OREANDA-NEWS. February 01, 2016. The 12 nations of the Trans-Pacific Partnership (TPP) are expected to officially sign the trade deal on Feb. 4. The next step is for each country’s legislature to approve it. In Washington, lawmakers are saying not so fast. 
 
This week, U.S. lawmakers cited Ford’s decision to close operations in Japan as further evidence of the impact of unfair currency manipulation. The TPP does not include strong and enforceable rules prohibiting currency manipulation. 
 
U.S. Sen. Rob Portman (R-OH) – a former U.S. trade representative – urged the Obama Administration to address currency manipulation before a TPP vote. “Ford’s decision is an example of why real, enforceable currency measures, like those I’ve championed, are needed,” he said.  
 
“The ink isn’t even dry and we are already seeing proof that this massive agreement (TPP) will sell out American workers and roll back the remarkable recovery of our auto industry,” noted U.S. Sen. Sherrod Brown (D-OH).
 
These points in the Senate were reinforced by U.S. Rep. Debbie Dingell (D-MI), who represents Dearborn. “Until our trade agreements meaningfully address currency manipulation, 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,” she said.
 
Ford is committed to aggressively restructuring parts of the business which have no reasonable path to achieve sales growth or sustained profitability, particularly in areas where market dynamics prevent the company from competing effectively. Japan is the most closed, developed auto economy in the world, with all imported brands accounting for less than 6% of Japan’s annual new car market. The overall industry in Japan is projected to decline in coming years, leaving even less opportunity for success. TPP will not change this.
 
“The TPP does nothing to open the Japanese market to increased auto imports from any global automaker,” said Steve Biegun, vice president, International Governmental Affairs, at a Jan. 7 congressional forum. “The more urgent challenge is currency manipulation’s effect on other markets. The status quo hurts global automakers competing in the U.S. and all other markets around the globe.”
 
Ford began working to address foreign currency manipulation more than four years ago because the issue is critical to manufacturing and the company’s competitive position. 
Currency manipulation occurs when countries artificially lower the value of their currencies, which makes their exports cheaper and unfairly hurts competitors in other countries.
 
The TPP is a major trade deal that would link the economies of the U.S. and 11 Pacific Rim nations, including Japan.
 
“We believe it is critically important for the U.S. to get TPP right to ensure a level playing field for American manufacturers and autoworkers to compete,” said Biegun.