SSINA Voices Support for Trade Remedy to Offset Injurious Currency Manipulation

WASHINGTON, March 24 /PRNewswire-USNewswire/ -- In a written statement submitted to the Committee on Ways and Means of the U.S. House of Representatives, the Specialty Steel Industry of North America ("SSINA") today encouraged passage of legislation to address injury caused to U.S. domestic industry by imports from China and other countries with fundamentally undervalued currencies.  The full committee hearing, to be held on March 24, 2010, has been scheduled by Ways and Means Committee Chairman Sander M. Levin (D-MI) to consider the impact of China's exchange rate policy on the U.S. and global economic recoveries, including U.S. job creation, and what steps might be taken to address the issue.

In its written statement, SSINA advocates passage of H.R. 2378, The Currency Reform for Fair Trade Act, which is a bipartisan bill that would treat undervalued fundamental misalignment of a currency as a prohibited export subsidy and would impose countervailing duties on injurious imports to offset the unfair advantage enjoyed by exporters from any country that engages in protracted, large-scale undervaluation of its currency.

Dr. Sunil Widge, SSINA's Chairman and Chief Technology Officer Emeritus of Carpenter Technology Corporation, said, "A critical element in adding jobs in the United States, sustaining an economic recovery, and avoiding a recessionary relapse is revaluation of China's renminbi.  The extent of the renminbi's undervaluation is generally estimated by economists as being in the range of 20 percent – 50 percent or more.  That is a formidable commercial disadvantage for U.S. companies to overcome.  It is extremely difficult to envision, for example, how the United States can possibly implement President Obama's plan for the United States to double exports in the next five years without meaningful revaluation of the renminbi."

Carl Moulton, SSINA's Vice Chairman and Vice President, International for Allegheny Technologies Incorporated, added, "The United States has worked over the last five or six years especially to persuade China that rigid exchange rates lead to distortions and instability in global trade and investment, and this prognosis unfortunately is proving to be accurate.  Even so, China apparently is not prepared to allow its currency to be valued in accordance with market fundamentals, and multilateral efforts to this juncture have likewise been rebuffed by the Chinese government.  Under these circumstances, H.R. 2378 is a reasonable approach for the United States to take.  SSINA believes that this measure is consistent with the international legal obligations of the United States at the International Monetary Fund and at the World Trade Organization and would appropriately and firmly convey that any country's fundamental misalignment and undervaluation of its currency will not be tolerated."

SSINA's General Counsel, David A. Hartquist, commented, "We are very pleased that Chairman Levin has called for this timely hearing on a subject of great importance and concern to SSINA's members.  Competitive currency depreciation by China and other countries is a destabilizing practice that is causing serious imbalances in international trade and investment to the detriment of the U.S. economy and national security."

About Specialty Steel Industry of North America

Specialty Steel Industry of North America (SSINA) is a Washington, DC-based trade association representing virtually all continental specialty metals producers, which include high technology, high value stainless and other specialty alloy products.

SSINA member companies include: ATI Allegheny Ludlum, Pittsburgh, PA, and ATI Allvac, Monroe, NC (both Allegheny Technologies companies); Carpenter Technology Corporation, Reading, PA; Electralloy, Oil City, PA; Latrobe Specialty Steel Company, Latrobe, PA; North American Stainless, Ghent, KY; Outokumpu Stainless, Inc., Schaumburg, IL; Universal Stainless and Alloy Products, Bridgeville, PA; and Valbruna Slater Stainless Inc., Fort Wayne, IN.

SOURCE Specialty Steel Industry of North America

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED