House Passes China Currency Bill, Senate Could Consider Later
On September 29, 2010, the House of Representatives passed H.R. 2378, the Currency Reform for Fair Trade Act, by a wide margin of 348 to 79.
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CV Duties Would be Available for “Fundamentally Undervalued Currencies”
The bill would amend U.S. countervailing duty law under 19 USC 1677 to allow (but not require) the International Trade Administration to impose countervailing duties to address subsidies related to a “fundamentally undervalued currency.”
(See ITT’s Online Archives or 09/27/10 news, 10092716, for BP summary of the bill’s requirements.)
Part of “Make It in America” Agenda
The bill is part of House democrats’ “Make It in America” agenda. According to House Majority Leader Hoyer, passage of this bill continues this agenda, levels the trade playing field, and holds China accountable for its unfair currency policy. (See ITT’s Online Archives or 07/22/10 news, 10072223, for BP summary of the Make It in America agenda.)
Administration Has Not Publically Stated if it Supports Bill
The Administration has not publically stated whether it supports the bill, but President Obama has been raising the currency issue with China in recent weeks. (See ITT’s Online Archives or 09/27/10 and 09/22/10 news, 10092736 and 10092123, for most recent BP summaries.)
Senate May Consider China Currency Bill in “Lame Duck” Session
Senator Brown (D), co-sponsor of China currency legislation in the Senate, has issued a press release praising House passage of H.R. 2378, stating that he would “continue fighting with his colleagues” to pass China currency legislation when the Senate returns after the elections in November.
One source suggested that the Senate is likely to consider the House-passed version of H.R. 2378, rather than the Senate’s S. 3134, during the lame duck session.
(According to Congressional sources, S. 3134, the Currency Exchange Rate Oversight Reform Act, is similar to H.R. 2378. See ITT’s Online Archives or 03/17/10 news, 10031712, for BP summary of S. 3134.)