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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 Expresses Grave Concern About
2007’s U.S. Trade Deficit and Continued Injury to U.S. Industries
Caused by China’s Undervaluation of Its Currency
(Washington, D.C.) (February 14, 2008) – Against the backdrop of the announcement today by the U.S. Department of Commerce that the U.S. trade deficit in goods with China in 2007 ballooned to an all-time annual high of $256 billion, up from $233 billion in 2006, the China Currency Coalition voiced its grave concern that the weakening of the U.S. manufacturing base and loss of skilled jobs important to the U.S. economy and national security will only worsen and accelerate unless the Administration’s policy of simply urging accelerated revaluation of the yuan in extended dialogue with China is changed.
“China’s substantial undervaluation of its currency is a massive illegal trade subsidy,” said Richard Trumka, co-chair of the coalition and AFL-CIO Secretary-Treasurer. “This is part of a pattern of illegal actions by the Chinese government that results in China exporting far more and importing far less than it would if the yuan’s value reflected reality. While our trade deficit with Europe has declined as the dollar has fallen in value, our deficit with China hits another record, and China’s currency reserves climb to more than $1.5 trillion. All of this comes at the expense of manufacturing jobs, agriculture, and services in the United States and other countries. The workers of this nation are counting on Congress to act now.”
Added Doug Bartlett, co-chair of the coalition, owner of Bartlett Manufacturing Company, Inc., in Cary, Illinois, and Chairman of the U.S. Business and Industry Council, “The China Currency Coalition urges Congress to pass legislation that would address both the trade and monetary aspects of this problem. The U.S. economy is suffering enough as it is. By standing up to the adverse impact of competitive currency depreciation, whether by China or any other country, the United States can make clear that such beggar-thy-neighbor tactics are not going to be tolerated. In particular, the Ryan-Hunter bill, H.R. 2942, would provide trade remedies that the coalition believes are consistent with international law and that would enable injured U.S. companies and workers to defend themselves against the damaging effects of currency undervaluation.”
Observed David Hartquist, the coalition’s legal counsel, “It is important to recognize that H.R. 2942 would impose countervailing or antidumping duties only to the extent that imports into the United States from China or another country were found to be benefiting from exchange-rate misalignment and only as long as those imports were injuring a U.S. industry. Based upon historical data from 2006, it is estimated that less than one percent by Customs value of total imports into the United States from China would be affected. This impact would be rather minor in the context of China’s overall exports to the United States, but would be critical in helping U.S. industries determined to be suffering as a result of China’s undervalued currency.”
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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