The Obama administration and officials from 11 Pacific Rim nations have recently announced a new free trade deal but critics are keen to point out the agreement does little to eschew the currency manipulation practiced by some countries.
Ford, among the critics, has pointed out that for American automakers it will be very hard to cross the barrier to their auto sales in some Asian countries – the best example being Japan and its push by Prime Minister Abe to devalue its currency. The Office of the U.S. Trade Representative said on Monday the negotiations concerning the Trans-Pacific Partnership (TPP) have finished, meaning the trade deal is close to a final agreement that would involve around 40% of the global economy. Critics from Michigan – home of the Detroit Three carmakers – and the industrial Midwest pointed out the current form has no impact on currency manipulation in some Asian countries – automobiles and other products from those nations are less expensive artificially while American goods are pricier.
“Ford supports free-trade agreements that result in real market openings and a level playing field for all to compete. The TPP fails to meet that test,” commented Ziad Ojakli, Ford’s group vice president for government and community relations, adding the carmaker has recommended Congress to veto the TPP in the current form. It also appears that US lawmakers have decided to have another look at the current form of the deal after numerous reports pointed out it would still incur heavy restrictions for the American auto industry and several other sectors of the US economy.