Will Strengthen American Manufacturing & Protect Job
September 29, 2010
Washington
DC – Today, U.S. Rep. Ed Perlmutter (CO-07)
issued the following statement after the House passed H.R 2378 – the Currency
Reform for Fair Trade Act as part of the “Make It in America” plan to boost the American
manufacturing base and create jobs. Many experts are concerned the
Chinese government has intervened in world markets, causing its currency to be
undervalued by as much as 25 to 40% which acts as a major subsidy, artificially
making Chinese imports into the U.S.
much cheaper and U.S.
exports to China
much more expensive, which hurts American manufacturing jobs. The
Economic Policy Institute has estimated that Colorado’s 7th District has lost about 5,000
jobs due to China’s
unfair trade practices between 2001 and 2008. “America’s productivity is the best
in the world. Unfortunately, countries like China are tilting the playing field
to gain an advantage. I will continue to make creating long-term American
jobs that can’t be outsourced my number one priority. This bill will help
crack down on Chinese currency manipulation which puts America’s manufactured products and
workers at a disadvantage on the global market. Providing our government
more tools to crack down on China’s
unfair currency practices will help protect the American worker,” stated
Perlmutter. H.R. 2378 contains two key
provisions: 1) Reverses a current Commerce Department practice that has
precluded it from treating foreign government currency practices as an export
subsidy; and 2) Directs the Commerce Department on how to measure the subsidy
provided to foreign producers through currency undervaluation. China’s
currency manipulation has reduced American exports, caused the loss of U.S. manufacturing jobs, and significantly
contributed to our large trade deficit with China. If China allowed its currency to respond to market
forces, it could create 500,000 U.S.
manufacturing jobs and cut our trade deficit with China
by $100 billion a year, with no cost to the U.S. treasury. The Currency Reform for
Fair Trade Act is supported by the Fair Currency Coalition (a coalition of
industry, agriculture, and labor), AFL-CIO, Coalition of Agricultural Producers
(including American Corn Growers & National Farmers Union), United Auto
Workers, U.S. Business and Industry Council, United Steel Workers, American
Iron & Steel Institute, American Manufacturing Trade Action Coalition,
Alliance for American Manufacturing, and National Council of Textile
Organizations. Click here
for these letters and Ways and Means Committee materials. ###