STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. VOINOVICH (for himself and Mr. DEWINE):
S. 1758. A bill to require the Secretary of the Treasury to analyze and report on the exchange rate policies of the People's Republic of China, and to require that additional tariffs be imposed on products of that country on the basis of the rate of manipulation by that country of the rate of exchange between the currency of that country and the United States dollar; to the Committee on Finance.
Mr. VOINOVICH. Mr. President, today Senator DEWINE and I have introduced legislation that will help level the playing field for American manufacturers futilely struggling to keep pace with their Chinese competitors. My legislation, the
Currency Harmonization Initiative Through Neutralizing Action (CHINA) Act of 2003, would allow for the use of tariffs to punish China for unfair trade practices that makes Chinese exports cheaper, in effect subsidizing them, and U.S. exports more expensive. Representatives ENGLISH, BALLENGER, and MARK GREEN, my colleagues on the other side of the Capitol, have already introduced this legislation in that body.
I am deeply concerned with the harm that the People's Republic of China (China) is doing to our economy by pegging the value of its currency, the renminbi, to the U.S. dollar because Ohio is a manufacturing State. Manufacturing contributes to the quality of life in Ohio by providing more than one million jobs for Ohio workers, an annual payroll of more than $45 billion, the second highest weekly earnings of any economic sector, support for local communities and schools with more than $1 billion in corporate franchise and personal property taxes, and more than $26 billion in products to more than 196 countries.
After a significant recession in 2001, the 2002-2003 manufacturing recovery has been the slowest on record; during this time, roughly 2.7 million jobs have been lost. In Ohio, we have lost 170,000 manufacturing jobs since July 2000that's nearly 16 percent or one out of six. Over the past year, I have held numerous listening sessions throughout the State of Ohio to hear from these manufacturers and see what they attribute this loss of jobs to. Overwhelming, I have heard that China, and particularly its policy of pegging its currency to the dollar, is one of their top concerns and is costing Ohio manufacturing jobs. It is these concerns which have led me to introduce this legislation.
If the value of the renminbi is allowed to float freely, as the currencies of our other major trading partners do, it would reflect China's enormous trade surplus and increase significantly in value. China's systematic undervaluation of its currency makes its exports less expensive and puts U.S. workers at a severe disadvantage. This is both unfair and unacceptable.
I have long advocated free trade, provided it is fair trade. China's currency policy clearly tilts the international playing field against workers in Ohio and across the entire United states. This is unacceptable. As a major international trading nation, China's currency should be allowed to float and to have its value reflect its net trade positions with other nations. This is only fair.
My bill will help level the playing field by requiring the Secretary of the Treasury, within sixty days of enactment, to analyze and report to Congress whether China is manipulating its currency to achieve an advantage in trade. If the Secretary finds manipulation, the report to Congress will indicate the degree of manipulation against the dollar. Within thirty days after reporting manipulation to Congress, the Secretary is required to levy tariffs equal to the percentage of manipulation found. This is in addition to tariffs currently in place on Chinese imports.
Furthermore, the Treasury Secretary is directed to report to Congress thereafter on a yearly basis from date of enactment.
Finally, the legislation expresses the sense of Congress that the Administration should pursue all means available (WTO, IMF and Sections 301-310 of the Trade ACt of 1974) to remedy China's currency manipulation.
If we are to stop the hemorrhaging of American manufacturing jobs, we must take strong measures to persuade China to abandon its peg policy and allow its currency to be set in the free and open marketplace. This is exactly what my legislation does.
I would ask that my colleagues, especially from those States that are feeling the effects of this manufacturing crisis deeply, support this legislation and consider cosponsoring it.