Will China's Currency Devaluation Complicate The Trans-Pacific Partnership?

As trade ministers from 12 Pacific Rim countries continue to negotiate the Trans-Pacific Partnership (TPP) deal, participants in the auto industry on both sides of the Pacific are watching talks closely, as the outcome of these talks will potentially affect their businesses on fronts ranging from domestic content thresholds to intellectual property protection to the levels of tariffs faced by the industry. A new wrinkle has emerged in the form of potential currency manipulation controls to be included in the TPP.

Recently, China's currency devaluation has sparked a debate in TPP talks over the inclusion of these controls in global trade agreements. China is not currently part of the TPP, however, the agreement includes a mechanism for allowing other countries, including China, to join the agreement in the future.