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.
This video highlights key features of the TPP’s joint declaration on currency and the new Trade Facilitation and Enforcement Act, which together should strengthen the US Treasury’s tools to deal with the problem.