[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 796 Introduced in Senate (IS)]
110th CONGRESS
1st Session
S. 796
To amend title VII of the Tariff Act of 1930 to provide that exchange-
rate misalignment by any foreign nation is a countervailable export
subsidy, to amend the Exchange Rates and International Economic Policy
Coordination Act of 1988 to clarify the definition of manipulation with
respect to currency, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 7, 2007
Mr. Bunning (for himself, Ms. Stabenow, Mr. Bayh, Ms. Snowe, and Mr.
Levin) introduced the following bill; which was read twice and referred
to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title VII of the Tariff Act of 1930 to provide that exchange-
rate misalignment by any foreign nation is a countervailable export
subsidy, to amend the Exchange Rates and International Economic Policy
Coordination Act of 1988 to clarify the definition of manipulation with
respect to currency, and for other purposes.
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 ``Fair Currency Act of 2007''.
TITLE I--SUBSIDIES AND PRODUCT-SPECIFIC SAFEGUARD MECHANISM
SEC. 101. FINDINGS.
Congress makes the following findings:
(1) The economy and national security of the United States
are critically dependent upon a vibrant manufacturing and
agricultural base.
(2) The good health of United States manufacturing and
agriculture requires, among other things, unfettered access to
open markets abroad and fairly traded raw materials and
products in accord with the international legal principles and
agreements of the World Trade Organization and the
International Monetary Fund.
(3) The International Monetary Fund, the G-8, and other
international organizations have repeatedly noted that
exchange-rate misalignment can cause imbalances in the
international trading system that could ultimately undercut the
stability of the system, but have taken no action to redress
such misalignments and imbalances.
(4) Since 1994, the People's Republic of China and other
countries have repeatedly intervened in currency markets and
taken measures that have significantly misaligned the values of
their currencies against the United States dollar and other
currencies.
(5) This policy by the People's Republic of China, for
example, has resulted in substantial undervaluation of the
renminbi, by up to 40 percent or more.
(6) Evidence of this undervaluation can be found in the
large and growing annual trade surpluses of the People's
Republic of China; substantially expanding foreign direct
investment in China; and the rapidly increasing aggregate
amount of foreign currency reserves that are held by the
People's Republic of China.
(7) Undervaluation by the People's Republic of China and by
other countries acts as both a subsidy for their exports and as
a nontariff barrier against imports into their territories, to
the serious detriment of United States manufacturing and
agriculture.
(8)(A) As members of both the World Trade Organization and
the International Monetary Fund, the People's Republic of China
and other countries have assumed a series of international
legal obligations to eliminate all subsidies for exports and to
facilitate international trade by fostering a monetary system
that does not tend to produce erratic disruptions, that does
not prevent effective balance-of-payments adjustment, and that
does not gain unfair competitive advantage.
(B) These obligations are most prominently set forth in--
(i) Articles VI, XV, and XVI of the GATT 1994 (as
defined in section 2(1)(B) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(1)(B));
(ii) the Agreement on Subsidies and Countervailing
Measures (as described in section 101(d)(12) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12));
and
(iii) Articles IV and VIII of the International
Monetary Fund's Articles of Agreement.
(9) Under the foregoing circumstances, it is consistent
with the international legal obligations of the People's
Republic of China and similarly situated countries and with the
corresponding international legal rights of the United States
to amend relevant United States trade laws to make explicit
that exchange-rate misalignment by any country is actionable as
a countervailable export subsidy.
SEC. 102. APPLICATION OF COUNTERVAILING DUTIES TO NONMARKET ECONOMY
COUNTRIES.
(a) In General.--Section 701(a)(1) of the Tariff Act of 1930 (19
U.S.C. 1671(a)(1)) is amended by inserting ``(including a nonmarket
economy country)'' after ``country'' each place it appears.
(b) Use of Alternate Methodologies.--Section 771(5)(E) of the
Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amended by adding at the
end the following: ``With respect to a nonmarket economy country, for
purposes of identifying and measuring a subsidy benefit described in
clause (i), (ii), (iii), or (iv), or otherwise conferred upon a
recipient, the administering authority shall use methodologies that
take into account the possibility that prevailing terms and conditions
in that country might not be available or might themselves be
inappropriate benchmarks due to market distortions. In such
circumstances, unless it is demonstrated that the nonmarket economy
country's prevailing terms and conditions practicably can be adjusted
to serve as appropriate benchmarks, the administering authority shall
use as benchmarks appropriate terms and conditions prevailing outside
the nonmarket economy country. When the party in possession of the
information necessary to identify and measure the benefit of a subsidy
does not timely and completely submit that information for the record,
the administering authority shall use for that purpose the facts
otherwise available and shall, as warranted, draw adverse
inferences.''.
(c) Adjustments For Export Price and Constructed Export Price.--
Section 772(c)(1)(C) of the Tariff Act of 1930 (19 U.S.C.
1677a(c)(1)(C)) is amended by inserting before the end comma the
following: ``, whether the subject merchandise is from a country with a
market economy, a nonmarket economy, or a combination thereof''.
(d) Effective Date.--The amendments made by subsections (a), (b),
and (c) apply with respect to a countervailing duty proceeding
initiated under subtitle A of title VII of the Tariff Act of 1930
before, on, or after the date of enactment of this Act.
(e) Antidumping Provisions Not Affected.--The amendments made by
subsections (a), (b), and (c) shall not affect the status of a country
as a nonmarket economy country for the purposes of any matter relating
to antidumping duties under the Tariff Act of 1930.
SEC. 103. CLARIFICATION TO INCLUDE EXCHANGE-RATE MISALIGNMENT AS A
COUNTERVAILABLE SUBSIDY UNDER TITLE VII OF THE TARIFF ACT
OF 1930.
(a) Amendments to Definition of Countervailable Subsidy.--
(1) Financial contribution.--Section 771(5)(D) of the
Tariff Act of 1930 (19 U.S.C. 1677(5)(D)) is amended--
(A) by redesignating clauses (i) through (iv) as
subclauses (I) through (IV), respectively;
(B) by striking ``The term'' and inserting ``(i)
The term''; and
(C) by adding at the end the following:
``(ii) Exchange-rate misalignment (as
defined in paragraph (5C)) constitutes a
financial contribution within the meaning of
subclauses (I) and (III) of clause (i).''.
(2) Benefit conferred.--Section 771(5)(E) of the Tariff Act
of 1930 (19 U.S.C. 1677(5)(E)) is amended--
(A) in clause (iii), by striking ``, and'' and
inserting a comma;
(B) in clause (iv), by striking the period at the
end and inserting ``, and''; and
(C) by inserting after clause (iv) the following
new clause:
``(v) in the case of exchange-rate
misalignment (as defined in paragraph (5C)), if
the price of exported goods in United States
dollars is less than what the price of such
goods would be without the exchange-rate
misalignment.''.
(3) Specificity.--Section 771(5A)(B) of the Tariff Act of
1930 (19 U.S.C. 1677(5A)(B)) is amended by inserting before the
period at the end the following: ``, such as exchange-rate
misalignment (as defined in paragraph (5C))''.
(b) Definition of Exchange-Rate Misalignment.--Section 771 of the
Tariff Act of 1930 (19 U.S.C. 1677) is amended by inserting after
paragraph (5B) the following new paragraph:
``(5C) Exchange-rate misalignment.--
``(A) In general.--For purposes of paragraphs (5)
and (5A), the term `exchange-rate misalignment' means
an undervaluation of a foreign currency as a result of
protracted large-scale intervention by or at the
direction of a governmental authority in the exchange
market. Such undervaluation shall be found when the
observed exchange rate for a foreign currency is below
the exchange rate that could reasonably be expected for
that foreign currency absent the intervention.
``(B) Factors.--In determining whether exchange-
rate misalignment is occurring and a benefit thereby is
conferred, the administering authority in each case--
``(i) shall consider the exporting
country's--
``(I) bilateral balance-of-trade
surplus or deficit with the United
States;
``(II) balance-of-trade surplus or
deficit with its other trading partners
individually and in the aggregate;
``(III) foreign direct investment
in its territory;
``(IV) currency-specific and
aggregate amounts of foreign currency
reserves; and
``(V) mechanisms employed to
maintain its currency at an undervalued
exchange rate relative to another
currency and, particularly, the nature,
duration, and monetary expenditures of
those mechanisms;
``(ii) may consider such other economic
factors as are relevant; and
``(iii) shall measure the trade surpluses
or deficits described in subclauses (I) and
(II) of clause (i) with reference to the trade
data reported by the United States and the
other trading partners of the exporting
country, unless such trade data are not
available or are demonstrably inaccurate, in
which case the exporting country's trade data
may be relied upon if shown to be sufficiently
accurate and trustworthy.
``(C) Computation.--In quantifying exchange-rate
misalignment, the administering authority shall develop
and apply an objective methodology that is consistent
with widely recognized macroeconomic theory and shall
rely upon governmentally published and other publicly
available and reliable data.
``(D) Type of economy.--An authority found to be
engaged in exchange-rate misalignment may have either a
market economy or a nonmarket economy or a combination
thereof.''.
(c) Effective Date.--The amendments made by this section apply with
respect to a countervailing duty proceeding initiated under subtitle A
of title VII of the Tariff Act of 1930 before, on, or after the date of
enactment of this Act.
SEC. 104. CLARIFICATION TO INCLUDE EXCHANGE-RATE MISALIGNMENT BY THE
PEOPLE'S REPUBLIC OF CHINA AS A CONDITION TO BE
CONSIDERED WITH RESPECT TO MARKET DISRUPTION UNDER
CHAPTER 2 OF TITLE IV OF THE TRADE ACT OF 1974.
(a) Market Disruption.--
(1) In general.--Section 421(c) of the Trade Act of 1974
(19 U.S.C. 2451(c)) is amended by adding at the end the
following new paragraphs:
``(3) For purposes of this section, the term `under such
conditions' includes exchange-rate misalignment (as defined in
paragraph (4)).
``(4)(A) For purposes of this section, the term `exchange-
rate misalignment' means an undervaluation of the renminbi as a
result of protracted large-scale intervention by or at the
direction of the Government of the People's Republic of China
in the exchange market. Such undervaluation shall be found when
the observed exchange rate for the renminbi is below the
exchange rate that could reasonably be expected for the
renminbi absent the intervention.
``(B) In determining whether exchange-rate misalignment is
occurring, the Commission in each case--
``(i) shall consider the People's Republic of
China's--
``(I) bilateral balance-of-trade surplus or
deficit with the United States;
``(II) balance-of-trade surplus or deficit
with its other trading partners individually
and in the aggregate;
``(III) foreign-direct investment in its
territory;
``(IV) currency-specific and aggregate
amounts of foreign currency reserves; and
``(V) mechanisms employed to maintain its
currency at an undervalued exchange rate
relative to another currency and, particularly,
the nature, duration, and monetary expenditures
of those mechanisms;
``(ii) may consider such other economic factors as
are relevant; and
``(iii) shall measure the trade surpluses or
deficits described in subclauses (I) and (II) of clause
(i) with reference to the trade data reported by the
United States and the other trading partners of the
People's Republic of China, unless such trade data are
not available or are demonstrably inaccurate, in which
case the trade data of the People's Republic of China
may be relied upon if shown to be sufficiently accurate
and trustworthy.
``(C) Computation.--In quantifying exchange-rate
misalignment, the Commission shall develop and apply an
objective methodology that is consistent with widely recognized
macroeconomic theory and shall rely upon governmentally
published and other publicly available and reliable data.''.
(b) Critical Circumstances.--Section 421(i)(1) of the Trade Act of
1974 (19 U.S.C. 2451(i)(1)) is amended by inserting after subparagraph
(B) the following:
``If the petition alleges and reasonably documents that exchange-rate
misalignment is occurring, such exchange-rate misalignment shall be
considered as a factor weighing in favor of affirmative findings in
subparagraphs (A) and (B).''.
(c) Standard for Presidential Action.--Section 421(k)(2) of the
Trade Act of 1974 (19 U.S.C. 2451(k)(2)) is amended by adding at the
end the following new sentence: ``If the Commission makes an
affirmative determination that exchange-rate misalignment is occurring,
the President shall consider such exchange-rate misalignment as a
factor weighing in favor of providing import relief in accordance with
subsection (a).''.
(d) Modifications of Relief.--Section 421(n)(2) of the Trade Act of
1974 (19 U.S.C. 2451(n)(2)) is amended by adding at the end the
following new sentence: ``If the Commission affirmatively determines
that exchange-rate misalignment is occurring, the Commission and the
President shall consider such exchange-rate misalignment as a factor
weighing in favor of finding that continuation of relief is necessary
to prevent or remedy the market disruption at issue.''.
(e) Extension of Action.--Section 421(o) of the Trade Act of 1974
(19 U.S.C. 2451(o)) is amended--
(1) in paragraph (1), by adding at the end the following
new sentence: ``If the Commission makes an affirmative
determination that exchange-rate misalignment is occurring, the
Commission shall consider such exchange-rate misalignment as a
factor weighing in favor of finding that an extension of the
period of relief is necessary to prevent or remedy the market
disruption at issue.''; and
(2) in paragraph (4), by adding at the end the following
new sentence: ``If the Commission makes an affirmative
determination that exchange-rate misalignment is occurring, the
President shall consider such exchange-rate misalignment as a
factor weighing in favor of finding that an extension of the
period of relief is necessary to prevent or remedy the market
disruption at issue.''.
(f) Effective Date.--The amendments made by this section apply with
respect to an investigation initiated under chapter 2 of title IV of
the Trade Act of 1974 before, on, or after the date of the enactment of
this Act.
SEC. 105. PROHIBITION ON PROCUREMENT BY THE DEPARTMENT OF DEFENSE OF
CERTAIN DEFENSE ARTICLES IMPORTED FROM THE PEOPLE'S
REPUBLIC OF CHINA.
(a) Copy of Petition, Request, or Resolution To Be Transmitted to
the Secretary of Defense.--Section 421(b)(4) of the Trade Act of 1974
(19 U.S.C. 2451(b)(4)) is amended by inserting ``, the Secretary of
Defense'' after ``, the Trade Representative''.
(b) Determination of Secretary of Defense.--Section 421(b) of the
Trade Act of 1974 (19 U.S.C. 2451(b)) is amended by adding at the end
the following new paragraph:
``(6) Not later than 15 days after the date on which an
investigation is initiated under this subsection, the Secretary
of Defense shall submit to the Commission a report in writing
which contains the determination of the Secretary as to whether
or not the articles of the People's Republic of China that are
the subject of the investigation are like or directly
competitive with articles produced by a domestic industry that
are critical to the defense industrial base of the United
States.''.
(c) Prohibition on Procurement by the Department of Defense of
Certain Defense Articles.--
(1) Prohibition.--If the United States International Trade
Commission makes an affirmative determination under section
421(b) of the Trade Act of 1974 (19 U.S.C. 2451(b)), or a
determination which the President or the United States Trade
Representative may consider as affirmative under section 421(e)
of such Act (19 U.S.C. 2451(e)), with respect to articles of
the People's Republic of China that the Secretary of Defense
has determined are like or directly competitive with articles
produced by a domestic industry that are critical to the
defense industrial base of the United States, the Secretary of
Defense may not procure, directly or indirectly, such articles
of the People's Republic of China.
(2) Waiver.--The President may waive the application of the
prohibition contained in paragraph (1) on a case-by-case basis
if the President determines and certifies to Congress that it
is in the national security interests of the United States to
do so.
SEC. 106. APPLICATION TO GOODS FROM CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade Agreement
and section 408 of the North American Free Trade Agreement
Implementation Act of 1993 (19 U.S.C. 3438), the amendments made by
sections 102, 103, and 206 of this Act shall apply to goods from Canada
and Mexico.
TITLE II--INTERNATIONAL MONETARY AND FINANCIAL POLICY
SEC. 201. FINDINGS.
Congress makes the following findings:
(1) Since the Exchange Rates and International Economic
Policy Coordination Act of 1988 (22 U.S.C. 5302(3)) was enacted
the global economy has changed dramatically, with increased
capital account openness, a sharp increase in the flow of funds
internationally, and an ever growing number of emerging market
economies becoming systemically important to the global flow of
goods, services, and capital. In addition, practices such as
the maintenance of multiple currency regimes have become rare.
(2) Exchange rates among major trading nations are
occasionally manipulated or fundamentally misaligned due to
direct or indirect governmental intervention in the exchange
market.
(3) A major focus of national economic policy should be a
market-driven exchange rate for the United States dollar at a
level consistent with a sustainable balance in the United
States current account.
(4) While some degree of surpluses and deficits in payments
balances may be expected, particularly in response to
increasing economic globalization, large and growing imbalances
raise concerns of possible disruption to financial markets. In
part, such imbalances often reflect exchange rate policies that
foster fundamental misalignment of currencies.
(5) Currencies in fundamental misalignment can seriously
impair the ability of international markets to adjust
appropriately to global capital and trade flows, distorting
trade flows and causing economic harm to the United States.
(6) The effects of a fundamentally misaligned currency may
be so harmful that it is essential to correct the fundamental
misalignment without regard to the purpose of any policy that
contributed to the misalignment.
(7) In the interests of facilitating the exchange of goods,
services, and capital among countries, sustaining sound
economic growth, and fostering financial and economic
stability, Article IV of the International Monetary Fund's
Articles of Agreement obligates each member of the
International Monetary Fund to avoid manipulating exchange
rates in order to prevent effective balance of payments
adjustments or to gain an unfair competitive advantage over
other members.
(8) The failure of a government to acknowledge a
fundamental misalignment of its currency or to take timely and
effective steps to correct such a fundamental misalignment,
either through inaction or mere token action, is a form of
exchange rate manipulation and is inconsistent with that
government's obligations under Article IV of the International
Monetary Fund's Articles of Agreement.
SEC. 202. AMENDMENTS TO DEFINITIONS.
Section 3006 of the Exchange Rates and International Economic
Policy Coordination Act of 1988 (22 U.S.C. 5306) is amended by adding
at the end the following:
``(3) Fundamental misalignment.--The term `fundamental
misalignment' means a material sustained disparity between the
observed levels of an effective exchange rate for a currency
and the corresponding levels of an effective exchange rate for
that currency that would be consistent with fundamental
macroeconomic conditions based on a generally accepted economic
rationale.
``(4) Effective exchange rate.--The term `effective
exchange rate' means a weighted average of bilateral exchange
rates, expressed in either nominal or real terms.
``(5) Generally accepted economic rationale.--The term
`generally accepted economic rationale' means an explanation
drawn on widely recognized macroeconomic theory for which there
is a significant degree of empirical support.''.
SEC. 203. BILATERAL NEGOTIATIONS.
Section 3004(b) of the Exchange Rates and International Economic
Policy Coordination Act of 1988 (22 U.S.C. 5304(b)) is amended to read
as follows:
``(b) Bilateral Negotiations.--
``(1) In general.--The Secretary of the Treasury shall
analyze on an annual basis the exchange rate policies of
foreign countries, in consultation with the International
Monetary Fund, and consider whether countries--
``(A) manipulate the rate of exchange between their
currency and the United States dollar for purposes of
preventing effective balance of payments adjustments or
gaining unfair competitive advantage in international
trade; or
``(B) have a currency that is in fundamental
misalignment.
``(2) Affirmative determination.--If the Secretary
considers that such manipulation or fundamental misalignment is
occurring with respect to countries that--
``(A) have material global current account
surpluses; or
``(B) have significant bilateral trade surpluses
with the United States,
the Secretary of the Treasury shall take action to initiate
negotiations with such foreign countries on an expedited basis,
in the International Monetary Fund or bilaterally, for the
purpose of ensuring that such countries regularly and promptly
adjust the rate of exchange between their currencies and the
United States dollar to permit effective balance of payments
adjustments and to eliminate the unfair advantage.
``(3) Exception.--The Secretary shall not be required to
initiate negotiations if the Secretary determines that such
negotiations would have a serious detrimental impact on vital
national economic and security interests. The Secretary shall
inform the chairman and the ranking minority member of the
Committee on Banking, Housing, and Urban Affairs of the Senate
and of the Committee on Financial Services of the House of
Representatives of the Secretary's determination.''.
SEC. 204. REPORTING REQUIREMENTS.
Section 3005 of the Exchange Rates and International Economic
Policy Coordination Act of 1988 (22 U.S.C. 5305) is amended to read as
follows:
``SEC. 3005. REPORTING REQUIREMENTS.
``(a) Reports Required.--
``(1) In general.--The Secretary, after consulting with the
Chairman of the Board, shall submit to Congress, on or before
October 15 of each year, a written report on international
economic policy and currency exchange rates.
``(2) Interim report.--The Secretary, after consulting with
the Chairman of the Board, shall submit to Congress, on or
before April 15 of each year, a written report on interim
developments with respect to international economic policy and
currency exchange rates.
``(b) Contents of Reports.--Each report submitted under subsection
(a) shall contain--
``(1) an analysis of currency market developments and the
relationship between the United States dollar and the
currencies of major economies and United States trading
partners;
``(2) a review of the economic and financial policies of
major economies and United States trading partners and an
evaluation of the impact that such policies have on currency
exchange rates;
``(3) a description of any currency intervention by the
United States or other major economies or United States trading
partners, or other actions undertaken to adjust the actual
exchange rate of the dollar;
``(4) an evaluation of the factors that underlie conditions
in the currency markets, including--
``(A) monetary and financial conditions;
``(B) foreign exchange reserve accumulation;
``(C) macroeconomic trends;
``(D) trends in current and financial account
balances;
``(E) the size and composition of, and changes in,
international capital flows;
``(F) the impact of the external sector on economic
changes;
``(G) the size and growth of external indebtedness;
``(H) trends in the net level of international
investment; and
``(I) capital controls, trade, and exchange
restrictions;
``(5) a list of currencies of the major economies or
economic areas that are manipulated or in fundamental
misalignment and a description of any economic models or
methodologies used to establish the list;
``(6) a description of any reason or circumstance that
accounts for why each currency identified under paragraph (5)
is manipulated or in fundamental misalignment based on a
generally accepted economic rationale;
``(7) a list of each currency identified under paragraph
(5) for which the manipulation or fundamental misalignment
causes, or contributes to, a material adverse impact on the
economy of the United States, including a description of any
reason or circumstance that explains why the manipulation or
fundamental misalignment is not accounted for under paragraph
(6);
``(8) the results of any prior consultations conducted or
other steps taken; and
``(9)(A) a list of each occasion during the reporting
period when the issue of exchange-rate misalignment was raised
in a countervailing duty proceeding under subtitle A of title
VII of the Tariff Act of 1930 or in an investigation under
section 421 of the Trade Act of 1974;
``(B) a summary in each such instance of whether or not
exchange-rate misalignment was found and the reasoning and data
underlying that finding; and
``(C) a discussion regarding each affirmative finding of
exchange-rate misalignment to consider the circumstances
underlying that exchange-rate misalignment and what action
appropriately has been or might be taken by the Secretary apart
from and in addition to import relief to correct the exchange-
rate misalignment.
``(c) Development of Reports.--The Secretary shall consult with the
Chairman of the Board with respect to the preparation of each report
required under subsection (a). Any comments provided by the Chairman of
the Board shall be submitted to the Secretary not later than the date
that is 15 days before the date each report is due under subsection
(a). The Secretary shall submit the report after taking into account
all comments received.''.
SEC. 205. INTERNATIONAL FINANCIAL INSTITUTION GOVERNANCE ARRANGEMENTS.
(a) Initial Review.--Notwithstanding any other provision of law,
before the United States approves a proposed change in the governance
arrangement of any international financial institution, as defined in
section 1701(c)(2) of the International Financial Institutions Act (22
U.S.C. 262r(c)(2)), the Secretary of the Treasury shall determine
whether any member of the international financial institution that
would benefit from the proposed change, in the form of increased voting
shares or representation, has a currency that is manipulated or in
fundamental misalignment, and if so, whether the manipulation or
fundamental misalignment causes or contributes to a material adverse
impact on the economy of the United States. The determination shall be
reported to Congress.
(b) Subsequent Action.--The United States shall oppose any proposed
change in the governance arrangement of any international financial
institution (as defined in subsection (a)) if the Secretary renders an
affirmative determination pursuant to subsection (a).
(c) Further Action.--The United States shall continue to oppose any
proposed change in the governance arrangement of an international
financial institution, pursuant to subsection (b), until the Secretary
determines and reports to Congress that the currency of each member of
the international financial institution that would benefit from the
proposed change, in the form of increased voting shares or
representation, is neither manipulated nor in fundamental misalignment.
SEC. 206. NONMARKET ECONOMY STATUS.
Paragraph (18)(B)(vi) of section 771 of the Tariff Act of 1930 (19
U.S.C. 1677(18)(B)(vi)) is amended by inserting before the period at
the end the following: ``, including whether the currency of the
foreign country has been identified pursuant to section 3005(b)(7) of
the Exchange Rates and International Economic Policy Coordination Act
of 1988 (22 U.S.C. 5305(b)(7)) in any written report required by such
section 3005(b)(7) during the 24-month period immediately preceding the
month during which the administering authority seeks to revoke a
determination that such foreign country is a nonmarket economy
country''.
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