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Hagan, Burr cosponsor bipartisan bill targeting China’s currency
Story Date: 9/23/2011
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Source: PRESS RELEASE, 9/22/11
United States Senator Kay R. Hagan (NC) today joined Senator Richard Burr and a bipartisan group of senators in unveiling new legislation that will crack down on China’s currency manipulation, which unfairly and negatively impacts American jobs. In fact, since 2001 North Carolina has lost over 100,000 jobs due to trade with China. The Currency Exchange Rate Oversight Act of 2011 makes changes to U.S. trade law to counter the economic harm to U.S. manufacturers caused by currency manipulation.
“The manufacturing industry has a rich history in North Carolina, but in recent years our state has lost too many manufacturing jobs to an unfair trade environment,” said Hagan. “In the past decade, North Carolina has seen the fourth-largest decline in manufacturing jobs of any state in the country. This bill targets the unfair trade practice of currency manipulation by China, and ensures that American manufacturers can compete in the 21st century global economy.”
“China has been playing games with its currency and we all know it. It is time to get tough. The American workers I know are the best in the world, what they need is a fair playing field,” said Hagan.
According to a recent report from the Economic Policy Institute, North Carolina has lost over 100,000 jobs due to trade with China. The nation has lost approximately 6 million manufacturing jobs, and seen 57,000 manufacturing plants shut down forever. Currency manipulation has been a major cause of that job loss. By manipulating the value of its currency, China has made its own products cheap in the United States, and made American products more expensive in Chinese markets. Moreover, since China joined the World Trade Organization in 2001, the U.S. trade deficit with the country has increased from $83 billion to a record of $273 billion in 2010. Addressing currency manipulation would yield significant benefits to the U.S. economy. According to the study, addressing China’s currency manipulation would positively impact the U.S. economy over the next 18 to 24 months by leading to a 1.9% increase in GDP [$285.7 billion], $71.4 million in annual deficit reduction, and 2.25 million American jobs.
The Currency Exchange Rate Oversight Reform Act of 2011 is intended to reform and enhance oversight of currency exchange rates. The bill would trigger tough consequences for countries that fail to adopt appropriate policies to eliminate fundamental currency misalignment. It would ensure tools, such as the use of countervailing duties on countries that manipulate their currency, may be used to counter the economic harm to U.S. manufacturers caused by currency manipulation.
For a full summary of the bill, click here.
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