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CHINA CURRENCY COALITION WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
Contact: Skip Hartquist 202.342.8450
dhartquist@kelleydrye.com
Angela Brown 202.342.8644
angela.brown@sightlinemarketing.com
China Currency Coalition Urges Congress to Act Promptly to Address Competitive Currency Depreciation by Other Countries, As Dangerous Trade and Monetary Imbalances Worsen
(Washington, D.C.) (January 15, 2008) – Citing the most recent trade data released, the China Currency Coalition today encouraged Congress to pass legislation promptly to address effectively the serious and still growing problem of currency undervaluation by China and other countries.
Speaking on behalf of the coalition’s U.S. manufacturers, farmers, and workers, Richard L. Trumka, co-chair of the coalition and AFL-CIO Secretary-Treasurer, commented, “November’s trade numbers tell us that the U.S. 2007 trade deficit with China is headed to a record $260 billion. This means that China will account for more than 50 percent of our manufacturing goods deficit. This is an unsustainable trade crisis that is driven by China’s illegal intervention in currency markets to keep the yuan undervalued. Congress needs to act now to hold China accountable.”
Added Doug Bartlett, co-chair of the coalition, Chairman of Bartlett Manufacturing Company, Inc., in Cary, Illinois, and Chairman of the U.S. Business and Industry Council, “China’s foreign reserves are now approaching an extraordinary and totally unprecedented $1.4 trillion. As Congress reconvenes, it is critical for U.S. companies and workers that legislation be passed without delay that will address both the trade and monetary aspects of currency misalignment and manipulation. This sort of mercantilist behavior should be labeled for what it is and must be countered in order for the U.S. economy and dollar to regain strength.”
Noted David Hartquist, the coalition’s legal counsel, “The longer this situation is allowed to go unchecked, the more risky and precarious this predicament will become. At least for now, China has decided for its own reasons to allow the yuan to rise in the past month or two somewhat more quickly than previously, but the coalition continues to believe that the yuan remains undervalued with respect to the U.S. dollar by about 40 percent. We respectfully urge that Congress and the President take remedial action here.”
David A. Hartquist is Senior Partner and Chairman of the International Trade Practice Group at Kelley Drye Collier Shannon in Washington, D.C.
The China Currency Coalition is an alliance of industry, agriculture, services, 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.
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