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Hatch Seeks Currency Provisions In TPP, Future Trade Deals To Guard Against Manipulation
World Trade Online | February 6, 2012
Senate Finance Committee Ranking Member Orrin Hatch (R-UT) has asked the Obama administration for its views on including a provision guarding against misaligned currencies in the Trans-Pacific Partnership (TPP) and future trade agreements.
“Addressing currency manipulation in the TPP becomes particularly important as the Administration considers the possibility of new TPP participants, such as Japan, who have demonstrated a pattern of currency interventions,” Hatch said in a Jan. 18 letter to Treasury Secretary Timothy Geithner and U.S. Trade Representative Ron Kirk.
Hatch noted that “many stakeholders” consider currency manipulation a key policy issue impacting trade and U.S. competitiveness in the global economy. He said these stakeholders believe the issue must be addressed in trade negotiations, particularly the TPP, which is designed to address “21st century” international trade issues.
The letter mentioned the TPP currency provision as the third of three key issues on which Hatch is demanding a response from the administration.
The first is obtaining a clear administration position on S. 1619, a currency bill the Senate passed in October 2011. Hatch pointed out that he offered an amendment to that bill that would have directed the administration to work within the World Trade Organization and the International Monetary Fund to develop “effective rules and remedies” to mitigate the adverse trade and economic effects of fundamentally misaligned currencies.
The second is to get a summary of the administration’s positions on the relationship between trade and currency policies that will be presented at a World Trade Organization seminar on trade and currency policies