Today, Congressman John Salazar helped pass the Currency Reform for Fair Trade Act (H.R. 2378) and offered the following comment:
"This bipartisan bill gives the Administration effective tools to address the unfair trade practice of currency manipulation by foreign countries, especially China. China's unfair trade practices are hurting Colorado workers and workers across the country. Their unfair trade practices make Chinese imports much cheaper than U.S. exports."
The bill makes clear that additional tariffs can be imposed to offset the effects of a "fundamentally undervalued" currency under U.S. trade remedy laws (known as the countervailing duty laws).
China's currency manipulation has reduced American exports, caused the loss of U.S. manufacturing jobs, and significantly contributed to our large trade deficit with China. If China allowed its currency to respond to market forces, it could create a million U.S. manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no cost to the U.S. treasury.
For years, the Bush Administration, the Obama Administration, and Members of Congress have tried to persuade the Chinese government to allow its currency to respond to market forces. No significant progress has been made.
"This bill levels the playing field for our businesses and workers," added Salazar.