New US trade legislation targets Chinese currency manipulation

New international trade legislation backed by US manufacturers was introduced in Congress Wednesday by a bipartisan group of Senators and Congressmen.

The Currency Reform for Fair Trade Act (CRFTA) of 2009 builds upon earlier proposals made in the 109th and 110th Congresses, and US manufacturers, including steelmakers, say it would establish an effective trade remedy provision to neutralize currency undervaluation.

The American Iron and Steel Institute (AISI) is among the vocal supporters of the legislation, introduced by Senators Debbie Stabenow (D-MI), Sherrod Brown (D-OH) and Jim Bunning (R-KY), and Congressmen Tim Ryan (D-OH) and Tim Murphy (R-PA). AISI president and CEO Thomas J. Gibson said the Act represents “a critical step toward leveling the playing field for American manufacturers.”

“Currency manipulation by foreign governments has contributed to persistent and serious global structural imbalances and, in turn, to the current world economic crisis. It has led to enormous US manufacturing job losses and provides a huge unfair -- and artificial – competitive advantage,” Gibson continued.

AISI said that like previous bills, this bill would target nations, such as China, that manipulate their currency values to receive export and manufacturing advantages. However, the CRFTA departs from previous bills by focusing only on the trade aspect of currency misalignment. More information about the legislation can be found at AISI's website, www.steel.org.