Detroit 3: Japan’s currency policy “unacceptable”

A trade group representing GM, Ford and Chrysler opposes efforts by Japan’s new goverment to devalue the yen and asked the Obama administration to take attitude.

U.S. automakers have long criticized Japan for using trade and currency policies to restrict access to the Japanese market, which they call one of the most closed in the world. This is why The Detroit Three opposed allowing Japan to enter free trade talks for creating the Trans-Pacific Partnership free trade zone.

“Here we go again. Japan’s Liberal Democratic party is back in power and determined to repeat the ‘beggar thy neighbor’ policies that distort trade by cheapening the value of the yen to promote economic growth in Japan at the expense of its trading partners,” Matt Blunt, president of the American Automotive Policy Council that represents General Motors, Ford and Chrysler on trade policy, was quoted as saying by the Detroit News.

„We urge the Obama Administration to make it clear to Japan that such policies are unacceptable and will be met by reciprocal measures,” Blunt added. However, Japanese automakers have long argued the yen is still overvalued and have threatened to move more production out unless the yen declined in value. A strong yen makes Japanese exports more expensive and foreign imports to Japan less expensive.