Ranking Senator Offers Amendment & Administration Comments on China Currency Bill
On October 4, 2011, Senate Finance Committee Ranking Member Hatch (R-UT) submitted an amendment to the Currency Exchange Rate Oversight Reform Act (S. 1619), which a source states would amend the bill to make it harder for the U.S. to impose countervailing (CV) duties on Chinese imports as a result of currency undervaluation. Hatch has expressed concern that S. 1619 would only have a marginal effect on China's practices, but would potentially target many U.S. exporters for trade retaliation by China.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Fifty-two other amendments to S. 1619 have been submitted; however, not all may be considered. A memo from Senator Hatch states his amendment seeks a long-term and more effective solution to currency manipulation by mandating negotiations with like-minded trading partners to counter the effect of China’s currency practices and to increase multilateral pressure on China and other currency manipulators to modify their practices.
During an October 4, 2011 press conference, the President's Press Secretary declined to discuss in detail the Administration's position on S. 1619, but noted that the Administration "shares the concern of members about the valuation of the Chinese currency and the need to appreciate the value of the Chinese currency." He further stated that the Administration is also "concerned that any action that might be taken would be effective and consistent with our international obligations."
(On October 4, 2011, the Senate agreed to a "motion to proceed" to consideration of S. 1619 and is scheduled to continue its consideration of S. 1619 and its amendments on October 5, 2011. A Senate vote on ending debate on the bill is scheduled on October 6, 2011.)
Hatch memo on his amendment available here
White House press conference available here