Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
The amendment to FastTrack that could save America
Tomorrow, the Senate will start voting on whether or not to give President Obama Fast-Track power (Trade Promotion Authority). As my father, son and I noted in a commentary last week (Fast Tracking America's Economic Destruction), the Trans Pacific Partnership will give our treaty partners permission to manipulate exchange rates.
Even worse, the court system in TPA would make it impossible for the United States to ever combat currency manipulation because, if the United States were to promulgate tariffs against a currency-manipulating treaty country, businesses exporting to the United States from that country could sue the U.S. government for billions of dollars of damages in TPP's private court system. We wrote:
Here is the text of the simple amendment that would give future presidents the ability to balance trade. It should be added to all trade treaties that are negotiated by the U.S. government:
This week, the Senate is planning to throw up a smokescreen to hide the fact that they are voting for currency manipulation. After enabling currency manipulation in Fast-Track, they will vote for a separate bill that is against currency manipulation.
Keep in mind that that bill would not apply to TPP countries, because, if the United States were to take action against currency manipulation, the businesses upon whom the tariffs are imposed could sue the United States in TPP's courts.
Journal of Economic Literature:
Atlantic Economic Journal: