Washington, DC – The Automotive Trade Policy Council, whose members include General Motors, Ford and DaimlerChrysler, applauded legislation introduced today by Rep. Joe Knollenberg (R-MI) that directs the US to work with its major trading partners and the IMF to insist that the Japanese government return the severely undervalued yen to its true market value. Japan has spent over $400 billion since 2001 to weaken the yen in an effort to facilitate economic growth through greater exports, primarily in automobiles.
“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 J. 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.
The Automotive Trade Policy Council, Inc. (ATPC) is a Washington, D.C. — based non profit trade association that represents the common international economic, trade and investment interests of its member companies: DaimlerChrysler Corporation, Ford Motor Company and General Motors Corporation.
