A decision by the US Commerce Department decision not to investigate whether China’s alleged currency manipulation constitutes an unfair export subsidy subject to countervailing duties has been described as “job-destroying” by US manufacturers.
The Fair Currency Coalition (FCC), an alliance of industry and worker organisations including textile groups, is now called for currency legislation in the House and Senate to be enacted.
“Once again Commerce has dropped the ball. Their refusal to act places the onus squarely on Congress to reverse this job-destroying decision,” said FCC executive director Charles Blum.
The group claims China has intervened to keep its currency undervalued relative to the US dollar by an estimated 35% to 40%. This illegal activity, it says, makes Chinese-produced goods and services artificially cheaper compared to their US-made counterparts.
Pending legislation includes the Currency Exchange Rate Oversight Act of 2010 – urging action if it is determined that China is a currency manipulator.
There is also The Currency Reform for Fair Trade Act, which would give US companies the ability to defend themselves against Chinese currency manipulation by placing countervailing duties equal to the Chinese manipulation on imports of certain goods from China.
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By GlobalData
