Wednesday, September 29, 2010

Perlmutter Supports Cracking Down on Chinese Currency Manipulation

Will Strengthen American Manufacturing & Protect Jobs

Washington DC – Today, U.S. Rep. Ed Perlmutter (CO-07) issued the following statement after the House passed H.R 2378 – the Currency Reform for Fair Trade Act as part of the “Make It in America ” plan to boost the American manufacturing base and create jobs. Many experts are concerned the Chinese government has intervened in world markets, causing its currency to be undervalued by as much as 25 to 40% which acts as a major subsidy, artificially making Chinese imports into the U.S. much cheaper and U.S. exports to China much more expensive, which hurts American manufacturing jobs. The Economic Policy Institute has estimated that Colorado ’s 7th District has lost about 5,000 jobs due to China ’s unfair trade practices between 2001 and 2008.

“America ’s productivity is the best in the world. Unfortunately, countries like China are tilting the playing field to gain an advantage. I will continue to make creating long-term American jobs that can’t be outsourced my number one priority. This bill will help crack down on Chinese currency manipulation which puts America ’s manufactured products and workers at a disadvantage on the global market. Providing our government more tools to crack down on China ’s unfair currency practices will help protect the American worker,” stated Perlmutter.

H.R. 2378 contains two key provisions: 1) Reverses a current Commerce Department practice that has precluded it from treating foreign government currency practices as an export subsidy; and 2) Directs the Commerce Department on how to measure the subsidy provided to foreign producers through currency undervaluation.

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 500,000 U.S. manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no cost to the U.S. treasury.

The Currency Reform for Fair Trade Act is supported by the Fair Currency Coalition (a coalition of industry, agriculture, and labor), AFL-CIO, Coalition of Agricultural Producers (including American Corn Growers & National Farmers Union), United Auto Workers, U.S. Business and Industry Council, United Steel Workers, American Iron & Steel Institute, American Manufacturing Trade Action Coalition, Alliance for American Manufacturing, and National Council of Textile Organizations. Click here for these letters and Ways and Means Committee materials.

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