National Farmers Union President Roger Johnson wants the Obama Administration to include language against currency manipulation in the Trans-Pacific Partnership (TPP) agreement.
Despite countries having manipulated currency to gain a trade edge on the U.S., TPP negotiations have not adequately addressed the issue, Johnson said.
“We think that’s a huge mistake,” Johnson said.
The U.S. has an agricultural trade surplus, said Johnson, but when all trade is taken as a whole, there’s a deficit, and Johnson says that results in a 3 percent drag on the nation’s Gross Domestic Product.
“Historically, about half of the trade deficit that the U.S. suffers comes as a result of currency manipulation,” he said.
Johnson said that by manipulating their currencies, Vietnam and China are erecting barriers to free trade. Vietnam is a participant in TPP negotiations.
The National Farmers Union opposes the TPP because the agreement does not prohibit currency manipulation, however if that changes, Johnson said there’s room for reconsideration.
“I think we would seriously look at this,” Johnson said thoughtfully when asked whether a prohibition of currency manipulation added to TPP language may result in the NFU changing its stance on the TPP. “We would certainly consider that as we considered what our ultimate position is.”
To hear it from Johnson, however, the chances of the organization soon deliberating over policy changes on TPP are slim. He doubts whether such language would be added to the 12-nation trade agreement.
“I’d be really surprised if the U.S. trade negotiators decided to argue for currency manipulation provisions in TPP,” he said. “And I would be even more surprised if they then managed to get the TPP partners to agree to meaningful currency manipulation prohibitions.”
Source: www.brownfieldagnews.com