February 1, 2007: Congressman Tim Ryan Introduces Bill to Protect Domestic Companies from Foreign Currency Manipulation
Ryan's bill is similar to one he introduced in the 109th Congress, the Chinese Currency Act (H.R. 1498), which had the support of 178 cosponsors
(WASHINGTON, D.C.) - Congressman Tim Ryan (D-OH) introduced legislation yesterday with Congressman Duncan Hunter (R-CA) to help domestic manufacturing companies that are injured by foreign currency manipulation gain relief under U.S. trade laws.
The People's Republic of China, in particular, flouts international trade laws by artificially undervaluing its currency. This enables Chinese exporters to gain up to a 40 percent price advantage over their competitors in the U.S. domestic industry.
The Fair Currency Act of 2007 ("Ryan-Hunter") addresses this unfair advantage by:
- providing injured U.S. industries with effective remedies in the form of countervailing duties on imports that benefit from currency manipulation. This portion of the legislation applies equally to any country, whether a market or non-market economy, whose exchange-rate is found to be unfairly misaligned.
- clarifying that the inclusion of exchange-rate misalignment by the People's Republic of China is a condition to be considered under Section 421 of the Trade Act of 1974. This portion of the legislation was agreed to by China, is consistent with the WTO, and holds China accountable to its market-disruption agreements made as a condition to its accession into the WTO in 2001.
- prohibiting the Department of Defense from procuring Chinese imports that compete with our domestic defense industrial base if China's currency misalignment is determined to be contributing to the disruption of the U.S. industry that manufactures those products.
- requiring the Secretary of the Treasury to determine semi-annually if there is fundamental misalignment or exchange-rate manipulation by any trading partner, and bars the administration from supporting increased voting rights in international financial institutions such as the IMF for such violators.
"If enacted, the Ryan-Hunter bill will provide essential relief for domestic manufacturing companies that are being crushed by China's unfair currency manipulation," Congressman Ryan said. "U.S. companies and their workers deserve the ability to operate in a fair trade market, and our legislation helps level the playing field."