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The Framers regarded the Contract Clause as simply an adjunct to the currency provisions of Art.
The push for strong currency provisions — in legislation to grant the president "fast track" trade negotiating authority, in a major trade deal with a dozen Pacific Rim countries, or in both — has presented the White House with what it fears is something of a Catch-22.
"Do you plan to include strong currency provisions?" Brown continued.
Currency provisions must be placed in the TPP that could be enforced through trade sanctions.
"Seeking enforceable currency provisions would likely derail the conclusion of the TPP, given the deep reservations held by our trading partners," Treasury Secretary Jack Lew told senators.
Later in the hearing, Sen. Sherrod Brown (D-Ohio) piled on, asking, "Are you prepared to risk defeat... by not including meaningful currency provisions in this agreement?" "I'm sorry, I can't answer that yes or no," Froman responded.
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The White House has opposed the currency provision, making it even more unlikely that the text will make it into the final piece of legislation.
Graham and Levin said they backed the proposal — and were willing to let the TPP die in Congress if some currency provision is not included.
Without a currency provision, the TPP is likely to lead to growing trade deficits and job losses.
Obama has warned that a poorly written currency provision could hamper the Federal Reserve's ability to conduct monetary policy, but many economists believe it would be simple to craft effective language that would give the Fed plenty of leeway.
"Now is the time to think deeply and comprehensively about this country's trade policy," said Sen. Chuck Schumer (D-N.Y ., who has taken the leaD-N.Y .ghting for the currency provision.
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