Casey calls on Obama administration to act on China currency manipulation
Published: September 7, 2010
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Following a preliminary decision last week by the U.S. Department of Commerce suggesting that it would not investigate currency manipulation by China, U.S. Sen. Bob Casey (D-Pa.) called on the Commerce Department to reconsider and to protect American manufacturing from China’s unfair trade practices.
“Given the importance of this issue to businesses in Pennsylvania and across the country, I strongly urge you to revisit this issue prior to issuing the final decision in November,” wrote Casey. “At this time of economic uncertainty, we need to utilize every tool at our disposal to protect American businesses and promote job creation. It is clear that there is a widespread negative impact on our domestic industries as a result of Chinese policies. An investigation will surely find that China’s currency manipulation has negatively impacted American manufacturing.”
In the preliminary announcement this week, the Commerce Department ruled in a case brought by aluminum manufacturers and workers that China improperly subsidies factories and that duties should be imposed to offset those subsidies. However, the Commerce Department avoided an investigation of China’s currency manipulation that gives Chinese exports an unfair advantage.
Casey is a supporter of bipartisan legislation that would vigorously address currency misalignments that unfairly and negatively impact U.S. trade. If passed, the legislation would provide less flexibility to the Treasury Department when it comes to citing countries for currency manipulation. It would also impose stiff new penalties on designated countries, including tariffs on the countries’ exports and a ban on any companies from those countries receiving U.S. government contracts.
Last month, Sen. Casey joined a bipartisan group of senators in sending a letter to President Obama calling for stronger action on behalf of U.S. businesses and workers competing against unfair trade practices conducted abroad, particularly the manipulation of currency by the Chinese government to unfairly boost exports.
Earlier this year, Sen. Casey spearheaded a bipartisan letter to Treasury Secretary Timothy Geithner calling on him to list China as a currency manipulator.
