Ford Motor Co.F -0.41% had a breakthrough in its lobbying effort to decry the Japanese government’s practice of weakening its currency.
Sixty U.S. senators signed onto a letter to the Secretary of Treasury and the U.S. Trade Representative to ensure that language in the Trans-Pacific Partnership and other future free trade agreements addresses currency manipulation.
Ford’s Chief Executive Officer, Alan Mulally, has made numerous comments about the unfairness of currency manipulation in the past year after Japan began purposely devaluing its currency under Prime Minister Shinzo Abe.
The yen weakened from around 78 to the dollar year ago to about 100 recently. The difference helped Toyota Motor Corp. rake in record profits of $5.63 billion in its first fiscal quarter that ended June 30. Currency gains accounted for about 40% of its operating profit in the quarter.
The bipartisan group of Senators that wrote the letter was led by Michigan Democrat Debbie Stabenow and South Carolina Republican Lindsey Graham. The U.S. is involved in negotiating a free-trade agreement among 12 countries, including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The negotiations have been ongoing. Read More...