Why a House Democrat from Michigan opposes Obama on trade deal

June 16, 2015

Ali Velshi makes financial argument with Rep. Debbie Dingell, who accuses Japan of currency manipulation

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Why a House Democrat from Michigan opposes Obama on trade deal

The Trans-Pacific Partnership would remove trade barriers and tariffs around the Pacific Rim, potentially taking up to a third of the world's trade and 40% of all global economic activity. Many of the exact details of the deal remain unknown because it's being negotiated in secret. Critics don't like that one bit, but some parts have been leaked. One of the Democratic lawmakers against giving the President fast-track authority is Congresswoman Debbie Dingell, who represents Michigan's 12th Congressional District. Currently, 95% of the world’s consumers live outside of the United States, presenting almost limitless opportunity for American exporters to reach new and diverse markets. She says this trade agreement does not do enough to stop, what she calls, “currency manipulation by Japan.” Treasury has labeled three countries as currency manipulators in the past: Japan in 1988, Taiwan in 1988 and again in 1992, and China from 1992 until 1994. The Omnibus Trade and Competitiveness Act of 1988 requires the Secretary of the Treasury to provide semiannual reports on the international economic and exchange rate policies of the major trading partners of the United States. You seem to use the phrase "currency manipulation" somewhat inaccurately, even irresponsibly: the United States Treasury has not labeled any country a currency manipulator since 1994 (China). What Japan is doing is exactly what the United States did to boost its economy: quantitative easing. That's why the Yen has declined against the dollar. Treasury has labeled three countries as currency manipulators in the past: Japan in 1988, Taiwan in 1988 and again in 1992, and China from 1992 until 1994. The Omnibus Trade and Competitiveness Act of 1988 requires the Secretary of the Treasury to provide semiannual reports on the international economic and exchange rate policies of the major trading partners of the United States. So clearly there's already a system in place to deal with nations labeled currency manipulators. So isn't your aim simply to protect automakers from competition from Japanese imports?


 

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