Japanese official: Adding currency rules would kill Pacific trade pact

(Adds full comment from Japanese official)

TOKYO, March 4 (Reuters) - Any effort to add rules against manipulation of currencies in a 12-nation Pacific trade pact would mean the end of negotiations, a senior Japanese negotiator said on Tuesday.

Some U.S. lawmakers are pushing for a currency chapter in the Trans-Pacific Partnership, which officials say is nearly completed, partly due to concerns about a weak Japanese yen.

But Japan's deputy chief trade negotiator, Hiroshi Oe, told reporters there were no discussions about currency manipulation, and if the issue was brought to the table it would derail any agreement.

"In the actual negotiations (there is) no discussion at all," Oe told reporters at a briefing, when asked if there were talks on inserting a provision against currency manipulation in the agreement.

"If that is really brought to the table, I think that's the end of the negotiations," he said.

Japan yen's has slumped since late 2012, when Prime Minister Shinzo Abe returned to power and started pursuing aggressive stimulus policies, worrying U.S. automakers like Ford Motor Co.

There is scant evidence recently that either Japan or China, America's top trading partners in Asia, are engaged in currency manipulation following decades of U.S. pressure to stop intervening in the market. Japan's yen is weakening partly due to the same policies pursued by the U.S. Federal Reserve.

The U.S. administration and other TPP partners have also warned against introducing currency into the deal.

"We simply don't think that's the forum in which you would have currency manipulation rules," Simon Newnham, minister-counsellor for trade at the Australian embassy in Washington, said at a Wilson Center event on Friday.

(Reporting by Aaron Sheldrick; Writing by Krista Hughes; Editing by Richard Chang)

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