Lawmakers Push for Penalties Over Currency Policy
Ian Talley in Beijing and
William Mauldin in Washington
Nov. 17, 2013 7:55 p.m. ET
Treasury Secretary Jacob Lew just completed a grueling 23,000-mile, five-country tour to rally support for a Trans-Pacific Partnership trade pact. But it looks like his toughest sell might be back home in Washington.
During Mr. Lew’s trip, which took him to Japan, Singapore, Malaysia, Vietnam and China, the trade issue boiled over on Capitol Hill, where lawmakers backed by the U.S. automobile industry called on the Obama administration to include penalties for countries that are shown to have used their currencies to gain a competitive edge. Detroit auto makers say their Japanese competitors unfairly benefit from Tokyo’s policy of keeping the yen weak, a charge the Japanese deny.
The new outcry means chances are fading for the trade negotiations to reach a speedy conclusion, according to experts and former trade officials. U.S. officials still hope to finish the pact, whose goal is to expand trade among 12 countries around the Pacific Ocean, by year’s end. “In each capital, it was clear that this is in their interest,” Mr. Lew said at the end of the trip.
Read more: http://online.wsj.com/news/articles/SB10001424052702303755504579204081826102364
