June 12, 2007
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Dodd, Shelby Announce Bipartisan Agreement Requiring Stringent New Oversight to Protect U.S. Jobs and Combat China Currency ManipulationResponding to years of inaction by the Treasury Department to identify and promptly adjust currency manipulation by our largest trading partners, Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Banking Committee, today announced that they will introduce legislation to level the playing field for American workers and businesses. China's ongoing intervention to keep the yuan undervalued has contributed to the loss of approximately three million American manufacturing jobs, the record-high U.S. trade deficit, and undermined our overall competitiveness. The Dodd-Shelby proposal, among other things, would create tough, new authority for both the Treasury Department and the Congress to act to provide a level playing field for U.S. manufacturers and workers. The legislation would also tighten the definition of currency manipulation to provide for greater clarity and to prevent ambiguity or delay in addressing the problem. No other Congressional legislation encompasses these two elements.
"The United States stands to benefit greatly from China's booming economy and growth, but the current conditions of this relationship are hurtful to the U.S., not helpful," said Dodd. "A change in our currency manipulation policy is long overdue. America's companies and workers deserve an opportunity to compete on fair terms with countries such as China, just as we provide market access and fair competition for China and other nations on our soil. We are not asking for a headstart here, just a fair race. Secretary Paulson deserves credit for working to address China's unfair currency and trade practices through the Strategic Economic Dialogue. But dialogue alone is not enough; we need action as well."
"Accordingly, I am pleased to join with Chairman Dodd in introducing legislation that tightens the definition of ?currency manipulation? and spells out a clear process for actions to be taken by Treasury in the event that a country is found to manipulate its currency. While the Strategic Economic Dialogue is significant and necessary, this legislation provides more tools to combat unfair trade practices and also provides a formal voice for the Congress. I believe that this legislation will provide the Treasury Department with the impetus necessary to produce real results, and I look forward to working with Chairman Dodd to expedite it through the committee process."
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