U.S. Eyes Currency Clause in Trade Pact with Japan

October 15, 2018

Nusa Dua, Indonesia- U.S. Treasury Secretary Steven Mnuchin expressed Saturday his intention to urge Japan to include a provision to avoid competitive currency devaluation in a proposed bilateral trade agreement.

A currency clause was included in a new North American Free Trade Agreement worked out by the United States, Canada and Mexico last month.

At a press conference in Bali, Indonesia, Mnuchin noted that one of objectives of the U.S. administration of President Donald Trump is including such a clause "in future trade agreements."

If Washington actually demands rules to block currency devaluation to boost exports, it would create another source of dispute in the upcoming Japan-U.S. trade talks, which Tokyo claims are limited to goods trade, pundits said.