WASHINGTON -- A trade group representing Detroit's automakers is resisting Japan's effort to join the Trans-Pacific Partnership, unless there are rules governing currency manipulation, a tactic Japan is accused of using to restrict auto imports in its domestic markets.
The American Automotive Policy Council -- a Washington association representing Chrysler, Ford and General Motors -- along with the Alliance for American Manufacturing, the American Iron and Steel Institute and other groups sent a letter Tuesday to Treasury Secretary Tim Geithner and Trade Representative Ron Kirk asking for the "inclusion of strong currency disciplines" in future free-trade agreements.
Japan was not mentioned by name but, in an interview, AAPC President and former Missouri Gov. Matt Blunt said the council is convinced that currency manipulation has allowed Japan's automakers to insulate themselves from competition. The Japan Automobile Manufacturers Association and others contend that the yen has been at or near record highs against the dollar.
"We believe currency manipulation does occur and it occurs to the detriment of the United States," said Blunt.