[CTC] Message Box Contrasts -- Communicating our Values

[Citizens Trade Campaign]

Senators Introduce China Currency Manipulation Bill 

By COREY
<http://online.wsj.com/search/term.html?KEYWORDS=COREY+BOLES&bylinesearch=tr
ue>  BOLES and SHAYNDI
<http://online.wsj.com/search/term.html?KEYWORDS=SHAYNDI+RAICE&bylinesearch=
true>  RAICE 

http://online.wsj.com/article/SB10001424052748704688604575126021843868934.ht
ml?mod=WSJ_hpp_MIDDLENexttoWhatsNewsFifth

WASHINGTON-A bipartisan group of U.S. senators on Tuesday introduced
legislation aimed at forcing the Obama administration to take action against
China over its currency policy, reflecting growing anger on Capitol Hill
over the issue.

[AIGANGER]

Charles Schumer

The bill, which would require the U.S. to impose tariffs and other penalties
on countries that failed to address misaligned currencies, is the latest
action by lawmakers targeting the yuan, which many feel is undervalued
against the dollar. Critics say Beijing has kept its currency artificially
low to make its exports cheaper, giving them an advantage in the global
market.

On Monday, the House Ways and Means Committee announced a hearing on China's
currency policy for March 24.

More than 130 congressmen from both parties signed a letter urging Treasury
Secretary Timothy Geithner and Commerce Secretary Gary Locke to take action
on the issue. 

Prospects for the Senate bill, versions of which have been introduced almost
every year since 2005, remain unclear. Senate Majority Leader Harry Reid
(D., Nev.) said it would be appropriate for the chairmen of the banking and
finance committees to consider the issue. Sen. Max Baucus (D., Mont.), the
finance panel chairman, said he was committed to working with the
administration and Congress to "ensure we keep China accountable and keep
American businesses competitive." 

A Treasury Department official said Tuesday that the agency was reviewing
the legislation, which was introduced by Sens. Charles Schumer (D., N.Y.),
Debbie Stabenow (D., Mich.), Sherrod Brown (D., Ohio), Lindsey Graham (R.,
S.C.) and Sam Brownback (R., Kan.). 

"We too have serious concerns about China's exchange- rate policy," the
official said. "The rebound of China's economic growth and exports and their
continued large-scale [foreign-exchange] reserve accumulation indicate
clearly that China should resume appreciation" of the yuan. 

China has, in response, accused the U.S. of trying to weaken the dollar to
increase its exports. Last weekend, Chinese Premier Wen Jiabao denied that
the government was exerting downward pressure on the yuan.

[ltmon]

Lindsey Graham

Treasury must decide by April 15 whether to label China a currency
manipulator in its biannual report to Congress on the currency policies of
its trading partners. Such a designation wouldn't result in the imposition
of any penalties on the offending country, but could further irritate
already tense U.S.-China relations and goad Congress to take action.

Although the administration last year declined to label China a manipulator
and Congress didn't pass any measures addressing the issue, some lawmakers
and industry executives said there was more momentum for Congress to take
action this year. With midterm elections in November, lawmakers are under
pressure to address voters' discontent with the country's continued high
unemployment rate. 

Currently, the administration has discretion on how to respond to countries
seen to be engaging in currency manipulation. The Senate bill would apply an
"objective test" that would force the administration to take increasingly
tough action if a country failed to address the problem. These include
lodging a complaint with the World Trade Organization, blocking the award of
any federal contracts to the offending country's companies, and applying
countervailing duties.

Write to Corey Boles at corey.boles at dowjones.com 

--------------------------------------------------

 

Andrew Gussert
Director, Citizens Trade Campaign
1150  17th  Street N.W., Suite 300
Washington, D.C.  20036

 

Cell#:  202.494.8826
Fax#:  202.293.5308
www.citizenstrade.org

facebook.com/gussert
twitter.com/agussert

 

To receive regular trade updates,
<http://www.citizenstrade.org/mailman/listinfo/ctcfield> click here.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.citizenstrade.org/pipermail/ctcfield-citizenstrade.org/attachments/20100317/4d974be6/attachment-0002.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: image/gif
Size: 24915 bytes
Desc: not available
URL: <http://lists.citizenstrade.org/pipermail/ctcfield-citizenstrade.org/attachments/20100317/4d974be6/attachment-0004.gif>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: image/gif
Size: 24295 bytes
Desc: not available
URL: <http://lists.citizenstrade.org/pipermail/ctcfield-citizenstrade.org/attachments/20100317/4d974be6/attachment-0005.gif>