Article Date: 09/30/2015
Within the next couple days, negotiators hope to “wrap up” TPP agreements. However, “TPP: Currency Manipulation Will Allow Our Trade Partners to Skirt the Deal” and several other articles suggest we have not learned from past mistakes.
Currency manipulation has become a significant problem in the global economy. In fact, it has become “our trade competitors’ favorite maneuver for skirting massive trade deals as soon as they sign them.” Devaluing their currency ultimately reduces the cost of their goods to us and the rest of the world, but increases the cost of our goods to them. Unfortunately, the TPP does not include currency manipulation. Is the TPP really setting fair rules for trade?
What is the United States losing from currency manipulation? “Good paying American jobs… also greatly weigh[ing] down our domestic economy by 2.5 to 5.5 percent every year for the last decade.” A few countries that frequently use currency manipulation include: Vietnam, China, Malaysia, and Singapore. Therefore, is the playing field really level?
To read this article from the Huffington Post, please click the following link: http://www.huffingtonpost.com/rogerjohnson/tpp-currency-manipulation_b_8219700.html