Bill Name: Currency Exchange Rate Oversight Reform Act Of 2010 (S
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Summary: 1) Current State of the Bill a. Senate: Currency Exchange Rate Oversight Reform Act of 2010 S.3134 i. Senate Finance Committee 1. Read twice, no current movement. ii. Banking – 1. September 16th – 1000-1230 a. http://banking.senate.gov/public/index.cfm? FuseAction=Hearings.Home b. House: Currency Reform for Fair Trade Act (H.R. 2378) i. Ways and Means Hearing 1. Sept 15th 2010 – 1030 a. http://waysandmeans.house.gov/Hearings/hearingD etails.aspx?NewsID=11305 ii. Ways and Means Hearing 2 with Geithner 1. September 16th – 1400 a. http://waysandmeans.house.gov/Hearings/hearingD etails.aspx?NewsID=11339Senate 2) Atmosphere a. Senate i. According to contact inside Sen. Casey’s office: 1. With the short time span left on the term, the reality of this being brought to a vote before years end is slim, but if it is, it will cause a large stir and WILL cause action. The proponents of the bill are waiting in the wings to jump if an opportunity does present itself. There are rumblings in the halls that some of the more unsatisfied senators are looking for opportunities to bring this up sooner than later, but these reports neither can be verified nor are the common sentiments. b. House i. Calling out tomorrow. 3) Contact List – See attached excel spreadsheet
Table of Contents: 1) Overview of Senate Bill a. Bill name and List of Senators and relevant articles by Senator 2) Overview of House Bill a. Bill name, Status, and List of sponsors and relevant articles by Congressman 3) Notes From Contacts a. Sen. Casey’s Legislative Aid 4) Researcher’s Notes 1) Senate:
Bill Name: Currency Exchange Rate Oversight Reform Act of 2010 (S.3134) Status: :Mar 17, 2010: Read twice and referred to the Committee on Finance.
Sponsor: Senator Charles Schumer
FOR IMMEDIATE RELEASE: May 18, 2010
SCHUMER, JOINED BY BIPARTISAN GROUP OF SENATORS, CALLS FOR CHINA TO STOP SUPPRESSING IMF REPORT THAT COULD BE SMOKING GUN ON CHINA'S CURRENCY MANIPULATION
Annual Report By IMF Staff Is Believed To Have Concluded China Manipulates Its Currency to Gain Unfair Competitive Advantage; China Has Refused To Make Its Report Public Even Though 90 Percent of IMF Countries Do
Senators: China's Efforts To Suppress Report Show It Has Something To Hide— Findings From Hidden Report Could Settle Dispute Over Yuan's Substantial Undervaluation
In Letter, Geither Is Urged To Use Strategic Dialogue To Pressure China To Release Report
WASHINGTON, DC—U.S. Senators Charles E. Schumer (D-NY)—joined by a bipartisan group of nine other senators—urged the Obama administration Tuesday to pressure the Chinese government to stop suppressing the release of an independent report that is said to conclude that China manipulates its currency to gain an unfair competitive advantage.
An annual report issued last summer by the staff of the International Monetary Fund is believed to have found that China intentionally undervalues its currency to fuel growth in the export- oriented sectors of its economy. The finding, if made public, could provide independent validation of U.S. lawmakers’ long-running complaint about China’s currency practices. But to date, the Chinese government has exercised it rights as an IMF member nation and refused to allow its report to be released, even though 90 percent of IMF countries make theirs public.
“This report could be the smoking gun that confirms what many of us already know— China has been intentionally manipulating its currency to gain an unfair trade advantage. The fact that China insists on keeping the report under wraps is reason to believe they have something to hide. The administration should press for the report’s release at next week’s summit,” Schumer said.
In a letter to Treasury Secretary Timothy Geithner, the eight senators urged the administration to use the upcoming Strategic and Economic Dialogue to pressure the Chinese to release its IMF report. The summit takes place May 24 and 25 in Beijing. Geithner and Secretary of State Hillary Clinton are expected to represent the U.S.
The letter to Geithner was signed by Senators Schumer, Lindsey Graham (R-SC), Debbie Stabenow (D-MI), Sam Brownback (R-KS), Sherrod Brown (D-OH), Susan Collins (R-ME), Russ Feingold (D-WI), Carl Levin (D-MI), Jim Webb (D-VA) and Robert Casey (D-PA).
“China’s failure to [make its report public] in 2009, despite regularly opting for transparency in previous years, is troubling, suggesting that China seeks to suppress any findings critical of China’s manipulation of the value of its currency,” the letter states.
The senators behind the letter to Geithner are also sponsoring legislation, first announced in March, that would confront China’s currency misalignment. If enacted, the bill would provide less flexibility to the Treasury Department when it comes to citing countries for currency manipulation. It would also impose stiff new penalties on designated countries, including possible tariffs on the countries’ exports and a ban on any companies from those countries receiving U.S. government contracts.
A copy of the senators’ letter to Geithner appears below.
May 18, 2010
The Honorable Timothy F. Geithner Secretary of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220
Dear Secretary Geithner,
As a member of the International Monetary Fund, China has agreed to subject its economic and financial policies to the scrutiny of the international community. We believe China is failing to live up to this commitment and urge you to convey to the Chinese government the importance of taking a substantive step to demonstrate its willingness to participate in candid, public dialogue about its exchange rate policies and other economic matters. To that end, we propose that at the upcoming S&ED and G-20 meetings you request the Chinese government to make public the Staff Report and other accompanying analysis from the IMF’s 2009 Article IV consultations with China.
The IMF’s annual comprehensive Article IV consultations provide a frank appraisal of a country’s economic and financial policies, including an assessment of its exchange rate policies. IMF member countries have the option to make public the Fund’s assessment. The overwhelming majority – 90 percent of the 186 member countries – opt for transparency, making the extensive information in the IMF’s Staff Reports publicly available on the IMF’s website. China’s failure to do so in 2009, despite regularly opting for transparency in previous years, is troubling, suggesting that China seeks to suppress any findings critical of China’s manipulation of the value of its currency.
Mr. Secretary, in April you decided to delay publication of the Treasury’s exchange rate policy report, apparently in the hope that China might be willing to address concerns about its exchange rate policies in the context of upcoming high-level, multilateral discussions on policies that can help create a stronger, more sustainable, and more balanced global economy. Given China’s past intransigence on exchange rate reform, we are not similarly optimistic that these high-level meetings will generate any significant breakthrough on this issue. As you know, this is one reason why we are moving forward with legislation (the Schumer-Stabenow-Graham Currency Exchange Rate Oversight Act of 2010 (S.3134)) to provide specific consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment.
Nevertheless, the upcoming S&ED and G-20 meetings do present a unique opportunity for the Chinese government to demonstrate a commitment to productive talks on global rebalancing, which necessarily includes a discussion of exchange rate policies. An agreement by the Chinese government to make public the Staff Report from its 2009 Article IV consultations would be a constructive contribution to those discussions. We urge you to convey to the Chinese government the importance of taking this visible step.
Sincerely,
Senators Schumer, Graham, Stabenow, Brownback, Brown (OH), Collins, Feingold, Levin, Webb, Casey. http://schumer.senate.gov/new_website/record.cfm?id=325018
Co-Sponsors:
Sen Bayh, Evan [IN] - 3/17/2010 Sen Brown, Sherrod [OH] - 3/17/2010 Making sure that Ohio industry isn't undermined due to unfair trade by pursuing remedies to counteract China's currency manipulation and subsidization of domestic industries. http://brown.senate.gov/newsroom/press_releases/release/?id=C8E61C3F-C350- 4659-BF14-E154ADD9C73F Sen Brownback, Sam [KS] - 3/17/2010 Sen Burr, Richard [NC] - 4/30/2010 Sen Cardin, Benjamin L. [MD] - 3/17/2010 Sen Casey, Robert P., Jr. [PA] - 3/17/2010 http://casey.senate.gov/newsroom/press/release/?id=E7C18579-8750-4DE3- 87B0-49371F9A146B Sen Collins, Susan M. [ME] - 3/17/2010 Sen Feingold, Russell D. [WI] - 3/17/2010 Sen Gillibrand, Kirsten E. [NY] - 3/17/2010 Sen Graham, Lindsey [SC] - 3/17/2010 http://lgraham.senate.gov/public/index.cfm? FuseAction=PressRoom.PressReleases&ContentRecord_id=b821f570-802a-23ad- 4707-8d011e960d4e Sen Levin, Carl [MI] - 3/17/2010 Chairman Levin Statement on Department of Commerce Announcement on CVD Cases (Washington D.C.)- Ways and Means Committee Chairman Sander M. Levin (D-MI) issued the following statement today following an announcement by the Department of Commerce regarding countervailing duty petitions filed by U.S. companies and workers:
“China’s currency has not appreciated significantly since China announced a change in its exchange rate policy in June. China’s undervalued currency contributes to the U.S. trade deficit, which is a drag on U.S. economic growth and job creation. The trade deficit took 3.4 percentage points off GDP growth in the 2nd quarter of 2010, the most since 1947.
“Years of high-level dialogue with China have failed to resolve this issue. And today, the Department of Commerce found that two petitions before it failed to allege facts sufficient to initiate an investigation on whether China’s currency manipulation is a countervailable subsidy. It is important to note that Commerce did not find that currency manipulation cannot be addressed as a countervailable subsidy. That alternative will be reviewed at the Ways and Means Committee hearing on China’s exchange rate policy on September 15, as will other courses of action.”
http://www.house.gov/apps/list/press/mi12_levin/PR8312010.shtml
Sen Lincoln, Blanche L. [AR] - 3/17/2010 Sen Nelson, E. Benjamin [NE] - 4/15/2010 Sen Reed, Jack [RI] - 3/17/2010 Sen Snowe, Olympia J. [ME] - 3/17/2010 Sen Specter, Arlen [PA] - 3/17/2010 Sen Stabenow, Debbie [MI] - 3/17/2010 Sen Webb, Jim [VA] - 3/17/2010
Press Release of Senator Wyden
SENATORS TO PRES. OBAMA: ADMINISTRATION MUST DO MORE TO COMBAT UNFAIR TRADE PRACTICES
11 Senators Raise Concerns over Chinese Currency Manipulation and Effect on Exports; Call for “Level Playing Field” for U.S. Businesses and Workers
Wednesday, August 4, 2010
WASHINGTON, D.C.—U.S. Senators Sherrod Brown (D-OH), Olympia Snowe (R- ME), Charles Schumer (D-NY), Debbie Stabenow (D-MI), Jim Bunning (R-KY), Arlen Specter (D-PA), Susan Collins (R-ME), Ron Wyden (D-OR), Ben Cardin (D- MD), Bob Casey (D-PA), and Carl Levin (D-MI) today sent a letter to President Obama calling for stronger action on behalf of U.S. businesses and workers competing against unfair trade practices conducted abroad, particularly the manipulation of currency by the Chinese government to unfairly boost exports. The senators urged the President to do more to combat these unfairly-subsidized imports and for the U.S. Department of Commerce and other federal agencies to “use the available trade enforcement authorities provided by the Congress to ensure a level playing field for U.S. businesses and the workers upon which they rely.”
“There is no doubt that the Chinese government is manipulating its currency to keep its value lower than it otherwise would be which gives its exports a significant price advantage over U.S. manufactured goods. We are gravely concerned by the Administration’s failure to address China’s currency practices and other predatory actions,” the senators wrote. “In particular, the Administration has not actively used the trade enforcement authorities and tools it has to defend American manufacturers and workers against unfairly subsidized imports.”
“An effective strategy to enforce trade commitments includes steps to combat currency manipulation, the evasion of trade remedy duties, and foreign non-tariff trade barriers. A framework that provides for a balanced approach to trade will enable the Congress to support a comprehensive trade agenda and the key nominees that are required to implement it,” the senators continued. “During this economic recovery, it is critical the Administration use all trade enforcement tools available to ensure U.S. industries the opportunity to compete fairly and export goods and services.”
The full letter to President Obama is below.
August 4, 2010
President Barack Obama
The White House
1600 Pennsylvania Ave, N.W.
Washington, D.C. 20500
Dear President Obama:
We are looking forward to the release of the National Export Initiative this September, as outlined in Executive Order 13534. We support the goal to double exports in the next five years, and are committed to working with the Administration and the private sector to achieve that goal.
Nevertheless, the focus on growing exports must not and cannot come at the expense of ensuring a fair playing field for our manufacturers. American manufacturers -- forced to compete against the predatory practices of one of our major trading partners -- are struggling to stay solvent. And, to state the obvious, we need a strong, healthy manufacturing sector if we truly hope to achieve our goal of doubling exports in the next five years.
There is no doubt that the Chinese government is manipulating its currency to keep its value lower than it otherwise would be which gives its exports a significant price advantage over U.S. manufactured goods. We are gravely concerned by the Administration’s failure to address China’s currency practices and other predatory actions. In particular, the Administration has not actively used the trade enforcement authorities and tools it has to defend American manufacturers and workers against unfairly subsidized imports.
We believe that a vital component of an export and jobs expansion strategy is a trade agenda that places as much priority on combating unfair trade practices as on obtaining commitments to open foreign markets to American goods and services. Imports are now surging into the U.S. – they are growing much faster than exports – and failure to address those that receive foreign subsidies or benefit from currency manipulation undermine the nation’s export and economic objectives.
An effective strategy to enforce trade commitments includes steps to combat currency manipulation, the evasion of trade remedy duties, and foreign non-tariff trade barriers. A framework that provides for a balanced approach to trade will enable the Congress to support a comprehensive trade agenda and the key nominees that are required to implement it.
China’s actions to subsidize its exports pose both immediate and long-term challenges to American manufacturers and workers still recovering from the economic recession. While we recognize the Chinese government recently allowed its currency to begin to appreciate, the path towards its currency appreciating to a true market-based value remains long. Until that happens, the fair implementation of trade remedy laws is required to provide industries a life-line to compete. If one manufacturer is forced to close because we fail to combat subsidized imports, that is one less manufacturer able to export goods abroad.
The Commerce Department is continuing to delay consideration of allegations from domestic coated paper producers and aluminum extrusion producers that China’s currency manipulation is a countervailable subsidy. This delay is indefensible. The law is straightforward – it requires that the Commerce Department initiate an investigation to determine whether a countervailable subsidy is provided if the domestic industry “alleges” the elements necessary for the imposition of a countervailing duty and provides “information reasonably available” to the domestic industry supporting the allegations.
We believe the Commerce Department has the capability to apply the correct legal standard for assessment of an allegation and has the authority under current law to do so. It is all the more troubling, therefore, that the Department has refused for many months to even investigate the allegations and evidence provided by domestic manufacturers that China’s currency practices provide a countervailable subsidy. During this economic recovery, it is critical the Administration use all trade enforcement tools available to ensure U.S. industries the opportunity to compete fairly and export goods and services. We encourage you to consider whether the Commerce Department and other federal agencies are doing their part to use the available trade enforcement authorities provided by the Congress to ensure a level playing field for U.S. businesses and the workers upon which they rely. This includes ensuring foreign producers do not evade legitimate anti-dumping and countervailing duties.
We are eager to work with you to address these issues and to move forward with trade policies that promote exports, long-term economic growth and job creation.
Press Releases http://wyden.senate.gov/newsroom/press/release/?id=ee843d91-31a5- 4d1a-9eb8-9285abe57cfe
Finance Committee:
Grassley: http://finance.senate.gov/newsroom/ranking/release/?id=a8082569-0576-492c-aab4- f10d7e63fbbe http://finance.senate.gov/newsroom/ranking/release/?id=aeabbe02-bd27-408e-b368- bfff1e5fea8e 2) HOUSE:
H.R.2378 Title: Currency Reform for Fair Trade Act Sponsor: Rep Ryan, Tim [OH-17] (introduced 5/13/2009) Cosponsors (133) Related Bills: S.1027, S.1254, S.3134 Latest Major Action: 5/13/2009 Referred to House committee. Status: Referred to the House Committee on Ways and Means. COSPONSORS(133), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)
Rep Altmire, Jason [PA-4] - 5/13/2009 Rep Andrews, Robert E. [NJ-1] - 3/25/2010 Rep Arcuri, Michael A. [NY-24] - 5/13/2009 Rep Baca, Joe [CA-43] - 7/7/2009 Rep Bachus, Spencer [AL-6] - 12/1/2009 Rep Baldwin, Tammy [WI-2] - 7/19/2010 Rep Barrett, J. Gresham [SC-3] - 5/13/2009 Rep Barrow, John [GA-12] - 3/25/2010 Rep Berry, Marion [AR-1] - 5/20/2009 Rep Bishop, Rob [UT-1] - 5/20/2009 Rep Boccieri, John A. [OH-16] - 3/25/2010 Rep Boren, Dan [OK-2] - 5/6/2010 Rep Boswell, Leonard L. [IA-3] - 5/13/2009 Rep Boucher, Rick [VA-9] - 5/13/2009 Rep Brady, Robert A. [PA-1] - 4/13/2010 Rep Braley, Bruce L. [IA-1] - 5/13/2009 Rep Brown, Henry E., Jr. [SC-1] - 5/13/2009 Rep Burton, Dan [IN-5] - 5/13/2009 Rep Buyer, Steve [IN-4] - 6/22/2010 Rep Calvert, Ken [CA-44] - 5/13/2010 Rep Carney, Christopher P. [PA-10] - 5/20/2009 Rep Coble, Howard [NC-6] - 5/13/2009 Rep Coffman, Mike [CO-6] - 2/23/2010 Rep Connolly, Gerald E. "Gerry" [VA-11] - 3/25/2010 Rep Conyers, John, Jr. [MI-14] - 5/13/2009 Rep Costello, Jerry F. [IL-12] - 5/13/2009 Rep Courtney, Joe [CT-2] - 7/19/2010 Rep Critz, Mark S. [PA-12] - 6/9/2010 Rep Cummings, Elijah E. [MD-7] - 3/25/2010 Rep Dahlkemper, Kathleen A. [PA-3] - 7/7/2009 Rep Davis, Lincoln [TN-4] - 3/4/2010 Rep DeFazio, Peter A. [OR-4] - 5/13/2009 Rep Delahunt, Bill [MA-10] - 3/25/2010 Rep DeLauro, Rosa L. [CT-3] - 9/17/2009 Rep Dent, Charles W. [PA-15] - 3/15/2010 Rep Dingell, John D. [MI-15] - 9/24/2009 Rep Donnelly, Joe [IN-2] - 7/10/2009 Rep Doyle, Michael F. [PA-14] - 7/7/2009 Rep Duncan, John J., Jr. [TN-2] - 4/13/2010 Rep Edwards, Chet [TX-17] - 6/22/2010 Rep Ehlers, Vernon J. [MI-3] - 10/29/2009 Rep Ellsworth, Brad [IN-8] - 5/13/2010 Rep Filner, Bob [CA-51] - 10/29/2009 Rep Foster, Bill [IL-14] - 4/28/2010 Rep Gerlach, Jim [PA-6] - 3/10/2010 Rep Green, Gene [TX-29] - 5/13/2009 Rep Griffith, Parker [AL-5] - 5/25/2010 Rep Gutierrez, Luis V. [IL-4] - 3/25/2010 Rep Halvorson, Deborah L. [IL-11] - 4/15/2010 Rep Hare, Phil [IL-17] - 5/13/2009 Rep Higgins, Brian [NY-27] - 5/13/2009 Rep Hill, Baron P. [IN-9] - 4/20/2010 Rep Hinchey, Maurice D. [NY-22] - 5/26/2010 Rep Hodes, Paul W. [NH-2] - 5/6/2010 Rep Hoekstra, Peter [MI-2] - 5/20/2009 Rep Holden, Tim [PA-17] - 5/13/2009 Rep Holt, Rush D. [NJ-12] - 5/13/2009 Rep Hunter, Duncan D. [CA-52] - 5/20/2009 Rep Inglis, Bob [SC-4] - 5/20/2009 Rep Jackson, Jesse L., Jr. [IL-2] - 5/11/2010 Rep Johnson, Eddie Bernice [TX-30] - 5/13/2009 Rep Jones, Walter B., Jr. [NC-3] - 5/13/2009 Rep Kagen, Steve [WI-8] - 5/13/2009 Rep Kanjorski, Paul E. [PA-11] - 8/10/2010 Rep Kaptur, Marcy [OH-9] - 11/3/2009 Rep Kildee, Dale E. [MI-5] - 5/13/2009 Rep Kilroy, Mary Jo [OH-15] - 3/23/2010 Rep Kissell, Larry [NC-8] - 5/20/2009 Rep Larson, John B. [CT-1] - 3/25/2010 Rep LaTourette, Steven C. [OH-14] - 4/20/2010 Rep Lee, Christopher J. [NY-26] - 5/13/2009 Rep Lipinski, Daniel [IL-3] - 5/20/2009 Lipinski Slams Treasury Secretary's Delay in Addressing Chinese Currency Manipulation that Destroys American Jobs (April 7, 2010)
Today, Congressman Dan Lipinski (IL-3) announced his strong opposition to Treasury Secretary Timothy Geithner's decision to delay the release of a scheduled April 15 report in order to avoid naming China as a currency manipulator. "This delay by Secretary Geithner is another nail in the coffin for tens of thousands of American jobs and hundreds of American businesses," Congressman Lipinski said. "Washington already has waited much too long for China to change its policy of manipulating its currency to destroy American jobs and businesses. We all know China is manipulating its currency to keep the price of its exports artificially low and the price of imports from the United States and elsewhere artificially high. It's time we stopped tip-toeing around the Chinese government and took concrete action to help American workers."
Over the weekend, Secretary Geithner issued a statement indicating that he would delay the April 15 Report to Congress on International Economic and Exchange Rate Policies for an unspecified period of time. In the meantime, the administration plans to continue talking to China despite the fact that such discussions have proved fruitless in the past. Although China's currency may be undervalued by as much as 40 percent, Secretary Geithner only hinted at the depths of the problem in his statement.
"Talking with China about this issue has done nothing but allow it to continue to steal American jobs during a period of record-high unemployment," said Congressman Lipinski, who also joined 11 other members of the Populist Caucus in issuing a separate letter today opposing Geithner's decision. "What reason do we have to believe that more talk will do anything to change that in the near future? Every day that we wait to take action is another day Chinese manufacturers enjoy an unfair advantage and flood our country with goods that all too often are unsafe or shoddily made. Instead of waiting for China to do whatever it pleases, we need to level the playing field for American companies."
Congressman Lipinski was part of a bipartisan group of 130 members of the House of Representatives that sent a letter last month to Secretary Geithner and Commerce Secretary Gary Locke demanding action to combat China's currency manipulation. Among other things, the letter urges the Department of Commerce to apply the U.S. countervailing duty law in defense of American companies that have suffered as a result of manipulation.
"By pegging the renminbi to the U.S. dollar at a fixed exchange rate, China unfairly subsidizes its exports and disadvantages foreign imports," the letter states. "As we work to promote a robust U.S. economic recovery, it is imperative that we address this paramount trade issue with all available resources."
(April 7, 2010) http://www.lipinski.house.gov/index.php? option=com_content&task=view&id=1126&Itemid=44
Rep Loebsack, David [IA-2] - 5/11/2010 Rep Luetkemeyer, Blaine [MO-9] - 6/24/2010 Rep Lynch, Stephen F. [MA-9] - 3/25/2010 Rep Maffei, Daniel B. [NY-25] - 4/29/2010 Rep Manzullo, Donald A. [IL-16] - 5/13/2009 Rep Massa, Eric J. J. [NY-29] - 6/10/2009 Rep McCarthy, Carolyn [NY-4] - 3/25/2010 Rep McCotter, Thaddeus G. [MI-11] - 5/20/2009 Rep McGovern, James P. [MA-3] - 7/19/2010 Rep McHenry, Patrick T. [NC-10] - 5/20/2009 Rep McHugh, John M. [NY-23] - 5/13/2009 Rep McIntyre, Mike [NC-7] - 4/29/2010 Rep Michaud, Michael H. [ME-2] - 5/13/2009 Rep Miller, Brad [NC-13] - 6/10/2009 Rep Miller, Candice S. [MI-10] - 12/1/2009 Rep Miller, George [CA-7] - 7/28/2010 Rep Mollohan, Alan B. [WV-1] - 11/6/2009 Rep Murphy, Christopher S. [CT-5] - 5/11/2010 Rep Murphy, Patrick J. [PA-8] - 4/13/2010 Rep Murphy, Tim [PA-18] - 5/13/2009
Murphy Shows ‘Steely’ Resolve Against Chinese Attempt to Buy US Factory
On Thursday, Chinese steelmaker Anshan Iron & Steel Group announced it would back out of its attempt to purchase a US steel plant after calls for an investigation into the deal by Congressional Steel Caucus Vice Chair Tim Murphy. However, in typical fashion, Chinese leaders flip-flopped in less than 24 hours, saying that plans to further undermine the American steel market will move forward as scheduled.
In May, Anshan Iron & Steel Group, which is a subsidiary of the Chinese government, announced that it would become the first Chinese organization to invest in an American steel company. As a company financially backed by the Chinese government, Anshan has limitless funding opportunities that would enable it to undercut the domestic steel industry. A Chinese steel takeover would crush an already fragile American steel market for the profit of the Chinese government.
Deeply concerned with the precedent and the possible security threat, the Congressional Steel Caucus led by Rep. Pete Visclosky (D-IN) and Rep. Murphy drafted a letter with signatures from 50 members of Congress to US Treasury Secretary Timothy Geithner in July. The letter stated not only the Members’ concerns about a communist-backed company unfairly taking advantage of the US steel market, but also stressed the national security risks posed by granting the Chinese access to American infrastructure technology.
While Thursday’s news reflected Anshan’s recognition of American disapproval, today’s reversal reflects more of the same from China.
“We’re disappointed but not surprised at the latest about-face on the Anshan investment in the US steel market. China has a history of inconsistent statements; government officials repeatedly flip flop on their commitments whether it be related to the US steel industry, trade practices or currency manipulation. This most recent revelation is troubling but we are steadfast in our commitment to protect US steel manufacturers and our national security from being undermined by China.”
Click here to read the Steel Caucus letter to Secretary Geithner. http://murphy.house.gov/index.cfm?sectionid=135§iontree=23,24,135&itemid=1378
Rep Murtha, John P. [PA-12] - 6/4/2009 Rep Myrick, Sue Wilkins [NC-9] - 5/13/2009 Rep Olver, John W. [MA-1] - 5/13/2009 Rep Perriello, Thomas S.P. [VA-5] - 10/29/2009 Rep Peters, Gary C. [MI-9] - 6/4/2009 Rep Pitts, Joseph R. [PA-16] - 5/21/2009 Rep Platts, Todd Russell [PA-19] - 5/13/2009 Rep Rahall, Nick J., II [WV-3] - 5/18/2010 Rep Richardson, Laura [CA-37] - 7/7/2009 Rep Rogers, Harold [KY-5] - 10/29/2009 Rep Rogers, Mike D. [AL-3] - 11/3/2009 Rep Rogers, Mike J. [MI-8] - 5/13/2009 Rep Rohrabacher, Dana [CA-46] - 5/13/2009 Rep Ross, Mike [AR-4] - 5/18/2010 Rep Sanchez, Linda T. [CA-39] - 5/11/2010 Rep Sanchez, Loretta [CA-47] - 3/25/2010 Rep Schakowsky, Janice D. [IL-9] - 6/28/2010 Rep Schauer, Mark H. [MI-7] - 12/9/2009 Rep Sensenbrenner, F. James, Jr. [WI-5] - 6/4/2009 Rep Sestak, Joe [PA-7] - 7/29/2010 Rep Shea-Porter, Carol [NH-1] - 3/25/2010 Rep Sherman, Brad [CA-27] - 6/10/2009 Congressman Brad Sherman Proposes Revoking China's MFN Status
August 4, 2010 1:18 PM
Washington, D.C.— Congressman Brad Sherman proposes revoking Most Favored Nation (MFN) status for China and directing the President to negotiate a new trading relationship with the country that is designed to eliminate the trade imbalance.
Sherman, the Chairman of the Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade, is joined by the Ranking Member of the full Foreign Affairs Committee, Ileana Ros-Lehtinen (R-FL), among others, in introducing the legislation.
The bill, H.R. 6071, revokes MFN for China six months after enactment and directs the President to negotiate a new trading relationship with China designed to eliminate the trade imbalance within four years. Finally, the bill provides for the expedited consideration of any new trade partnership with China that will bring the trade deficit down to zero within four years.
“The U.S.-China trade relationship is horrendously lopsided, and it has not lived up to the promises of those who encouraged us to give preferential trade treatment to China. In the year 2000, we were told that it would allow for almost unlimited trade and would create opportunities for Americans to manufacture items and send them to China; that it would boost the U.S. economy and create jobs,” said Congressman Sherman. “Unfortunately, we have seen the opposite occur. This is why I have introduced legislation to revoke Most Favored Nation status from China until the President establishes a more level playing field between our two nations.”
The United States made MFN status for China permanent on October 10, 2000. Congressman Sherman and Congresswoman Ros-Lehtinen voted no. The advocates of MFN for China promised that we would see more jobs for Americans, free trade, and a decline in our trade deficit with China. Instead, China has abused the trading relationship in many ways, engaging in abuses ranging from currency manipulation to piracy of intellectual property.
The United States’ trade deficit with China has grown from approximately $84 billion in 2000 to nearly $227 billion in 2009. For every dollar’s worth of goods the United States imports from China, our country exports only 23 cents worth of goods to China. Our exports to China equal only 1.6% of China’s GDP, and this percentage has actually declined since 2006.
The following members of congress are original cosponsors of this legislation: Ileana Ros-Lehtinen (R-FL), Carol Shea-Porter (D-NC), Walter Jones (R-NC), Steve Kagen (D- WI), Patrick Murphy (D-PA), and Peter DeFazio (D-OR).
Click here to view H.R. 6071. http://bradsherman.house.gov/2010/08/congressman-brad-sherman-proposes-revoking- chinas-mfn-status.shtml
Rep Shuler, Heath [NC-11] - 5/13/2009 Rep Shuster, Bill [PA-9] - 5/13/2009 Rep Slaughter, Louise McIntosh [NY-28] - 5/21/2009 Rep Souder, Mark E. [IN-3] - 5/13/2009 Rep Space, Zachary T. [OH-18] - 6/26/2009 Rep Spratt, John M., Jr. [SC-5] - 10/8/2009 Rep Stark, Fortney Pete [CA-13] - 6/22/2010 Rep Stupak, Bart [MI-1] - 7/13/2010 Rep Sutton, Betty [OH-13] - 5/13/2009 Rep Thompson, Glenn [PA-5] - 5/21/2009 Rep Turner, Michael R. [OH-3] - 3/2/2010 Rep Visclosky, Peter J. [IN-1] - 5/13/2009 Rep Welch, Peter [VT] - 4/13/2010 Rep Westmoreland, Lynn A. [GA-3] - 5/13/2009 Rep Whitfield, Ed [KY-1] - 10/8/2009 Rep Wilson, Charles A. [OH-6] - 5/13/2009 Rep Wilson, Joe [SC-2] - 5/13/2009 Rep Woolsey, Lynn C. [CA-6] - 5/6/2010 Rep Young, Don [AK] - 7/14/2010
3) Sources:
Source: Jennifer McCloskey, Sen. Casey's Office
Summary:
Does not realistically see anything happing before EOY, 3-4 weeks remaining in term--> other more pressing issues. Talked about politics of the situation - multi faceted, partly not to do with China (just no time) But still may see something mutual out of China and US in coming weeks Fed up with china's half measures recourse could be seen from commerce treasury or state but nothing yet China has been good playing the hand they have been dealt if put on floor, "everything will go to hell" and there will be some sort of action --> many of the bills strong supporters are waiting in the wings heard some rumblings in the halls of things that some strong supporters not content in waiting but nothing confirmed still meeting weekly to discuss this issue In reference to the hearings this week, most likely more of the same -- but listen to the questions to see where the committee is at Still engaged with China but too slow, too little Do admit that many people (unions and labourers) see this as number 1 issue Others see this as another issue "in the hopper" She is very excited to talk about the issue and requested to be contacted if any more info was needed. Also repped: Schumer, Brown, Graham, Bunning, and Snowe as great assets.
Currently waiting on call backs from 18 other offices.
4) Notes: a. When calling the House, call: i. Tim Ryan D OH 17 ii. Brad Sherman D- CA 27 1. proposed own legislation on the subject – see above iii. Three TX congressmen 1. Thomas Edwards 17 2. Raymond Green 29 3. Eddie Johnson 30 iv. Also look to letter just signed by 93 senators 1. At least add Representative Tim Murphy 2. http://news.yahoo.com/s/nm/20100913/pl_nm/us_usa_chin a_currency;_ylt=AgPqk9KstO43CbzfyFnUmPkBxg8F;_yl u=X3oDMTJyOTdwYjFnBGFzc2V0A25tLzIwMTAwOT EzL3VzX3VzYV9jaGluYV9jdXJyZW5jeQRwb3MDNAR zZWMDeW5fcGFnaW5hdGVfc3VtbWFyeV9saXN0BHN sawNob3VzZWxhd21ha2U- v. Angle 1. I was successful as a caller from Stratfor – the online NON MEDIA publication a readership of 350,000, writing a report on Chinese American Bilateral ties and would LOVE to include a portion on this bill – update on status as well as atmosphere around the senate. 2. Also be sure to ask to speak to the financial aid specifically otherwise you run the risk of getting kicked over to the press side. If there are any hesitation in the voice, explain you aren’t looking for a quote but background and a sense of place within the committee. 3. We should see more and more buzz as there are 2 hearings coming up this week. 4. Also, look for call backs.