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Detroit News: Five Michigan reps urge tough currency trade measures

Detroit News

Five Michigan freshmen members of Congress — including three Republicans — urged the Obama administration to demand provisions to crack down on currency manipulation in a 12-nation free trade deal under negotiation.

Last month, House and Senate committees approved “fast track” legislation that would require Congress to vote up or down on a trade deal without amendments. The Asia Pacific trade deal would account for 40 percent of the world’s economy and one-third of global trade.

In the letter to Treasury Secretary Jack Lew and U.S. Trade Representative Michael Froman, the five said a deal with currency could hurt Michigan workers. The Obama administration has repeatedly said currency issues can be dealt with in other international forums, not trade deals.

“Failing to address currency manipulation could lessen or eliminate any benefits of a free trade agreement and leave American workers and American businesses at a continuing competitive disadvantage,” wrote Representatives Debbie Dingell, D-Dearborn, David Trott, R-Birmingham, John Moolenaar, R-Midland, Brenda Lawrence, D-Southfield, and Mike Bishop, R-Rochester.

The members cited a paper from the Economic Policy Institute, that says Michigan has lost 56,200 jobs due to the trade deficit with Japan, in large part as a result of currency manipulation. These job losses accounted for 1.34 percent of Michigan’s employment, the most of any state in the country.

“The working families in our communities expect us to come together to tackle the big issues that will strengthen job creation,” the letter said. “Each country should be held accountable. As you continue to negotiate the Trans-Pacific Partnership, we encourage you to pursue enforceable currency disciplines to prevent currency manipulation by our trading partners.”

But Rep. Paul Ryan, R-Wis., chairman of the House Ways and Means Committee, said Thursday that including enforceable currency requirements in the Trans-Pacific Partnership could spark a trade war. “There are better ways of addressing those problems,” Ryan said saying it could put at risk the dollar as the world’s benchmark currency. Ryan said the U.S. can “do smarter, other things” to address currency manipulation.\

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