Introduced by US Senate Co-sponsors to protect jobs, hold China accountable
Contact: Gary Hubbard, 202-778-4384 (O); 202-256-8125 (C); ghubbard@usw.org
Washington, DC (Mar. 17, 2010) – Leo W. Gerard, International President of the United Steelworkers (USW) welcomed today’s introduction of the “Currency Exchange Rate Oversight Reform Act of 2010” as a bipartisan effort by U.S. Senators Charles Schumer (D-NY), Debbie Stabenow (D-MI) and Lindsey Graham (R-SC).
“The continuing and deliberate undervaluation of currency by foreign governments, in particular China, is one of the most pernicious of unfair trade subsidies,” Gerard declared. “Currency undervaluation has contributed substantially to the loss of millions of American manufacturing jobs in the past few years.”
Also cosponsoring the legislation are U.S. Senators Evan Bayh (D-IN), Sherrod Brown (D-OH), Sam Brownback (R-KS), Ben Cardin (D-MD), Robert Casey (D-PA), Russ Feingold (D-WI), Kirsten Gillibrand (D-NY), Carl Levin (D-MI), Olympia Snowe (R-ME), Arlen Specter (D-PA), and Jim Webb (D-VA).
China continues to be the biggest promoter of beggar-thy-neighbor trade policy over the past decade, deliberately manipulating its undervalued currency -- known as the ‘renminbi’ -- by an estimated 35-40 percent. Meanwhile, employment in American manufacturing has plummeted at the same time that Chinese imports and U.S. trade deficits have set records. In 2009 alone, about 80 percent of the $227 billion deficit with China was a deficit in non-oil manufactured goods.
Gerard said, “The U.S. will not be able to have a full economic recovery, revitalize domestic manufacturing, or increase exports unless we address currency manipulation in a meaningful and fully effective way. We have no more time to waste.”
In its biannual reports, the U.S. Treasury Deptartment has to this date refused to find that the Chinese government is manipulating its currency to gain an unfair trade advantage. The Currency Exchange Rate Oversight Reform Act addresses that by aligning Treasury definitions with International Monetary Fund guidelines.
Significantly, the proposed act requires the U.S. Department of Commerce to investigate currency undervaluation as a countervailable subsidy under U.S. trade remedy laws. The USW believes a countervailing duty remedy is the simplest and most appropriate way to remedy the injurious effects of currency subsidies in a manner consistent with World Trade Organization rules.
The USW president says these important tools are necessary should currency negotiations with China fail. Gerard adds that over all, the proposed Currency Reform Act is an encouraging step forward in the U.S. Senate.
“The USW is committed to working to support bipartisan legislation that takes positive concrete action.,” Gerard states. “The working families of America are counting on Congress to stand up for fair trade and good jobs.”
# # #