Following figures Tuesday that show a 34 percent jump over last month's US-China trade deficit, US Senator Bob Casey (D-PA) along with Senators Sherrod Brown (D-OH), Jeff Sessions (R-AL), Chuck Schumer (D-NY), Lindsey Graham (R-SC), Debbie Stabenow (D-MI), Richard Burr (R-NC), and Susan Collins (R-ME), introduced the Currency Exchange Rate Oversight Reform Act of 2013 Wednesday. The bill would use US trade law to counter the economic harm to US manufacturers caused by currency manipulation, and provide consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment, according to a press release on Senator Casey's webpage. The senators' introduction comes in advance of upcoming talks between President Obama and Chinese President Xi.
The American Iron and Steel Institute (AISI) commended the introduction of a Senate bill to address the unfair trade practice of currency manipulation that is injuring US manufacturers. "The Currency Exchange Rate Oversight Reform Act of 2013...allows for US businesses to utilize existing trade remedy laws to address the unfair trade advantage given to imports that benefit from currency manipulation; and, is identical to the legislation passed by the Senate in 2011," commented AISI president and CEO Thomas Gibson.
On Thursday, the Metals Service Center Institute (MSCI) also issued a statement in support of the new bill. "This legislation is an important step in holding countries accountable for illegal trade practices," said MSCI president and CEO Bob Weidner. "For far too long, American-made goods have been disadvantaged in the global market because countries like China manipulate their currency to gain an unfair advantage. The US metal industry and its workers deserve to compete on a level playing field."