CPA Official Statement:

Bill can be read here:

S. 3134 The Currency Exchange Rate Oversight Reform Act of 2010

The Coalition for a Prosperous America welcomes the introduction of S. 3134 – The Currency Exchange Rate Oversight Reform Act of 2010 – by Senators Schumer, Stabenow and Graham.  This bill has many good elements, and CPA looks forward to improving it.

Currency manipulation by several countries, including but not limited to China, is causing persistent trade deficits.  It is not the only cause of our trade problems, but it is a substantial one.  Free trade cannot exist when currencies are manipulated.  

Some governments can and do intervene in currency markets persistently.  Asian countries, in particular, cause their currencies to be valued low.  The actions are part of a unilateral strategy to export more and import less, and spur growth to the detriment of the U.S., Europe and other economies.  

The only effective and nondiscriminatory remedy is to use countervailing and antidumping duties to neutralize the unfair trade advantage.  Any bill, or any other U.S. action, must have such a trade remedy.

Diplomacy as a remedy has failed, and continues to fail.  CPA does not support negotiations to resolve this problem.

Senator Stabenow and others last year introduced S. 1027, The Currency Reform for Fair Trade Act of 2009, which is still pending in the Senate.  CPA has warmly endorsed that bill.

Senators Schumer and Graham have, in the past, introduced a separate bill relating to providing a remedy to currency manipulation.

The Coalition for a Prosperous America looks forward to helping improve S. 3134 as it moves forward.  These improvements are needed:

  1. DEFINITION:  currency undervaluation needs to be statutorily defined as a countervailable export subsidy.  
  2. CALCULATION:  the methodology for calculating the currency subsidy needs to be specified.
  3. NON-MARKET ECONOMIES:  the CVD remedy needs to be applicable to any exporting country, whether a market economy,  a non-market economy, or some combination thereof.  
  4. EFFECTIVE DATE:  the remedy needs to be applied in all pending cases, not just those filed in the future.

CPA calls upon the Senate Finance Committee, specifically Senators Max Baucus and Charles Grassley, to schedule a hearing on this bill, mark it up, improve it, pass it, and move it to the Senate floor.