Rep. Murphy Calls for Immediate Passage of His Currency Reform for Fair Trade Act

Washington, D.C. – The growing US-China trade deficit cost Americans 2.8 million jobs this past decade according to new data from the Economic Policy Institute. The $278 billion annual trade deficit is primarily the result of China’s continued currency manipulation. By deliberately devaluing the Renminbi, Beijing helps Chinese exporters flood the American market with artificially-cheap products.

Representative Tim Murphy (R-PA) said the report showed that Congress and the White House had a responsibility to seize this moment and enact HR 639, the Currency Reform for Fair Trade Act, which would hold China accountable for its illegal currency manipulation. The nonpartisan Peterson Institute has said passage of HR 639 could create an estimated one million jobs. Murphy’s bill passed the House last year on an overwhelming bipartisan vote of 348-79, but died due to inaction by the Senate and Administration.

“A robust global trade market demands accountability from all trading partners. We play by the rules. China does not, and freely admits to violating them,” said Rep. Murphy, who is chairman of the Congressional Steel Caucus.

“Americans aren’t losing their jobs because the Chinese are smarter or more productive. We’re losing because the Chinese won’t engage in fair and free competition. Congress and the White House cannot stand by as factories shutter and millions of good-paying manufacturing jobs continue to disappear. Enacting HR 639 would send a message immediately that America intends to remain the largest manufacturing nation in the world,” said Murphy.

“Many Americans are rightfully concerned when our government subsidizes private companies and handpicks winners and losers in the marketplace. Right now, China’s government is doing that across the board. By manipulating its currency, every Chinese company gets an automatic discount in the global marketplace.”
 
Instead of allowing for the free exchange of its currency, China deliberately undervalues the Renminbi to give exporters an artificial price discount of twenty to forty percent when goods are sold in the United States. Since China announced in June 2010 that it would allow the Renminbi to appreciate in value, its currency has gained only 6.5% against the dollar.

“Americans are hurting and factories in my district are struggling to compete on a level playing field because the Chinese government won’t play by the rules. We can’t have free trade without fair trade,” said Rep. Murphy.  “Congress has a duty to act and help to grow jobs in America — not China. By passing this bipartisan jobs bill now, Congress and the Administration can give American employers a fair chance to grow and succeed in a global economy.”

The report indicates that over 5,600 jobs in the last decade were displaced in Mr. Murphy’s 18th congressional district, which encompasses the suburbs of Pittsburgh.