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CHINA CURRENCY COALITION WASHINGTON, D.C.

FOR IMMEDIATE RELEASE
Contact: Meg Mullery 202.342.8439
mmullery@kelleydrye.com

Coalition of American Manufacturers, Producers and Workers Welcomes the Currency Reform for Fair Trade Act of 2007

(Washington, D.C.) (June 29, 2007) – The China Currency Coalition, an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing and production, welcomes the introduction by Congressmen Tim Ryan (D-OH) and Duncan Hunter (R-CA) of the Currency Reform for Fair Trade Act of 2007 (H.R. 2942). This WTO consistent legislation updates the Fair Currency Act of 2007 (H.R. 782), introduced earlier this year by the two congressmen, which the coalition also strongly supported.

The coalition noted that H.R. 2942, which was introduced on June 28, most importantly recognizes the hybrid nature of currency manipulation as both a monetary and trade problem by including the following:

  1. Clearly states that countervailing duty trade cases targeting government subsidies can be brought against nonmarket economies such as China.
  2. Defines currency misalignment and how to measure the degree of undervaluation.
  3. Provides that currency misalignment by any country is a countervailable government subsidy.
  4. Permits currency misalignment to be taken into account in antidumping cases, which, according to the coalition, is important because an undervalued currency allows foreign producers to price their products more cheaply than would be the case if the currency were properly valued.
  5. Requires the Treasury Department to take more aggressive actions to deal with currency misalignment than is the case under current law and enhances Congressional oversight of Treasury Department actions.

AFL-CIO Secretary-Treasurer Richard L. Trumka, one of two co-chairs of the coalition, requested quick movement on the legislation on behalf of the federation’s 10 million members. “Our members support this bill, as their jobs continue to be lost to China through unfair competition. The AFL-CIO respectfully urges the Ways & Means Committee to move this bill quickly so that it can be voted on promptly by the full House of Representatives."

Coalition co-chair Doug Bartlett, President of Bartlett Manufacturing Company, Inc., explained, “Companies like mine, forced to lose business and lay off valuable employees because of the Chinese government's manipulation of its currency, need action by Congress now. If U.S. companies and producers cannot compete fair and square, that’s just competition. But when we start off with a 40% disadvantage because of the Chinese government’s monetary manipulation, that is not free enterprise. We welcome the continuing leadership of Congressmen Ryan and Hunter on this vital issue." Bartlett also serves as President of the United States Business Industry Council, an organization formed to champion the interests of America’s domestic family-owned and closely-held firms.

Coalition counsel David A. Hartquist noted that Congressmen Ryan and Hunter have worked diligently on the currency issue since their original bill was introduced in the last Congress. Said Hartquist, “They recognized early on that effective WTO consistent trade remedies are necessary to provide relief to beleaguered American companies, agricultural producers and workers who are being slammed by unfair Chinese competition.”

The coalition estimates the Chinese currency, the yuan, is undervalued by at least 40% as a result of the Chinese government's manipulation of its currency. “Chinese products are frequently priced at less than the cost of the materials contained in the products,” Hartquist continued. “This is illegal government subsidization, pure and simple."

China’s trade surplus with the U.S. continues to increase at record levels and its foreign exchange reserves now exceed $1.2 trillion. Imports from China are increasing at a rate of one billion a week, while over the last twelve months more than 150,000 U.S. manufacturing workers have lost their jobs. Also, today the United States and China share the most imbalanced bilateral trade relationship in the history of the world. Last year, the U.S. trade deficit with China was $233 billion and China accounted for 43 percent of our non-petroleum goods deficit.

Richard Trumka heads the labor federation’s Industrial Union Council and is the youngest secretary-treasurer in AFL-CIO history. Bartlett Manufacturing Company, Inc., located in Cary, Illinois, has been privately owned and operated since 1952 and is a pioneer in printed circuit board interconnect services. David A. Hartquist is a partner at Kelley Drye Collier Shannon in Washington, D.C. and Chairman of the firm’s International Trade and Customs Practice Group

The China Currency Coalition is an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing and production by seeking an end to Chinese currency undervaluation. Additional information on the coalition can be found on its Web site: www.chinacurrencycoalition.org.