[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4986 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4986

 To require the Secretary of the Treasury to analyze and report on the 
   exchange rate policies of the People's Republic of China, and to 
  require that measures consistent with the obligations of the United 
   States under the World Trade Organization be taken to offset any 
disadvantage to United States producers resulting from China's exchange 
                             rate policies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2004

    Mr. Rogers of Michigan introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of the Treasury to analyze and report on the 
   exchange rate policies of the People's Republic of China, and to 
  require that measures consistent with the obligations of the United 
   States under the World Trade Organization be taken to offset any 
disadvantage to United States producers resulting from China's exchange 
                             rate policies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Currency Rate Adjustment and Trade 
Enforcement Act''.

SEC. 2. ANALYSIS OF AND REPORT ON EXCHANGE RATE POLICIES OF CHINA.

    (a) Analysis.--
            (1) In general.--The Secretary of the Treasury shall, upon 
        the enactment of this Act and annually thereafter, analyze the 
        exchange rate policies of the People's Republic of China in 
        order to determine whether that country maintains the rate of 
        exchange between the currency of that country and the United 
        States dollar in a manner that interferes with effective 
        balance of payments adjustments or confers a competitive 
        advantage in international trade that would not exist if the 
        currency value were set by market forces.
            (2) Global balance of trade.--In conducting the analysis 
        under paragraph (1), the Secretary of the Treasury shall 
        determine the global balance of trade of the People's Republic 
        of China and, in making that determination, compare the import 
        and export data for China by country, as reported by the 
        Chinese Government, with the export and import data for China, 
        as reported by the government of each country that is a trading 
        partner of China. In making that determination, the Secretary 
        should take into account reexports to and from China through 
        Hong Kong.
    (b) Computation of Rate of Undervaluation.--If the Secretary of the 
Treasury makes an affirmative determination under subsection (a)(1), 
the Secretary shall compute the rate of undervaluation against the 
dollar in the form of a percentage.
    (c) Reports to Congress.--The Secretary of the Treasury shall 
submit to the Committee on Ways and Means and the Committee on Energy 
and Commerce of the House of Representatives and to the Committee on 
Finance of the Senate a report on the Secretary's analysis and findings 
under subsection (a), and any rate computed under subsection (b). The 
report shall be submitted--
            (1) with respect to the analysis conducted upon the 
        enactment of this Act, not later than 60 days after the date of 
        the enactment of this Act; and
            (2) with respect to each subsequent analysis, at the end of 
        each 1-year period thereafter.
    (d) Relief.--In any case in which a report of the Secretary of the 
Treasury under subsection (c) includes a rate of undervaluation 
computed under subsection (b), the President shall seek authorization 
in the World Trade Organization through expedited dispute settlement--
            (1) to offset the subsidy inherent in the undervalued 
        currency by the application of across-the-board equivalent 
        tariffs, on the basis of the rate of undervaluation computed 
        under subsection (b), on the importation into the United States 
        of all products of the People's Republic of China; and
            (2) to take measures to offset the disadvantage resulting 
        from such undervaluation to exports to the People's Republic of 
        China of goods and services of the United States.
    (e) Modifications.--To the extent consistent with the obligations 
of the United States under the World Trade Organization--
            (1) any measures imposed under subsection (d) shall be 
        modified annually to the extent necessary to comply with the 
        most recent report of the Secretary of the Treasury under 
        subsection (c); and
            (2) the Secretary of the Treasury may modify any measures 
        imposed under subsection (d) or modifications thereto under 
        paragraph (1) 30 days after notifying the Congress of a 
        substantial change in the degree of currency undervaluation by 
        the People's Republic of China.
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