TPP and Exchange Rates

The Trans-Pacific Partnership, or TPP, is an ambitious trade deal involving the United States and 11 other countries. Some argue that the TPP is unfair to US firms because it lacks an enforceable commitment by members not to manipulate the value of their currencies. But this argument ignores the progress made by the TPP toward ensuring that countries with a record of currency manipulation do not revive the practice in the future. In fact, the TPP is the first ever trade agreement linked explicitly to macroeconomic policies and exchange rates.