The American Iron and Steel Institute (AISI) Wednesday announced that President and CEO Thomas J. Gibson sent a letter to House Democratic leaders expressing strong support for a vote on HR 2378, the Currency Reform for Fair Trade Act, before Congress adjourns in October. The bi-partisan legislation introduced by Rep. Tim Ryan (D-Ohio) and Rep. Tim Murphy (R-Pennsylvania) will provide US manufacturers with an important trade remedy tool to address the injury caused by foreign government currency manipulation.
"While there are a number of factors that have contributed to the massive job losses the manufacturing sector has faced over the last decade, China's currency undervaluation is certainly one major contributing factor that cannot be overlooked," said Gibson in the letter. "Currency undervaluation distorts trade by acting as a subsidy that artificially reduces prices on exports from the country undervaluing its currency, and as an added tariff on imports into that country. This undermines the Administration's goal of doubling U.S. exports, stimulating the economy and creating jobs."
US Treasury Secretary Timothy Geithner testified before the House Ways and Means committee on September 16, and acknowledged that China's undervalued currency makes Chinese exports cheaper, and in return, places US businesses and manufacturers at a significant disadvantage. Due to a perceived lack of action by the Executive Branch, the AISI believes Congress must step in and act. "If Congress is serious about moving legislation that will help the manufacturing sector, create jobs, and not add to the federal deficit, this is a bill that should be taken up and passed immediately," Gibson said. The letter also cites a Fair Currency Coalition petition that has been signed by almost 300 companies, trade associations and labor groups requesting action on legislation to address currency manipulation.