A broad coalition of manufacturers are pressing U.S. trade officials to include rules in free trade agreements preventing deliberate currency manipulation.
The Alliance for American Manufacturing (AAM) sent a letter on Tuesday to Treasury Secretary Timothy Geithner and U.S. Trade Representative Ron Kirk pressing them to address currency undervaluation as part of the negotiation of the Trans-Pacific Partnership (TPP)?? and any future trade deals.
"As the United States continues to pursue new free trade agreements, it will be critical to address with equal vigor the trade-distorting effects of both tariff and non-tariff measures," the groups wrote.
"Currency manipulation to gain an unfair competitive advantage is among the most trade-distorting practices utilized today as some countries seek to support their exports and curb imports through the deliberate and willful weakening of their currencies," they wrote.
They wrote that currency manipulation can "negate the trade liberalizing effects of tariff reductions."