Bush Administration has sorry record of denial and delay

WASHINGTON, DC -The U.S. Department of Treasury today again denied that China is manipulating its currency.  Despite lamentations that China has shown “far too little progress,” today’s Treasury report held no new details on how the Bush Administration would act to rectify China’s current, inflexible currency policy.  It is widely recognized that China’s undervalued currency poses risks to world markets and hurts American businesses trying to compete abroad.

The Bush Administration has been under increasing pressure from Congress to act on China’s currency policies, and many hoped that in today’s report the Administration would finally and clearly state what everyone knows - and what statute requires them to state - China is manipulating its currency. 

“American workers, farmers and businesses should be outraged that this Administration has once again ignored China’s currency manipulation,” said Rep. Cardin.  “The Bush Administration’s legacy of record trade deficits, denial and delay has only strengthened the artificial trade advantage enjoyed by the Chinese today.  The time for complacency has passed - we need to get tough and pass legislation to stand up for American trade interests.”

Democratic members of the House Committee on Ways and Means have proposed a series of measures to address the growing problem of the trade deficit with China.  These measures include the filing of a case to challenge China’s currency manipulation practices in the World Trade Organization as well as introduction of comprehensive legislation in July to rectify a number of the outstanding trade issues between the US and China, including in the areas of currency manipulation, intellectual property rights enforcement, labor rights, other WTO commitments that China has not lived up to, and China’s ongoing use of industrial policy and subsidies to advantage its industries, as well as steps to strengthen and update the U.S. sectoral safeguard mechanism.  

Democratic members have repeatedly called for Congress to promptly bring the legislation, The Fair Trade with China Act (FTCA), H.R. 3306 up for consideration. 

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