Guest Contributor William Krist: Exchange Rate Manipulation

gold coins from skyNegotiators for a Trans-Pacific Partnership Free Trade Agreement need to address currency manipulation when they meet March 4th in Singapore.  Deliberate manipulation of foreign exchange rates by a number of countries is one of the most egregious of all unfair trade practices today.  By maintaining an artificially low exchange rate, a country in effect imposes an extra charge on imports (equivalent to a tariff) and also gains an unfair trade advantage in the U.S. and third country markets.  While this practice has long been recognized as an unfair trade practice, international trade rules have no effective provisions to address this issue.  The U.S. wants the Trans-Pacific Partnership agreement to be a template for future trade agreements.  To achieve this goal, currency manipulation must be addressed in the agreement.  (To read the entire paper, click here)

William K. Krist is a Senior Policy Scholar at the Woodrow Wilson Center.  He is a former Senior Vice President of the American Electronics Association.  He has written extensively on trade, development, and the environment.

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3 Responses to Guest Contributor William Krist: Exchange Rate Manipulation

  1. Joanne Clark says:

    Thanks for inclujding me, Bill. Hope you are well…

  2. Charles Blum says:

    Bill, your comment is spot on. The world is playing with the fire of competitive devaluations just as it did in the 1930s. The previous round ended tragically. Why would anyone think this time will be different?

  3. Michael B. Smith says:

    Bill, I never understood a darn thing about exchange rates except the yen and the Swiss franc were always budget busters for a poor trade negotiator like me. That’s why I got my feet wet just protecting the American needle and thread trade which ignored any concerns about exchange and concentrated instead on good old pure protectionism. Hence, to recall the sobriquet given to me by Brother Blum, I was known of the Scourge of the Far East or the Scrooge of USTR and not always behind my back either,

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