Pacific Rim nations. A vote on TPP is expected sometime next year.
“To ensure the future competitiveness of American manufacturing, we recommend Congress not approve TPP in its current form, and we ask the Administration to renegotiate TPP and incorporate strong and enforceable currency rules,” said Ojakli. “This step is critical to achieving free trade in the 21stcentury.”
Government Relations will be reaching out to employees, retirees and other stakeholders in key states and congressional districts to contact lawmakers regarding the need to support enforceable currency rules in the TPP.