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    Read AFL-CIO letter

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    © All Rights Reserved
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    2K views7 pages

    Read AFL-CIO Letter

    Uploaded by

    kballuck1
    Read AFL-CIO letter

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 7
    AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS. eo eaten aH Mtg 96 9 PSE ew acum comet not’ on eG? LEGISLATIVEALERT teas August 17, 2015, Dear Senatov Representative: Given China’s latest currency moves it should now be clearer than ever that any completed Trans Pacific Partnership (TPP) must includ rules against currency manipultion—enforceabe, when necessary, through recourse to rade canetions. Quite sinply, currency manipulation costs jobs. The Economic Policy Institue (EPI) estimates that ‘ending currency manipulation could create 2s many as $8 million jobs inthe US." The U.S. failure o ‘address currency manipulation and undervalution, and not only by China has been a major eause oF the U.S. manufacturing decline and rade deficit which stands at more than $508 billion for 2014), Taree separate times lst week, China devalued its currency, which is now down 4.4% against the ollar® According to EPI estimates, a prolonged 4% devaluation ofthe renminbi could educe US. GDP by 14% and cost 190,000 jobs over the next two to thee years, while a sustained, cumulative devaluation of| 10% could cost 32% of GDP and 430,000 jobs.” Furthermore, these are potentially conservative estimates 1 China's actioes spur competitive devaluation amog rival East Asian export economies, the impact could be even worse. AS EPI noes, if Chinas actions prompt a wave of devaluation tnroughout Asia, the result will be bigger US. ade deficits and more jobs losses Existing currency policy has filed. This most recent devaluation undoes four years of progress toward rebalane:ng China's unfair eureney advantage and demonstrates that relying on China’s good will regarding its exchange rate isa dangerous and unsustainable fll. Last week's developments highlight the importance of insisting on enforceable eureney disciplines in the TPP. Japan, Singapore, and Malaysia are prt ofthe proposed TPP club and all have a history of egregious curerey manipalation.* China's devaluation could eertaily prompt them t Follow suit, " Robert E Seu, Ending Gurrency Manipulation Would Creae Jos in Every State, Netlng Up io 8 Million Job” EPL eonomie Snapshot Ma. 5,204, pune epiorgipubliaonicurency manipulation rte + Nell Gough, “China Seth to Calm Markets It Devas Currency fr Sd Concave Duy.” The New Yor Times Aug. 23,2015, tpn yes com/201SN41 fbusinssntemtionalichins devalues is cunengysenmin for thc ‘somsntivedasAimt 2 Robert E Scot, "Congress Must Ac 1 Save the 190,00 to 64,200 US, Jobs at Risk Due to Chinese Currency Devaluation” EPI Working Econom Blog, Avg, 17, 2015, hipdhsww.

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