Hearing of the Commerce, Trade and Consumer Protection Subcommittee of the House Energy

Federal News Service March 31, 2004 Wednesday
Copyright 2004 The Federal News Service, Inc.
Federal News Service

March 31, 2004 Wednesday

HEADLINE: PANEL I OF A HEARING OF THE COMMERCE, TRADE AND CONSUMER PROTECTION SUBCOMMITTEE OF THE HOUSE ENERGY AND COMMERCE COMMITTEE

SUBJECT: U.S.-CHINA TRADE

CHAIRMAN: REPRESENTATIVE CLIFF STEARNS (R-FL)

WITNESS: CHARLES FREEMAN III, DEPUTY ASSISTANT U.S. TRADE REPRESENTATIVE

LOCATION: 2123 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.

BODY:

REP. STEARNS: Good morning. The subcommittee will come to order.

Today we'll hear from a number of distinguished witnesses on a topic that is both important and timely. The U.S.-China Joint Commission on Trade is scheduled to meet on the 21st of April and the 22nd for its annual Cabinet-level meeting.

BREAK IN TRANSCRIPT

REP. GENE GREEN (D-TX): Thank you, Mr. Chairman. And I thank you and the ranking member for holding this hearing on U.S.-China trade, and I'm pleased that both the chairman of our full committee has an interest in trade issues, and I think it's very appropriate that our subcommittee exerted jurisdiction over trade issues.

Article One, Section Eight of the Constitution clearly states that the U.S. Congress has the sole authority to regulate trade with foreign countries. With the approval of fast track authority, I think Congress abdicated a lot of our authority, except for one vote on the floor of the House. However, I wholeheartedly support the efforts-our committees' efforts to renew, so our voices can be heard.

This subcommittee's trade jurisdiction extends to non-tariff related trade issues. It is my opinion that most of this country's trade problems with China fall squarely within that jurisdiction. China's currency manipulation, lack of regulation, and state subsidies gives them an unfair competitive advantage when it comes to trade with the United States. But their largest advantage, and our largest disadvantage remains in the issue of the standard of living. The United States cannot engage in a race to the bottom to be able to compete in the global market place that regards low wages-rewards low wages and substandard living conditions. The American people simply can't afford that kind of battle.

Faced with this reality, we have few options that can help us truly level the playing field. And considering the $124 billion trade deficit with China, we must take avenue available. I've joined several efforts in this chamber to encourage China to stop undervaluing its currency. The Chinese currency has been fixed at 8.3 yuan to the dollar, which results in a seriously undervalued yuan. This makes Chinese exports even less expensive and results in an unfair competitive advantage that American products simply can't compete against. In fact, many economists have concluded that the undervalued currency amounts to a 40 percent subsidy for all Chinese exports to the U.S., and a 40 percent tariff on all U.S. exports to China.

Mr. Chairman, I represent the port of Houston, which is the largest U.S. port in foreign tonnage. The ships that come from all over the world, particularly China, have kept my port busy and provided good-paying jobs for my longshoremen. Yet but as simply as I like to see those ships coming in, full containers into the port of Houston, I'd like to see them leave our ports full of American goods going to a foreign market. The cost of the containers is so cheap in China, sadly in most of our foreign ports we have an excess in containers, because it's cheaper to build a container in China than it is to ship one back empty. Again, it would be much better if we could ship it back with some of our products.

There's no question we must take quick action against the unfair trading practices with China, and I'm interested in the suggestions that our witnesses have to offer, and I thank them for appearing today. And again, Mr. Chairman, I thank you and yield back my time.

END