December 8, 2014

MSCI Will Support Trade Legislation With Strong Currency Provisions

President Barack Obama and Sen. Orrin Hatch (R-Utah), who will take over the Senate Finance Committee in the 114th Congress, both reiterated their support last week for passage next year of fast track Trade Promotion Authority. 

According to the Coalition for a Prosperous America, Sen. Hatch said, “I stand ready to work with … my colleagues in the Senate and the House, and the administration to get it done, get it done right, and get it done soon. … But I also want to be clear that I will not wait forever for everyone to be satisfied before moving forward.” (Emphasis added.) 

While MSCI supports free trade agreements and fast track authority in general, U.S. trade agreements must include strong provisions to address currency manipulation. Without these provisions, MSCI will be unable to support fast track or any individual trade agreements. 

According to the Economic Policy Institute, addressing currency manipulation by more than 20 countries, including several Asian countries with which the U.S. is currently negotiating a trade agreement, would create between 2.3 million and 5.8 million jobs over the next three years. Strong efforts to address currency manipulation would also cut the U.S. trade deficit by $200 billion and increase economic growth by nearly $720 billion. The U.S. manufacturing industry is back on top again – now is not the time to ease up on our efforts to highlight and address currency manipulation. The future growth of our industry depends on it. Tell your representatives in the U.S. House and U.S. Senate now!