Smith Testifies for Nebraska Exporters

Press Release

WASHINGTON, DC- Congressman Adrian Smith (R-NE) today testified before the House Ways and Means Committee on the significance of America's agriculture exports to China. The purpose of the hearing was to examine China's exchange rate policy, its effect on the U.S. economic recovery, and other issues.

"I agree we need to ensure market mechanisms are not distorted. We must also address the ramifications any congressional action might have on the U.S. economy. Any legislative proposal must be given the utmost attention so we do not disrupt our currently growing exports to China, particularly those from the U.S. agriculture industry," Smith said.

U.S. agricultural exports to China continue to grow and are one of the few areas in which the U.S. maintains a large trade surplus. The value of U.S. food and agricultural exports to China more than doubled from $6.8 billion in 2003 to $15.9 billion in 2009. Every dollar in agricultural exports generates $1.65 in further economic activity, with Nebraska's $4 billion in agricultural exports translating into $6.7 in additional economic activity.

During his testimony, Smith asked members to lead by example by following the rules-based system to address the undervaluation of China's currency. Imposing unilateral measures could lead to unjustified restrictions, which often target agriculture products.

"All too often protectionist measures trigger retaliatory actions, which hurt our economy while giving way to international competitors. The wrong policy could not only endanger existing exports to China, but also prevent the United States from negotiating agreements on other exports to China, such as U.S. beef.

I agree China must move toward a market-based exchange rate. In trying to achieve this goal, we must ensure our current export markets are not threatened because Congress has taken legislative action which invites retaliation," Smith said.

Source