Congresswoman Chellie Pingree supports legislation to benefit paper companies and protect mill jobs in Maine

This week Congresswoman Chellie Pingree voted to address trade practices that put Maine manufacturers at a disadvantage to Chinese competitors.

“By undervaluing its currency, China is able to make their exports artificially cheaper than products made here in the United States. In Maine this puts our paper mills—and the thousands they employ—at a severe disadvantage and great risk,” said Pingree. “We need to save those jobs and create more by leveling the playing field.”

Overwhelmingly passed, the legislation allows the Obama Administration to levy tariffs on goods from China or other countries that get an unfair trade advantage by undervaluing their currency. Pingree is a cosponsor of the bill, the Currency Reform for Fair Trade Act, and had joined her colleagues in the House in sending a letter to Speaker Pelosi in early September urging her to bring this bill to the floor for a vote.

Economist Paul Krugman estimates that China’s currency policy reduces U.S. GDP by 1.4 percent annually.

Testifying before the International Trade Commission earlier this month, Pingree also criticized China for heavily subsidizing the manufacturing of coated paper, allowing them to flood the market, drive down paper prices, and outcompete paper companies in Maine.

“China’s practices directly hamper our ability to recover from the economic downturn. Their artificial command of the market has forced paper mills in Maine to slow down production and layoff many of their employees,” said Pingree. “We need to protect the livelihood of these communities and keep these and other good-paying manufacturing jobs in Maine.”