More on the absence of currency provisions in the TPP…

May 11th, 2015 at 9:13 am

Over at PostEverything, jointly penned with Dean Baker.

My skin is thickened by years of DC economic debates, but the President going to Nike to explain to those of us raising questions about the TPP–particularly around currency–how we simply don’t get it…that got under the old skin a bit.

I’ve followed this issue–trade, globalization, trade deals–for decades. And I’ve done so without a big thumb on the scale either way, always acknowledging the benefits of more open markets, both to our consumers and exporters and to others, particularly developing countries. I also get that politics ain’t beanbag, and people will say what they feel they need to in order to sell legislation like this. But that doesn’t justify telling your opponents they’re clueless, especially when they’re on your side in terms of the ultimate goal of reconnecting growth with more broadly shared prosperity.

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2 comments in reply to "More on the absence of currency provisions in the TPP…"

  1. Smith says:

    As recently corrected myself in a previous comment, the very large trade deficits with Mexico and Canada or mostly about oil. Or are they? Where do our oil dollars go if there are such surpluses of them in these relatively small economies compared to the US. China of course. The question then becomes how much of the U.S. oil induced trade deficit stems from an artificially low Chinese currency?
    “In recent years, Mexico has accumulated an even bigger trade imbalance with China than the United States, importing nine times as much as it sends across the Pacific. The U.S. deficit is closer to 4 to 1.”
    Caution as figures here are Canadian dollars and there is difference in balance of payments vs. balance of trade, the former considering country of origin knocks the net effect by a third, but here it’s also just the gross amount of trade that’s important.

  2. purple says:

    Especially when the President has spent the last 7 years bashing his new allies on economics, the Republican Right. Hey, Ted Cruz is a big backer of this !