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The Senate Banking Committee is holding a hearing on currency
manipulation today. Retailers like manipulation because they
import goods cheaper, even though their domestic suppliers go out of
business. Let's see how they like it when shipping goods 6000
miles when oil prices are $100 per barrel. Farmers, manufacturers
and labor want the manipulation neutralized.
S.1677 is the
“Currency Reform and Financial Markets Access Act of 2007.” An
amendment submitted by Senators Bunning and Bayh would add
countervailing duties to antidumping duties, and allow industries to
bring cases without the need to persuade the recalcitrant treasury.
The
Coalition for a Prosperous America and the Organization for Competitive
Markets sent a letter to Senator Johnson asking for his support for the
amendment. We think Johnson is supportive, but he may not vote by proxy (which is how he can vote until he returns in full).
Senator Dole from North Carolina announced her support also. Her testimony is below the fold.
UPDATE:
The Bunning/Bayh Amendment failed on the ground that the Banking
Committee did not have jurisdiction. But it is generally
acknowledged that a bill will pass to address currency
misalignment. The press is calling the bill "punitive" but it is really neutralizing bad practices to remove the manipulation incentive and distorting effects.
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U.S. Senator Elizabeth Dole
Committee on Banking, Housing and Urban Affairs
Markup on: “Currency Reform and Financial Markets Access Act of 2007 (S. 1677);”
“Housing Assistance Authorization Act of 2007;” “Private Student Loan
Transparency and Improvement Act of 2007;” “Commission on Natural
Catastrophe Risk Management and Insurance Act of 2007.”
Wednesday, August 1, 2007
Opening Statement
Thank you, Chairman Dodd for holding this markup today. Among the
other bills being considered, I am pleased that we have before us the
“Currency Reform and Financial Markets Access Act of 2007.” The
issue of China currency is important to me and my state, North
Carolina, and that is why I have become a cosponsor of S. 1677.
As this Committee is aware, North Carolina’s economy has been heavily
impacted by thousands of textile and furniture jobs moving
overseas.
We must ensure that other countries play by the rules when it comes to
their currency value, so that American workers are not put at a
competitive disadvantage. This bill will help clarify the
definition of currency manipulation and give the United States a plan
of action to remedy the situation.
Lastly, trade remedies are intended to provide recourse for U.S.
manufacturers against unfair and illegal trade practices by other
countries. As the Senate moves forward in developing a remedy to
address currency manipulation and other mercantilist policies that put
U.S. manufacturers at a disadvantage, I hope we can all agree that
these remedies should be as strong as possible and that we should
provide multiple tools, including anti-dumping and Counter-veiling duty
remedies, to ensure that this problem is addressed in a comprehensive
and meaningful manner.
Chairman Dodd, thank you again for holding this markup and including
the “Currency Reform and Financial Markets Access Act of 2007.”
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