Pelosi Statement on Announcement by Ways & Means Committee of Markup of Currency Reform for Fair Trade Act

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Sep 22, 2010, 04:07 ET

WASHINGTON, Sept. 22 /PRNewswire-USNewswire/ -- Speaker Nancy Pelosi released the following statement on the announcement that the Ways & Means Committee has scheduled a markup on Friday of H.R. 2378, The Currency Reform for Fair Trade Act sponsored by Rep. Tim Ryan (D-OH) and Rep. Tim Murphy (R-PA). The bipartisan legislation currently has 150 co-sponsors, including 45 Republican members. On September 15, one hundred House members sent the attached letter to the Democratic and Republican Leadership requesting that the bill come to the House floor for a vote.

"The House Ways & Means Committee announced today that it will consider the bipartisan Currency Reform for Fair Trade – a key part of our 'Make It In America' agenda -- that would address currency manipulation by foreign governments, including the Chinese government.

"Members of Congress, U.S. businesses, and workers have expressed concern that the Chinese government has intervened in currency markets to cause its currency to be undervalued by as much as 40 percent. This unfair trade practice translates into a significant subsidy, artificially making U.S. products more expensive, and jeopardizing efforts to create and preserve manufacturing jobs in America.

"According to testimony at the committee hearings last week, China's currency manipulation has reduced our exports, caused the loss of U.S. manufacturing jobs, and significantly contributed to our large trade deficit with China. If China allowed its currency to respond to market forces, it could create a million U.S. manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no cost to the U.S. treasury.

"For years, the Bush Administration, the Obama Administration, and Members of Congress have tried to persuade the Chinese government to allow its currency to respond to market forces. No significant progress has been made. It is time for Congress to pass legislation that will give the Administration leverage in its bilateral and multilateral negotiations with the Chinese government – so that U.S. businesses and workers have a more level playing field in world trade. The legislation must and will be consistent with our World Trade Organization obligations."

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SOURCE Office of the Speaker of the House