news

Two congressional Democrats on Monday blamed Ford Motor Co.'s exit from Japan on the lack of currency manipulation provisions in a sweeping Asia-Pacific trade deal.

Sen. Sherrod Brown (D-Ohio) and Rep. Debbie Dingell (D-Mich.), who are both opposed to the 12-nation Trans-Pacific Partnership (TPP) that includes Japan, said the agreement doesn't crack down on exchange rate policies or remove barriers to Tokyo's auto industry that would help U.S. manufacturers.

“The TPP’s lack of any meaningful currency protections means that it will be more of the same.” We need our government to fight for companies in the global marketplace in the same manner as some other countries do. This business decision by Ford is further evidence of the impact of unfair currency manipulation.”

"The ink isn’t even dry and we are already seeing proof that this massive agreement will sell out American workers and roll back the remarkable recovery of our auto industry," Brown said.

Dingel said that "this business decision by Ford is further evidence of the impact of unfair currency manipulation.”

"Until our trade agreements meaningfully address currency manipulation, the mother of all trade barriers, American companies will continue to be threatened and disadvantaged by foreign governments who attempt to tilt the global playing field in favor of their industries and against the United States," Dingell said. 

Ford, which opposes the TPP over the currency issue, said Monday that it will close operations in Japan and Indonesia this year, underscoring the need for improving exchange rate policies long argued to be hampering U.S. automakers in the Asia-Pacific region.

Karen Hampton, Ford's vice president of communications in the Asia Pacific, said in a statement that “after pursuing every possible option, it has become clear that there is no path to sustained profitability for us in Japan."

Ford, which has struggled to gain market share in either country, sold fewer than 5,000 cars in Japan last year. No foreign manufacturers are able to build cars in Japan.

Steve Biegun, Ford's vice president of international government affairs, has long argued for currency policies that give U.S. automakers a better shot of selling more cars in the Japanese market.

"By our assessment, this TPP would lock in place a $50 billion annual auto trade deficit with Japan," he said at a hearing held by House Ways and Means Committee Democrats on Jan. 7.

"We do not expect that any global automaker will meaningfully increase exports to Japan as a result of this TPP agreement," he said.

He argued that a weak yen has helped Japan's government prop up its own auto manufacturing industry at the expense of any foreign competition.

Click here to read the full story.