News Release
 
Contact: Michael Stumo, 413-854-2580, cpa@prosperousamerica.org
Coalition for a Prosperous America
www.prosperousamerica.org
 
March 11, 2010
 
The Pennsylvania Chapter of the Coalition for a Prosperous America (CPA)
thanked Congressman Jim Gerlach (R-PA-06) for agreeing to co-sponsor
the Currency Reform for Fair Trade Act of 2009 (H.R. 2378).  Members of
the Pennsylvania Chapter of CPA who participated in the CPA legislative
fly in last week asked Congressman Gerlach to co-sponsor this important
legislation.  CPA received notification yesterday that the Congressman
agreed to do so.
 
"Currency manipulation is a major problem for the U.S. economy," said
Joe McGlynn, CPA PA Chapter steering committee member and Vice President
of Campbell Fittings in Boyertown, PA.  "Some foreign countries,
particularly in Asia, peg their currency to the dollar at an unfairly
low rate.  Many people don’t realize the impact, which is a huge tariff
on U.S. exports and a major subsidy to their export sales to the United
States."

There is broad national agreement that several important trading rivals manipulate their currency values unfairly, that China’s manipulation results in an approximately 35% undervaluation, and that this foreign government tactic provides an unfair trade advantage.  Tim Murphy (R-PA-18) and Tim Ryan (D-OH-17) co-sponsored this currency fairness bill to neutralize that foreign advantage.
 
"We are pleased that Congressman Gerlach has agreed to support this important legislation," continued McGlynn.  "Most, but not all, of the Pennsylvania House members have now agreed to co-sponsor.  And both of our Senators have done so.  There is no reason for any of our federal delegation to continue refusing support."
 
When China, for example, pegs its currency to the dollar at an undervalued level, such as 35%, that means all Chinese goods cost 35% less than fair market price.  This is a government subsidy.  It also results in all U.S. exports to China costing 35% more than fair market value.  Free and fair trade cannot exist unless we correct this problem.
 
"My company, and the State of Pennsylvania, cannot employ more people and expand production unless Congress and the Administration tackle this problem that has been ignored in the past," said McGlynn.  "The U.S. needs to be more aggressive in curtailing unfair foreign practices if we are to grow our economy again."
 
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CPA is a national, nonprofit organization representing the interests of 2.6 million citizens through its farmer, rancher, manufacturing and organized labor association and company members.  CPA works for a new and positive U.S. trade policy that delivers prosperity and security to America, its citizens, farms, factories and working people.