Fierce debate continues in Washington over the proposed trade agreement known as the Trans-Pacific Partnership (TPP), between the United States and 11 Asia-Pacific nations, including Japan. Hundreds of members of Congress (from both parties!) are joining economists left and right to include an enforceable provision on currency manipulation in the TPP, but there are still some who argue that this rule isn't needed.
That's why we put together this handy list of the top 10 facts you need to know about currency and the TPP. (Hint: It's about middle-class jobs).
- Japan, a potential TPP partner, is gaming the United States, and it's getting worse. The country's currency, the yen, is down by over 50 percent over the past three years. Meanwhile, Japan's export growth is way up. Example: Japan ships 1.5 million cars to the U.S. every year -- while we ship 20,000 to Japan.
a. Congress voted to put pressure on China (see 2005, 2010, 2011);
b. The Obama administration made a credible threat (see 2010);
c. When China's currency cheating was part of the national political conversation (see 2012).
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But projections show that ending currency manipulation would create
over three years. And that effort starts by making sure there is a strong, enforceable rule against currency cheating in the TPP.