Congress Moves to Okay Fast-Track Trade Talks

U.S. Congressional trade leaders have introduced legislation that would allow President Barack Obama to accelerate negotiations for separate free-trade pacts with the European Union and 11 Asia-Pacific countries.

The two agreements would encompass 40 countries, creating a global free-trade zone representing economic activity worth some $44 trillion per year.

The trade promotion authority proposal, led by Senate Finance Committee Chairman Max Baucus (D-Mont.), would require any deals to include provisions that would protect against electronic theft of intellectual property and prevent governments from manipulating their currencies.

Detroit's Big Three carmakers through their American Automotive Policy Council lobbying group say they will oppose any Pacific-Rim agreement that fails to include enforceable rules to prevent currency manipulation.

The council claims Japan has deliberately devalued the yen by some 38% over the past two years to bolster the competitiveness and profitability of its exports. Japan denies the charge, and the White House has so far declined to accuse the country of currency manipulation.

APC proposes that trade agreements require participating countries to be forthcoming about their foreign exchange holdings and programs to buy foreign assets. Member nations would be able to reinstate tariffs for a year or more against countries that violate non-manipulation rules.