WASHINGTON — The Automotive Trade Policy Council, whose members include General Motors, Ford and DaimlerChrysler, applauded legislation int rod uced this week by Rep. Joe Knollenberg (R-MI) that directs the U.S. to work with its major trading partners and the International Monetary Fund (IMF) to insist that the Japanese government return the severely undervalued yen to its true market value. Japan has spent more than $400 billion since 2001 to weaken the yen in an effort to facilitate economic growth through greater exports.
“Rep. Knollenberg is demanding an end to the Japanese government’s policy of subsidizing its own economic growth at the expense of its trading partners, particularly the United States,” said ATPC President Stephen Collins. “The major misalignment of Japan’s yen offers a prime example of using currency policy to gain a trade advantage. This legislation puts the spotlight squarely on Japan’s unfair behavior. We hope Congress will take a hard look at the damage the yen has caused to U.S. manufacturing and force Japan to play by the rules.”
Rep. Knollenberg’s legislation directs the U.S. Treasury Department and the Council of Economic Advisors to work with Japan to facilitate the proper alignment of the yen to the dollar. The legislation also directs the Treasury Department to work with European trading partners and the International Monetary Fund to address the misaligned yen and the resulting trade imbalances.
Additional information on the misaligned yen can be found at: www.autoyensubsidy.org.