1.This Act may be cited as the
Fair Currency Act of
2007
.
<enum>I</enum><header display-inline="yes-display-inline">Subsidies and Product-Specific Safeguard
Mechanism</header>
<section commented="no" display-inline="no-display-inline" id="H59D5870D0AA340FE81DE5CE9295C8799" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3999AE06C9E543B39826B5502100B9E1"><enum>(1)</enum><text display-inline="yes-display-inline">The economy and national security of the
United States are critically dependent upon a vibrant manufacturing and
agricultural base.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBD94389DF9CA4D17AFBAEEBEF3021C54"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H776D28BA16204689B4ACE417848600C8"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6ACA77F7B6B43E49089E327C933D0AB"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43B3CB1192F742E3BDF79C29C6EEEE00"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38BD726B0E1E4269883800ECBD7673D0"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EB438E6D59F4E69B79C345621FAFE8E"><enum>(7)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04D221D22A8B429E833C0946AC2E42A5"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H70B756EEAF264DF3B31BA72401FB0662"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A1D6BA4E4864CC89388A6BC667CA022" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">These obligations are most prominently set
forth in—</text>
<clause commented="no" display-inline="no-display-inline" id="HA6785B3107C04917916277E328098B8B"><enum>(i)</enum><text display-inline="yes-display-inline">Articles VI, XV, and XVI of the GATT 1994
(as defined in section 2(1)(B) of the Uruguay Round Agreements Act
(<external-xref legal-doc="usc" parsable-cite="usc/19/3501">19 U.S.C.
3501(1)(B)</external-xref>);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H331DE1F80E8C44DA9CDBDAE6D5DC011C"><enum>(ii)</enum><text display-inline="yes-display-inline">the Agreement on Subsidies and
Countervailing Measures (as described in section 101(d)(12) of the Uruguay
Round Agreements Act (<external-xref legal-doc="usc" parsable-cite="usc/19/3511">19 U.S.C. 3511(d)(12)</external-xref>); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H96CF3CEFF47A4FF8A106B5F35D45174D"><enum>(iii)</enum><text display-inline="yes-display-inline">Articles IV and VIII of the International
Monetary Fund’s Articles of Agreement.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD82BF8A4421A4EEAA7A7E228BFFC8ECD"><enum>(9)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H26651A8EF73946C5B3DBC06C806FC7F3" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Application of countervailing duties to
nonmarket economy countries</header>
<subsection commented="no" display-inline="no-display-inline" id="H4AA60A082A8E4129A7221C22F1C0E75C"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 701(a)(1) of the Tariff Act of 1930
(19 U.S.C. 1671(a)(1)) is amended by inserting <quote>(including a nonmarket
economy country)</quote> after <quote>country</quote> each place it
appears.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H63587EC3EB504A43AAA610D4FAE3BC15"><enum>(b)</enum><header display-inline="yes-display-inline">Use of Alternate
Methodologies</header><text display-inline="yes-display-inline">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: <quote>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.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE7592811041345C784E8E76F3CBC0000"><enum>(c)</enum><header display-inline="yes-display-inline">Adjustments For Export Price and
Constructed Export Price</header><text display-inline="yes-display-inline">Section 772(c)(1)(C) of the Tariff Act of
1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1677a">19 U.S.C.
1677a(c)(1)(C)</external-xref>) is amended by inserting before the end comma
the following: <quote>, whether the subject merchandise is from a country with
a market economy, a nonmarket economy, or a combination thereof</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD2FD5B3F83EC43F88EF6A7896C3F2453"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC0F4C9B990DC4A7C8B03FC873197003F"><enum>(e)</enum><header display-inline="yes-display-inline">Antidumping Provisions Not
Affected</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H8438A5FC4A264286B140239F3CCE30DB" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Clarification to include exchange-rate
misalignment as a countervailable subsidy under title VII of the Tariff Act of
1930</header>
<subsection commented="no" display-inline="no-display-inline" id="H4015A1114FE7408FA4D3C224AF31A5BD"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to Definition of Countervailable
Subsidy</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5E282E82B8B94634BC2E76F77FAEB5D6"><enum>(1)</enum><header display-inline="yes-display-inline">Financial contribution</header><text display-inline="yes-display-inline">Section 771(5)(D) of the Tariff Act of 1930
(19 U.S.C. 1677(5)(D)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F47767EFA9F4E9387785B5F473E6EE3"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating clauses (i) through (iv)
as subclauses (I) through (IV), respectively;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3E741BF5F47E45DE92ACAEDE83D8B4C"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>The term</quote> and
inserting <quote>(i) The term</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFFFBF9D83DE94DD7A7C2E42FF68D0000"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H86BD41048DDA4A1598F4D9BAB58900C7" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H34F5907C30D14111AE7E6DC25102DD94"><enum>(ii)</enum><text display-inline="yes-display-inline">Exchange-rate misalignment (as defined in
paragraph (5C)) constitutes a financial contribution within the meaning of
subclauses (I) and (III) of clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5563A2906554F57AAFAFB2E07564F19"><enum>(2)</enum><header display-inline="yes-display-inline">Benefit conferred</header><text display-inline="yes-display-inline">Section 771(5)(E) of the Tariff Act of 1930
(19 U.S.C. 1677(5)(E)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H201CA654C4D54F8C8544A8C0088F515"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (iii), by striking <quote>,
and</quote> and inserting a comma;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4FD9A5318E6049B0BC06CA50FFB7776B"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iv), by striking the period at
the end and inserting <quote>, and</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H292E46D3E660471382C136C9F05D3BCD"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after clause (iv) the
following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HF30B15B4759F424D8D3BFFE516E5B09E" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H904DD51D64BB4170BBE299E94F9C35AD"><enum>(v)</enum><text display-inline="yes-display-inline">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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8515D096F9804A0F839978F9D2001DA"><enum>(3)</enum><header display-inline="yes-display-inline">Specificity</header><text display-inline="yes-display-inline">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: <quote>, such as exchange-rate misalignment (as defined in
paragraph (5C))</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H373F65A65DC142F9B78DB692FC93EEC6"><enum>(b)</enum><header display-inline="yes-display-inline">Definition of Exchange-Rate
Misalignment</header><text display-inline="yes-display-inline">Section 771 of
the Tariff Act of 1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1677">19 U.S.C. 1677</external-xref>) is amended by
inserting after paragraph (5B) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF6AF87EF6EDA437E81F135FCA7490700" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H015985CE60E3438EA70856DD06FC7F88"><enum>(5C)</enum><header display-inline="yes-display-inline">Exchange-rate misalignment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8407DDD8E73542CCAE92DCEB30110000"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of paragraphs (5) and (5A),
the term <quote>exchange-rate misalignment</quote> 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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0DF69B08C0A441428C00E49EE9E946A5"><enum>(B)</enum><header display-inline="yes-display-inline">Factors</header><text display-inline="yes-display-inline">In determining whether exchange-rate
misalignment is occurring and a benefit thereby is conferred, the administering
authority in each case—</text>
<clause commented="no" display-inline="no-display-inline" id="HC462CDF247074EB99ECD0528ADA1292D"><enum>(i)</enum><text display-inline="yes-display-inline">shall consider the exporting
country’s—</text>
<subclause commented="no" display-inline="no-display-inline" id="HC00B74DEBF7C41C986E62405B6595BAD"><enum>(I)</enum><text display-inline="yes-display-inline">bilateral balance-of-trade surplus or
deficit with the United States;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H2A1953EE7BF4422CA696F72ECC7E3DC"><enum>(II)</enum><text display-inline="yes-display-inline">balance-of-trade surplus or deficit with
its other trading partners individually and in the aggregate;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H985D4D1F46794738B61CDEDC67A2DAA1"><enum>(III)</enum><text display-inline="yes-display-inline">foreign direct investment in its
territory;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H262FA7F0FC7A410EAC5C7CF33B757763"><enum>(IV)</enum><text display-inline="yes-display-inline">currency-specific and aggregate amounts of
foreign currency reserves; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB5E92DCC47CC4D9199583DA959449BC"><enum>(V)</enum><text display-inline="yes-display-inline">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;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H9794BB6B1D3B4A5C9D68535389AC5FF8"><enum>(ii)</enum><text display-inline="yes-display-inline">may consider such other economic factors as
are relevant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8AA0D522DFC24AF0897EBE48E8935F6"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H07F1666CA05140D3A6B8B4CC4EEA97E3"><enum>(C)</enum><header display-inline="yes-display-inline">Computation</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDFE43AF7C89B48A484B3E27C260369A3"><enum>(D)</enum><header display-inline="yes-display-inline">Type of economy</header><text display-inline="yes-display-inline">An authority found to be engaged in
exchange-rate misalignment may have either a market economy or a nonmarket
economy or a combination
thereof.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2829F52301734ACDA3F26573E34953F8"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HEB4713004F2D4B398BEA7916C63C5128" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">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</header>
<subsection commented="no" display-inline="no-display-inline" id="HB93EF6F1DD53481DA6578E516F32923E"><enum>(a)</enum><header display-inline="yes-display-inline">Market Disruption</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8691513EFC744B968432DBB4D120A779"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HC601CA83F78A4CE2BCF09C02DB00CF96" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H60D8E5A8C3E044379D644C828D7609FE"><enum>(3)</enum><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>under such conditions</quote> includes exchange-rate misalignment (as
defined in paragraph (4)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H33CFFF5122804DDB82F1EF81EB2DB5FE"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HF600C072719E4E5C8F995EF1E3DEE34F"><enum>(A)</enum><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>exchange-rate misalignment</quote> 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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7532B1B259A482D8DEBEB26FEFF513F" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In determining whether exchange-rate
misalignment is occurring, the Commission in each case—</text>
<clause commented="no" display-inline="no-display-inline" id="HCF0394B89EDD4FE0BEC06BFB23BE619B"><enum>(i)</enum><text display-inline="yes-display-inline">shall consider the People’s Republic of
China’s—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9B92C884F39341E4A6B7A44D41F02802"><enum>(I)</enum><text display-inline="yes-display-inline">bilateral balance-of-trade surplus or
deficit with the United States;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA6C4DC901C934FBFA72BA267A947CFF"><enum>(II)</enum><text display-inline="yes-display-inline">balance-of-trade surplus or deficit with
its other trading partners individually and in the aggregate;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HFADD523AFFF946D89370795C780867A9"><enum>(III)</enum><text display-inline="yes-display-inline">foreign-direct investment in its
territory;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0F9CF66274F64E0681A742899B5D39C6"><enum>(IV)</enum><text display-inline="yes-display-inline">currency-specific and aggregate amounts of
foreign currency reserves; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0224C03883434C3E8673892F6419BBCC"><enum>(V)</enum><text display-inline="yes-display-inline">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;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1984EE13ECA448959DFFE3873DAADEB1"><enum>(ii)</enum><text display-inline="yes-display-inline">may consider such other economic factors as
are relevant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDBD4B40DDB9E48A9933FC0083F036F4E"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H02AE9B81D25248CF9EE59DA5B17424EC" indent="up1"><enum>(C)</enum><header display-inline="yes-display-inline">Computation</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7E63756B494F4598B6BC8E91E527199"><enum>(b)</enum><header display-inline="yes-display-inline">Critical Circumstances</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H355437407E8944DAB313115647B87768" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="subsection">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).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H444173AA18D649B79C8EC838BCABAD2E"><enum>(c)</enum><header display-inline="yes-display-inline">Standard for Presidential
Action</header><text display-inline="yes-display-inline">Section 421(k)(2) of
the Trade Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/19/2451">19 U.S.C. 2451(k)(2)</external-xref>) is amended by
adding at the end the following new sentence: <quote>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).</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4095FDF0DE224E4BACE0C3E5E8541200"><enum>(d)</enum><header display-inline="yes-display-inline">Modifications of Relief</header><text display-inline="yes-display-inline">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: <quote>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.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE4E2D8DD33B742B1B13B9712F5A686B5"><enum>(e)</enum><header display-inline="yes-display-inline">Extension of Action</header><text display-inline="yes-display-inline">Section 421(o) of the Trade Act of 1974 (19
U.S.C. 2451(o)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5D79678651DB45099C32857FB2642EEE"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by adding at the end the
following new sentence: <quote>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.</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H29F2C24F4496445CB2C2B068E16C5C7F"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (4), by adding at the end the
following new sentence: <quote>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.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H07D93C04920745D9988829631ED97C47"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFF32986D4A5A47B38F6568A3B7088E71" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Prohibition on procurement by the
department of defense of certain defense articles imported from the People’s
Republic of China</header>
<subsection commented="no" display-inline="no-display-inline" id="HFDFC04BC728A4E00BCFC26C76C676F1"><enum>(a)</enum><header display-inline="yes-display-inline">Copy of Petition, Request, or Resolution To
Be Transmitted to the Secretary of Defense</header><text display-inline="yes-display-inline">Section 421(b)(4) of the Trade Act of 1974
(19 U.S.C. 2451(b)(4)) is amended by inserting <quote>, the Secretary of
Defense</quote> after <quote>, the Trade Representative</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB26D98443937415880C250EC1D324D8"><enum>(b)</enum><header display-inline="yes-display-inline">Determination of Secretary of
Defense</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HC264537BCD0B4572982CFDEC2BAAD5" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H6CEE90C95B70420BBB5FC9E0372182FD"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H73BD34A08AB24F85A9F08F428ED75536"><enum>(c)</enum><header display-inline="yes-display-inline">Prohibition on Procurement by the
Department of Defense of Certain Defense Articles</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5DE2B45085B6442794FAF763755355DF"><enum>(1)</enum><header display-inline="yes-display-inline">Prohibition</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43FC9F91874B4DFEA6EA9CC50036B683"><enum>(2)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H40D431ACB25C44298E5C879DADDAE44" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Application to goods from Canada and
Mexico</header><text display-inline="no-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/19/3438">19 U.S.C. 3438</external-xref>),
the amendments made by sections 102, 103, and 206 of this Act shall apply to
goods from Canada and Mexico.</text>
</section><enum>II</enum><header display-inline="yes-display-inline">International Monetary and Financial
Policy</header>
<section commented="no" display-inline="no-display-inline" id="HBA3B4A914D604043959FD14F4F234E6B" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9472F3784FD947DFA06FAFC06671AF99"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H73C8755C2A0543849447BE00C9BC30A2"><enum>(2)</enum><text display-inline="yes-display-inline">Exchange rates among major trading nations
are occasionally manipulated or fundamentally misaligned due to direct or
indirect governmental intervention in the exchange market.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7EECC428B65941328B1FBABDB6F7F0D7"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H03950E912A71474FACF11D9481FB7946"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B3E2BE58F174092AA3CA0F600AEABE2"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H427B91FEE2984EA78D06AC2E7232B267"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59ADED8E5AFD4DC0803CDD8071540898"><enum>(7)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3FA6518073E4892931BD0273E4B3E97"><enum>(8)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4B48AB2A8CFA4A9FB023DA3CCC6C8B43" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Amendments to definitions</header><text display-inline="no-display-inline">Section 3006 of the Exchange Rates and
International Economic Policy Coordination Act of 1988 (<external-xref legal-doc="usc" parsable-cite="usc/22/5306">22 U.S.C. 5306</external-xref>) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC141E9BB6B684FAA00AFEACFC8B4441C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HBB9B5CB541E34BE485BDEACF93079DB"><enum>(3)</enum><header display-inline="yes-display-inline">Fundamental misalignment</header><text display-inline="yes-display-inline">The term <quote>fundamental
misalignment</quote> 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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5315B5F8E44D42CA8864C00829FD89EC"><enum>(4)</enum><header display-inline="yes-display-inline">Effective exchange rate</header><text display-inline="yes-display-inline">The term <quote>effective exchange
rate</quote> means a weighted average of bilateral exchange rates, expressed in
either nominal or real terms.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA74375A2EF92449CB96C13AEA83FD111"><enum>(5)</enum><header display-inline="yes-display-inline">Generally accepted economic
rationale</header><text display-inline="yes-display-inline">The term
<quote>generally accepted economic rationale</quote> means an explanation drawn
on widely recognized macroeconomic theory for which there is a significant
degree of empirical
support.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H8284AE4FF1344EC79218D5D150533600" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Bilateral negotiations</header><text display-inline="no-display-inline">Section 3004(b) of the Exchange Rates and
International Economic Policy Coordination Act of 1988 (<external-xref legal-doc="usc" parsable-cite="usc/22/5304">22 U.S.C. 5304(b)</external-xref>)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H06A53FE39B9D4B698CB64EE73700B200" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H29EFB3146A1C453CBB5FE0C12D80AD91"><enum>(b)</enum><header display-inline="yes-display-inline">Bilateral Negotiations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H96C0605D8685438DBCB6051F422DC3B5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA789CD0079204233AB125357948225C3"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA3CAE3FF2084404B8E222E25E976BCD"><enum>(B)</enum><text display-inline="yes-display-inline">have a currency that is in fundamental
misalignment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82BAB66E69FB4B6AA8BD7D952FCD9258"><enum>(2)</enum><header display-inline="yes-display-inline">Affirmative determination</header><text display-inline="yes-display-inline">If the Secretary considers that such
manipulation or fundamental misalignment is occurring with respect to countries
that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA5693264FF7F4DDEA090EAD14000FFA8"><enum>(A)</enum><text display-inline="yes-display-inline">have material global current account
surpluses; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3DFA6EB074C848FAA1C8F98C9085B2E1"><enum>(B)</enum><text display-inline="yes-display-inline">have significant bilateral trade surpluses
with the United States,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB6BB7FF1F4D64646BC0094A49C00B89C"><enum>(3)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H8C1793CA5AD04F87B43CBC408D64C04C" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Reporting requirements</header><text display-inline="no-display-inline">Section 3005 of the Exchange Rates and
International Economic Policy Coordination Act of 1988 (<external-xref legal-doc="usc" parsable-cite="usc/22/5305">22 U.S.C. 5305</external-xref>) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H35747A6B0C0647F59836A0ADBD5941E6" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H9CB70FB8D9B4493FAC11EF3577000F8" section-type="subsequent-section"><enum>3005.</enum><header display-inline="yes-display-inline">Reporting requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="HE95AEB948CA244E99243298DA3F920EF"><enum>(a)</enum><header display-inline="yes-display-inline">Reports Required</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB1560F745BD5425592743E4239CC8325"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC91F0AFF97ED487500BDF0F41FDE001F"><enum>(2)</enum><header display-inline="yes-display-inline">Interim
report</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEC2E063570594AFC9E6809FE0233ACD8"><enum>(b)</enum><header display-inline="yes-display-inline">Contents of Reports</header><text display-inline="yes-display-inline">Each report submitted under subsection (a)
shall contain—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4C20AC3AD2D84FC686CD59B3BE8CD668"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6D55FD8DE6724B31BB90A938C7F395BE"><enum>(2)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75567D8DC594470BA7DD58CCE3028558"><enum>(3)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB52318DDC8944E68BBE621073392B38"><enum>(4)</enum><text display-inline="yes-display-inline">an evaluation of the factors that underlie
conditions in the currency markets, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H13EAECD37EAD46D8AD8BE9B3A2FACB64"><enum>(A)</enum><text display-inline="yes-display-inline">monetary and financial conditions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A6DA2A6ADB844A39DCE3A0665CA856"><enum>(B)</enum><text display-inline="yes-display-inline">foreign exchange reserve
accumulation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H895D4E33F6544447A572381F4C6CF334"><enum>(C)</enum><text display-inline="yes-display-inline">macroeconomic trends;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8A4CAA3C14CE44D1A3D74780997BA523"><enum>(D)</enum><text display-inline="yes-display-inline">trends in current and financial account
balances;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H94690D4FB89B4150815772A1A676C49"><enum>(E)</enum><text display-inline="yes-display-inline">the size and composition of, and changes
in, international capital flows;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D4EE84E1B624F1AA8753C004D472543"><enum>(F)</enum><text display-inline="yes-display-inline">the impact of the external sector on
economic changes;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H39145A758773408ABACA8470E3723066"><enum>(G)</enum><text display-inline="yes-display-inline">the size and growth of external
indebtedness;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4D642D8F70B34AF3A75CA09863C4F029"><enum>(H)</enum><text display-inline="yes-display-inline">trends in the net level of international
investment; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB4FFB4BBB8644938B1AFDFAD439E564"><enum>(I)</enum><text display-inline="yes-display-inline">capital controls, trade, and exchange
restrictions;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7498C0614EA64F0FACA18000FEC515E6"><enum>(5)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8497F5FDB36F4EF887AD5743C2A38358"><enum>(6)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD1DA363199A44FC9BBA6BCF90E2EE5F"><enum>(7)</enum><text display-inline="yes-display-inline">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);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA2C15CC2FE9B4AF0905948EBE89C4600"><enum>(8)</enum><text display-inline="yes-display-inline">the results of any prior consultations
conducted or other steps taken; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H29E3FE76DE524F809568ECF8B9592DC6"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE1AAF498C1344772AAE3900046A7B453"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB0BE8C708C5040CDA7D8BCBA8D607D96" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">a summary in each such instance of whether
or not exchange-rate misalignment was found and the reasoning and data
underlying that finding; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H63E5613BFF59482FA583DE00C706ABA0" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3A4AC156CE8E45AB9ECEAE0075669DFE"><enum>(c)</enum><header display-inline="yes-display-inline">Development of Reports</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H5BBFD769C057405C82C4084C7032CE55" section-type="subsequent-section"><enum>205.</enum><header display-inline="yes-display-inline">International financial institution
governance arrangements</header>
<subsection commented="no" display-inline="no-display-inline" id="H1C8D0EE8CE674376AFE6AF23C0EF2F29"><enum>(a)</enum><header display-inline="yes-display-inline">Initial
Review</header><text display-inline="yes-display-inline">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
(<external-xref legal-doc="usc" parsable-cite="usc/22/262r">22 U.S.C.
262r(c)(2)</external-xref>), 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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB86E91AA6CE244748B3C19E7C22E2C76"><enum>(b)</enum><header display-inline="yes-display-inline">Subsequent Action</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDD92D72CCDDE48528C98761D406BFC2"><enum>(c)</enum><header display-inline="yes-display-inline">Further
Action</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H95CAA7863D0044F49C3130E6CC200407" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Nonmarket economy status</header><text display-inline="no-display-inline">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: <quote>, 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
(<external-xref legal-doc="usc" parsable-cite="usc/22/5305">22 U.S.C.
5305(b)(7)</external-xref>) 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</quote>.</text>
</section>