This morning, the U.S. Department of the Treasury released its “Semi-Annual Report to Congress on International Economic and Exchange Rate Policies.” The report did NOT cite China as a currency manipulator.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM):
“We’re deeply disappointed by the Treasury Department’s decision not to name China as a currency manipulator. America’s businesses and their workers depend on a level playing field to successfully compete, and they can’t halt unfair trade practices on their own.
“I’m perplexed by this decision because it runs counter to the goal of reshoring jobs from China. Currency manipulation is an outsourcing incentive.
“In the absence of leadership from the Administration, it’s time for Congress to pass legislation to deter China’s currency manipulation.”
The Congressional Picture:
Last fall, the Senate passed S.1619, the Currency Exchange Rate Oversight Reform Act of 2011, with a bipartisan vote of 63-35.
Currently, the House is considering H.R.639, the Currency Reform for Fair Trade Act, which has 233 cosponsors, including 65 Republicans. (In 2010, the House passed a similar bill, H.R.2378, the Currency Reform for Fair Trade Act, by a strong, bipartisan vote of 348-79, including 99 Republicans.)