Washington, DC- Today, U.S. Senator Bob Casey (D-PA), with nearly 60 bipartisan members of the U.S. Senate, urged the Administration to address currency manipulation as part of its ongoing Trans-Pacific Partnership talks. Casey, who has repeatedly called on the Administration to confront currency manipulation from countries like China, is calling for robust protections in any agreement that ensure countries such as China and Japan are held accountable and play by the rules.
“Currency manipulation, whether it be by China, Japan or another country, has a serious impact on Pennsylvania jobs,” Senator Casey said. “As the Administration engages in these negotiations, it’s critical that countries who cheat on their currency are held accountable and are required to obey international law.”
The text of the letter can be found below:
Secretary Jack Lew
Department of the Treasury
Ambassador Michael Froman
Office of the United States Trade Representative
Dear Secretary Lew and Ambassador Froman:
We agree with the Administration’s stated goal that the Trans-Pacific Partnership (TPP) has “high standards worthy of a 21st century trade agreement.” To achieve this, however, we think it is necessary to address one of the 21st century’s most serious trade problems: foreign currency manipulation.
Currency is the medium through which trade occurs and exchange rates determine its comparative value. It is as important to trade outcomes as is the quality of the goods or services traded. Currency manipulation can negate or greatly reduce the benefits of a free trade agreement and may have a devastating impact on American companies and workers.
A study by the Peterson Institute for International Economics found that foreign currency manipulation has already cost between one and five million American jobs. A free trade agreement purporting to increase trade, but failing to address foreign currency manipulation, could lead to a permanent unfair trade relationship that further harms the United States economy.
As the United States negotiates TPP and all future free trade agreements, we ask that you include strong and enforceable foreign currency manipulation disciplines to ensure these agreements meet the “high standards” our country, America’s companies, and America’s workers deserve.