News from U.S. Senator Olympia J. Snowe
Chair, Senate Committee on Small Business and Entrepreneurship
For Immediate Release: September 12, 2006
Contact:  Chris Chichester, 202-228-5843

SNOWE URGES TREASURY TO TAKE ACTION AGAINST UNFAIR CHINESE TRADE PRACTICES

 (Washington, DC) – U.S. Senator Olympia J. Snowe (R-Maine), Chair of the Senate Committee on Small Business and Entrepreneurship, responded to the Commerce Department’s announcement today that the U.S. trade deficit has reached an all-time high: 

"Congress has endured enough rhetoric and enough reports that have repeatedly failed to force the Chinese government to honor its international trade obligations.  I urge the Treasury Department to take action immediately and get tough with China's continued currency manipulation.   Without such action, American jobs and our job creation potential will remain in jeopardy.” 

"Small business owners in Maine and across our nation are fighting to remain competitive with countries such as China that flagrantly disregard international laws established to ensure fair trade.  Although China continues to offer vague promises for change at some undetermined time in the future, nothing has been done.  Congress will be forced to act if the Treasury Department continues its pattern of indifference.”

Senator Snowe has introduced “The Fair Currency Practices Act” (S. 984), legislation to force nations to live up to their international obligations and stop undervaluing their currencies.   It has three key provisions.  The first would alter the criteria by which the Treasury Department is required to enter into negotiations with foreign countries that it labels as currency manipulators.  The second would further clarify the working definition of manipulation under the Exchange Rates and International Economic Policy Coordination Act of 1998.  Finally, the Fair Currency Practices Act would instruct Treasury to undertake an extensive examination of China's trade surplus, with particular attention paid to China's suspect trade data, and report on its findings.

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