[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3134 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3134

To provide for identification of misaligned currency, require action to 
           correct the misalignment, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2010

Mr. Schumer (for himself, Ms. Stabenow, Mr. Graham, Mr. Brownback, Mr. 
  Brown of Ohio, Ms. Snowe, Mr. Feingold, Mr. Specter, Mr. Casey, Mr. 
Bayh, Mr. Levin, Mr. Cardin, Mrs. Gillibrand, Mr. Webb, Mr. Reed, Mrs. 
Lincoln, and Ms. Collins) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide for identification of misaligned currency, require action to 
           correct the misalignment, 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 ``Currency Exchange Rate Oversight 
Reform Act of 2010''.

            TITLE I--CURRENCY EXCHANGE RATE OVERSIGHT REFORM

SEC. 101. DEFINITIONS.

    In this title:
            (1) Administering authority.--The term ``administering 
        authority'' means the authority referred to in section 771(1) 
        of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
            (2) Agreement on government procurement.--The term 
        ``Agreement on Government Procurement'' means the agreement 
        referred to in section 101(d)(17) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(17)).
            (3) Country.--The term ``country'' means a foreign country, 
        dependent territory, or possession of a foreign country, and 
        may include an association of 2 or more foreign countries, 
        dependent territories, or possessions of countries into a 
        customs union outside the United States.
            (4) Exporting country.--The term ``exporting country'' 
        means the country in which the subject merchandise is produced 
        or manufactured.
            (5) Fundamental misalignment.--The term ``fundamental 
        misalignment'' means a significant and sustained undervaluation 
        of the prevailing real effective exchange rate, adjusted for 
        cyclical and transitory factors, from its medium-term 
        equilibrium level.
            (6) Fundamentally misaligned currency.--The term 
        ``fundamentally misaligned currency'' means a foreign currency 
        that is in fundamental misalignment.
            (7) Real effective exchange rate.--The term ``real 
        effective exchange rate'' means a weighted average of bilateral 
        exchange rates, expressed in price-adjusted terms.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (9) Sterilization.--The term ``sterilization'' means 
        domestic monetary operations taken to neutralize the monetary 
        impact of increases in reserves associated with intervention in 
        the currency exchange market.
            (10) Subject merchandise.--The term ``subject merchandise'' 
        means the merchandise subject to an antidumping investigation, 
        review, suspension agreement, or order referred to in section 
        771(25) of the Tariff Act of 1930 (19 U.S.C. 1677(25)).
            (11) WTO agreement.--The term ``WTO Agreement'' means the 
        agreement referred to in section 2(9) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(9)).

SEC. 102. REPORT ON INTERNATIONAL MONETARY POLICY AND CURRENCY EXCHANGE 
              RATES.

    (a) Reports Required.--
            (1) In general.--Not later than March 15 and September 15 
        of each calendar year, the Secretary, after consulting with the 
        Chairman of the Board of Governors of the Federal Reserve 
        System and the Advisory Committee on International Exchange 
        Rate Policy, shall submit to Congress and make public, a 
        written report on international monetary policy and currency 
        exchange rates.
            (2) Consultations.--On or before March 30 and September 30 
        of each calendar year, the Secretary shall appear, if 
        requested, before the Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Finance of the Senate and the 
        Committee on Financial Services and the Committee on Ways and 
        Means of the House of Representatives to provide testimony on 
        the reports submitted pursuant to paragraph (1).
    (b) Content of Reports.--Each report submitted under subsection (a) 
shall contain the following:
            (1) An analysis of currency market developments and the 
        relationship between the United States dollar and the 
        currencies of major economies and trading partners of the 
        United States.
            (2) A review of the economic and monetary policies of major 
        economies and trading partners of the United States, and an 
        evaluation of how such policies impact currency exchange rates.
            (3) A description of any currency intervention by the 
        United States or other major economies or trading partners of 
        the United States, or other actions undertaken to adjust the 
        actual exchange rate relative to the United States dollar.
            (4) An evaluation of the domestic and global factors that 
        underlie the conditions in the currency markets, including--
                    (A) monetary and financial conditions;
                    (B) accumulation of foreign assets;
                    (C) macroeconomic trends;
                    (D) trends in current and financial account 
                balances;
                    (E) the size, composition, and growth of 
                international capital flows;
                    (F) the impact of the external sector on economic 
                growth;
                    (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 designated as fundamentally 
        misaligned currencies pursuant to section 103(a)(2), and a 
        description of any economic models or methodologies used to 
        establish the list.
            (6) A list of currencies designated for priority action 
        pursuant to section 103(a)(3).
            (7) An identification of the nominal value associated with 
        the medium-term equilibrium exchange rate, relative to the 
        United States dollar, for each currency listed under paragraph 
        (6).
            (8) A description of any consultations conducted or other 
        steps taken pursuant to section 104, 105, or 106, including any 
        actions taken to eliminate the fundamental misalignment.
            (9) A description of any determination made pursuant to 
        section 108(a).
    (c) Consultations.--The Secretary shall consult with the Chairman 
of the Board of Governors of the Federal Reserve System and the 
Advisory Committee on International Exchange Rate Policy with respect 
to the preparation of each report required under subsection (a). Any 
comments provided by the Chairman of the Board of Governors of the 
Federal Reserve System or the Advisory Committee on International 
Exchange Rate Policy 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 to Congress after 
taking into account all such comments received.

SEC. 103. IDENTIFICATION OF FUNDAMENTALLY MISALIGNED CURRENCIES.

    (a) Identification.--
            (1) In general.--The Secretary shall analyze on a 
        semiannual basis the prevailing real effective exchange rates 
        of foreign currencies.
            (2) Designation of fundamentally misaligned currencies.--
        With respect to the currencies of countries that have 
        significant bilateral trade flows with the United States, and 
        currencies that are otherwise significant to the operation, 
        stability, or orderly development of regional or global capital 
        markets, the Secretary shall determine whether any such 
        currency is in fundamental misalignment and shall designate 
        such currency as a fundamentally misaligned currency.
            (3) Designation of currencies for priority action.--The 
        Secretary shall designate a currency identified under paragraph 
        (2) for priority action if the country that issues such 
        currency is--
                    (A) engaging in protracted large-scale intervention 
                in the currency exchange market, particularly if 
                accompanied by partial or full sterilization;
                    (B) engaging in excessive and prolonged official or 
                quasi-official accumulation of foreign exchange 
                reserves and other foreign assets, for balance of 
                payments purposes;
                    (C) introducing or substantially modifying for 
                balance of payments purposes a restriction on, or 
                incentive for, the inflow or outflow of capital, that 
                is inconsistent with the goal of achieving full 
                currency convertibility; or
                    (D) pursuing any other policy or action that, in 
                the view of the Secretary, warrants designation for 
                priority action.
    (b) Reports.--The Secretary shall include a list of any foreign 
currency designated under paragraph (2) or (3) of subsection (a) and 
the data and reasoning underlying such designations in each report 
required by section 102.

SEC. 104. NEGOTIATIONS AND CONSULTATIONS.

    (a) In General.--Upon designation of a currency pursuant to section 
103(a)(2), the Secretary shall seek to consult bilaterally with the 
country that issues such currency in order to facilitate the adoption 
of appropriate policies to address the fundamental misalignment.
    (b) Consultations Involving Currencies Designated for Priority 
Action.--With respect to each currency designated for priority action 
pursuant to section 103(a)(3), the Secretary shall, in addition to 
seeking to consult with a country pursuant to subsection (a)--
            (1) seek the advice of the International Monetary Fund with 
        respect to the Secretary's findings in the report submitted to 
        Congress pursuant to section 102(a); and
            (2) encourage other governments, whether bilaterally or in 
        appropriate multinational fora, to join the United States in 
        seeking the adoption of appropriate policies by the country 
        described in subsection (a) to eliminate the fundamental 
        misalignment.

SEC. 105. FAILURE TO ADOPT APPROPRIATE POLICIES.

    (a) In General.--Not later than 90 days after the date on which a 
currency is designated for priority action pursuant to section 
103(a)(3), the Secretary shall determine whether the country that 
issues such currency has adopted appropriate policies, and taken 
identifiable action, to eliminate the fundamental misalignment. The 
Secretary shall promptly notify Congress of such determination and 
publish notice of the determination in the Federal Register. If the 
Secretary determines that the country that issues such currency has 
failed to adopt appropriate policies, or take identifiable action, to 
eliminate the fundamental misalignment, the following shall apply with 
respect to the country until a notification described in section 106(b) 
is published in the Federal Register:
            (1) Adjustment under antidumping law.--For purposes of an 
        antidumping investigation under subtitle B of title VII of the 
        Tariff Act of 1930 (19 U.S.C. 1673 et seq.), or a review under 
        subtitle C of such Act (19 U.S.C. 1675 et seq.), the following 
        shall apply:
                    (A) In general.--The administering authority shall 
                ensure a fair comparison between the export price and 
                the normal value by adjusting the price used to 
                establish export price or constructed export price to 
                reflect the fundamental misalignment of the currency of 
                the exporting country.
                    (B) Sales subject to adjustment.--The adjustment 
                described in subparagraph (A) shall apply with respect 
                to subject merchandise sold on or after the date that 
                is 30 days after the date the currency of the exporting 
                country is designated for priority action pursuant to 
                section 103(a)(3).
            (2) Federal procurement.--
                    (A) In general.--The President shall prohibit the 
                procurement by the Federal Government of products or 
                services from the country.
                    (B) Exception.--The prohibition provided for in 
                subparagraph (A) shall not apply with respect to a 
                country that is a party to the Agreement on Government 
                Procurement.
            (3) Request for imf action.--The United States shall inform 
        the Managing Director of the International Monetary Fund of the 
        failure of the country to adopt appropriate policies, or to 
        take identifiable action, to eliminate the fundamental 
        misalignment, and the actions the country is engaging in that 
        are identified in section 103(a)(3), and shall request that the 
        Managing Director of the International Monetary Fund--
                    (A) consult with such country regarding the 
                observance of the country's obligations under article 
                IV of the International Monetary Fund Articles of 
                Agreement, including through special consultations, if 
                necessary; and
                    (B) formally report the results of such 
                consultations to the Executive Board of the 
                International Monetary Fund within 180 days of the date 
                of such request.
            (4) OPIC financing.--The Overseas Private Investment 
        Corporation shall not approve any new financing (including 
        insurance, reinsurance, or guarantee) with respect to a project 
        located within the country.
            (5) Multilateral bank financing.--The Secretary shall 
        instruct the United States Executive Director at each 
        multilateral bank to oppose the approval of any new financing 
        (including loans, other credits, insurance, reinsurance, or 
        guarantee) to the government of the country or for a project 
        located within the country.
    (b) Waiver.--
            (1) In general.--The President may waive any action 
        provided for under subsection (a) if the President determines 
        that--
                    (A) taking such action would cause serious harm to 
                the national security of the United States; or
                    (B) it is in the vital economic interest of the 
                United States to do so and taking such action would 
                have an adverse impact on the United States economy 
                greater than the benefits of such action.
            (2) Notification.--The President shall promptly notify 
        Congress of a determination under paragraph (1) (and the 
        reasons for the determination, if made under paragraph (1)(B)) 
        and shall publish notice of the determination (and the reasons 
        for the determination, if made under paragraph (1)(B)) in the 
        Federal Register.
    (c) Reports.--The Secretary shall describe any action or 
determination pursuant to subsection (a) or (b) in the first semiannual 
report required by section 102 after the date of such action or 
determination.

SEC. 106. PERSISTENT FAILURE TO ADOPT APPROPRIATE POLICIES.

    (a) Persistent Failure To Adopt Appropriate Policies.--Not later 
than 360 days after the date on which a currency is designated for 
priority action pursuant to section 103(a)(3), the Secretary shall 
determine whether the country that issues such currency has adopted 
appropriate policies, and taken identifiable action, to eliminate the 
fundamental misalignment. The Secretary shall promptly notify Congress 
of such determination and shall publish notice of the determination in 
the Federal Register. If the Secretary determines that the country that 
issues such currency has failed to adopt appropriate policies, or take 
identifiable action, to eliminate the fundamental misalignment, in 
addition to the actions described in section 105(a), the following 
shall apply with respect to the country until a notification described 
in subsection (b) is published in the Federal Register:
            (1) Action at the wto.--The United States Trade 
        Representative shall request consultations in the World Trade 
        Organization with the country regarding the consistency of the 
        country's actions with its obligations under the WTO Agreement.
            (2) Remedial intervention.--
                    (A) In general.--The Secretary shall consult with 
                the Board of Governors of the Federal Reserve System to 
                consider undertaking remedial intervention in 
                international currency markets in response to the 
                fundamental misalignment of the currency designated for 
                priority action, and coordinating such intervention 
                with other monetary authorities and the International 
                Monetary Fund. In doing so, the Secretary shall 
                consider the impact of such intervention on domestic 
                economic growth and stability, including the impact on 
                interest rates.
                    (B) Notice to country.--At the same time the 
                Secretary takes action under subparagraph (A), the 
                Secretary shall notify the country that issues such 
                currency of the consultations under subparagraph (A).
    (b) Notification.--The Secretary shall promptly notify Congress 
when a country that issues a currency designated for priority action 
pursuant to section 103(a)(3) adopts appropriate policies, or takes 
identifiable action, to eliminate the fundamental misalignment, and 
publish notice of the action of that country in the Federal Register.
    (c) Waiver.--
            (1) In general.--The President may waive any action 
        provided for under this section, or extend any waiver provided 
        for under section 105(b), if the President determines that--
                    (A) taking such action would cause serious harm to 
                the national security of the United States; or
                    (B) it is in the vital economic interest of the 
                United States to do so, and that taking such action 
                would have an adverse impact on the United States 
                economy substantially out of proportion to the benefits 
                of such action.
            (2) Notification.--The President shall promptly notify 
        Congress of a determination under paragraph (1) (and the 
        reasons for the determination, if made under paragraph (1)(B)) 
        and shall publish notice of the determination (and the reasons 
        for the determination, if made under paragraph (1)(B)) in the 
        Federal Register.
    (d) Disapproval of Waiver.--If the President waives an action 
pursuant to subsection (c)(1)(B), or extends a waiver provided for 
under section 105(b)(1)(B), the waiver shall cease to have effect upon 
the enactment of a joint resolution described in section 107(a)(2).
    (e) Reports.--The Secretary shall describe any action or 
determination pursuant to subsection (a), (b), or (c) in the first 
semiannual report required by section 102 after the date of such action 
or determination.

SEC. 107. CONGRESSIONAL DISAPPROVAL OF WAIVER.

    (a) Resolution of Disapproval.--
            (1) Introduction.--If a resolution of disapproval is 
        introduced in the House of Representatives or the Senate during 
        the 90-day period (not counting any day which is excluded under 
        section 154(b)(1) of the Trade Act of 1974 (19 U.S.C. 
        2194(b)(1))), beginning on the date on which the President 
        first notifies Congress of a determination to waive action with 
        respect to a country pursuant to section 106(c)(1)(B), that 
        resolution of disapproval shall be considered in accordance 
        with this subsection.
            (2) Resolution of disapproval.--In this subsection, the 
        term ``resolution of disapproval'' means only a joint 
        resolution of the two Houses of the Congress, the sole matter 
        after the resolving clause of which is as follows: ``That 
        Congress does not approve the determination of the President 
        under section 106(c)(1)(B) of the Currency Exchange Rate 
        Oversight Reform Act of 2010 with respect to ______, of which 
        Congress was notified on _____.'', with the first blank space 
        being filled with the name of the appropriate country and the 
        second blank space being filled with the appropriate date.
            (3) Procedures for considering resolutions.--
                    (A) Introduction and referral.--Resolutions of 
                disapproval--
                            (i) in the House of Representatives--
                                    (I) may be introduced by any Member 
                                of the House;
                                    (II) shall be referred to the 
                                Committee on Financial Services and, in 
                                addition, to the Committee on Rules; 
                                and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate--
                                    (I) may be introduced by any Member 
                                of the Senate;
                                    (II) shall be referred to the 
                                Committee on Banking, Housing, and 
                                Urban Affairs; and
                                    (III) may not be amended.
                    (B) Committee discharge and floor consideration.--
                The provisions of subsections (c) through (f) of 
                section 152 of the Trade Act of 1974 (other than 
                paragraph (3) of such subsection (f)) (19 U.S.C. 
                2192(c) through (f)) (relating to committee discharge 
                and floor consideration of certain resolutions in the 
                House and Senate) apply to a joint resolution of 
                disapproval under this section to the same extent as 
                such subsections apply to joint resolutions under such 
                section 152.
    (b) Rules of House of Representatives and Senate.--This section is 
enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such is 
        deemed a part of the rules of each House, respectively, and the 
        rules provided for in this section supersede other rules only 
        to the extent that they are inconsistent with such other rules; 
        and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules provided for in this 
        section (so far as relating to the procedures of that House) at 
        any time, in the same manner, and to the same extent as any 
        other rule of that House.

SEC. 108. 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 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 was designated a currency for 
priority action pursuant to section 103(a)(3) in the most recent report 
required by section 102. The determination shall be reported to 
Congress.
    (b) Subsequent Action.--The United States shall oppose any proposed 
change in the governance arrangement of the international financial 
institution (described 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 the international 
financial institution, pursuant to subsection (b), until the Secretary 
determines and reports to Congress that the proposed change would not 
benefit any member of the international financial institution, in the 
form of increased voting shares or representation, that has a currency 
that is designated a currency for priority action pursuant to section 
103(a)(3).

SEC. 109. ADJUSTMENT FOR FUNDAMENTALLY MISALIGNED CURRENCY DESIGNATED 
              FOR PRIORITY ACTION.

    (a) In General.--Subsection (c)(2) of section 772 of the Tariff Act 
of 1930 (19 U.S.C. 1677a(c)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) if required by section 105(a)(1) of the 
                Currency Exchange Rate Oversight Reform Act of 2010, 
                the percentage by which the domestic currency of the 
                producer or exporter is undervalued in relation to the 
                United States dollar as determined under section 
                771(37).''.
    (b) Calculation Methodology.--Section 771 of the Tariff Act of 1930 
(19 U.S.C. 1677) is amended by adding at the end the following:
            ``(37) Percentage undervaluation.--The administering 
        authority shall determine the percentage by which the domestic 
        currency of the producer or exporter is undervalued in relation 
        to the United States dollar by comparing the nominal value 
        associated with the medium-term equilibrium exchange rate of 
        the domestic currency of the producer or exporter, identified 
        by the Secretary pursuant to section 102(b)(7) of the Currency 
        Exchange Rate Oversight Reform Act of 2010, to the official 
        daily exchange rate identified by the administering 
        authority.''.

SEC. 110. CURRENCY UNDERVALUATION UNDER COUNTERVAILING DUTY LAW.

    (a) Investigation or Review.--Subsection (c) of section 702 of the 
Tariff Act of 1930 (19 U.S.C. 1671a(c)) is amended by adding at the end 
the following:
            ``(6) Currency undervaluation.--For purposes of a 
        countervailing duty investigation under this subtitle, or a 
        review under subtitle C of this title, the following shall 
        apply:
                    ``(A) In general.--The administering authority 
                shall initiate an investigation to determine whether 
                currency undervaluation by the government of a country 
                or any public entity within the territory of a country 
                is providing, directly or indirectly, a countervailable 
                subsidy as described in section 771(5), if--
                            ``(i) a petition filed by an interested 
                        party (described in subparagraph (C), (D), (E), 
                        (F), or (G) of section 771(9)) alleges the 
                        elements necessary for the imposition of the 
                        duty imposed by section 701(a); and
                            ``(ii) the petition is accompanied by 
                        information reasonably available to the 
                        petitioner supporting those allegations.
                    ``(B) Designation of fundamentally misaligned 
                currency for priority action.--Upon designation of a 
                currency as a fundamentally misaligned currency for 
                priority action pursuant to section 103(a)(3) of the 
                Currency Exchange Rate Oversight Reform Act of 2010, 
                the administering authority shall initiate an 
                investigation to determine whether the country that 
                issues such currency is providing, directly or 
                indirectly, a countervailable subsidy as defined in 
                section 771(5), if--
                            ``(i) a petition filed by an interested 
                        party (described in subparagraph (C), (D), (E), 
                        (F), or (G) of section 771(9)) alleges the 
                        elements necessary for the imposition of the 
                        duty imposed by section 701(a); and
                            ``(ii) the petition is accompanied by 
                        information reasonably available to the 
                        petitioner supporting those allegations.''.
    (b) Benefit Calculation Methodology.--Section 771 of the Tariff Act 
of 1930 (19 U.S.C. 1677), as amended by section 109(b), is amended by 
adding at the end the following:
            ``(38) Currency undervaluation benefit.--For purposes of a 
        countervailing duty investigation under subtitle A of this 
        title, or a review under subtitle C of this title, the 
        following shall apply:
                    ``(A) In general.--If the administering authority 
                determines to investigate whether currency 
                undervaluation is a countervailable subsidy as defined 
                in section 771(5), the administering authority shall 
                determine whether there is a benefit to the recipient 
                and measure such benefit as the simple average of the 
                results yielded from application of the macroeconomic-
                balance approach and the equilibrium-real-exchange-rate 
                approach. The administering authority shall rely upon 
                data that are publicly available, reliable, and 
                complied and maintained by the International Monetary 
                Fund or the World Bank, or other international 
                organizations or national governments if International 
                Monetary Fund or World Bank data is not available.
                    ``(B) Designation of fundamentally misaligned 
                currency for priority action.--In the case of 
                designation of a currency as a fundamentally misaligned 
                currency for priority action pursuant to section 
                103(a)(3) of the Currency Exchange Rate Oversight 
                Reform Act of 2010, the administering authority shall 
                determine whether there is a benefit to the recipient 
                and measure such benefit by comparing the nominal value 
                associated with the medium-term equilibrium exchange 
                rate of the currency of the exporting country, 
                identified by the Secretary pursuant to section 
                102(b)(7) of such Act, to the official daily exchange 
                rate identified by the administering authority.
                    ``(C) Definitions.--
                            ``(i) Macroeconomic-balance approach.--The 
                        term `marcroeconomic-balance approach' means a 
                        methodology under which the level of 
                        undervaluation of the real effective exchange 
                        rate of the exporting country's currency is 
                        defined as the change in the real effective 
                        exchange rate needed to achieve equilibrium in 
                        the exporting country's balance of payments, as 
                        such methodology is described in the guidelines 
                        of the International Monetary Fund's 
                        Consultative Group on Exchange Rate Issues, if 
                        available.
                            ``(ii) Equilibrium-real-exchange-rate 
                        approach.--The term `equilibrium-real-exchange-
                        rate approach' means a methodology under which 
                        the level of undervaluation of the real 
                        effective exchange rate of the exporting 
                        country's currency is defined as the difference 
                        between the observed real effective exchange 
                        rate and the real effective exchange rate 
                        predicted by an econometric model, as such 
                        methodology is described in the guidelines of 
                        the International Monetary Fund's Consultative 
                        Group on Exchange Rate Issues, if available.''.

SEC. 111. NONMARKET ECONOMY STATUS.

    Paragraph (18)(B) of section 771 of the Tariff Act of 1930 (19 
U.S.C. 1677(18)(B)) is amended--
            (1) by striking ``and'' at the end of clause (v); and
            (2) by redesignating clause (vi) as clause (vii) and 
        inserting after clause (v) the following:
                            ``(vi) whether the currency of the foreign 
                        country is designated, or has been designated 
                        at any time over the 5 years prior to review of 
                        nonmarket economy status, a currency for 
                        priority action pursuant to section 103(a)(3) 
                        of the Currency Exchange Rate Oversight Reform 
                        Act of 2010, and''.

SEC. 112. APPLICATION TO 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 (19 U.S.C. 3438), section 105(a)(1) and the 
amendments made by sections 109, 110, and 111 shall apply with respect 
to goods from Canada and Mexico.

SEC. 113. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.

    (a) Establishment.--
            (1) In general.--There is established an Advisory Committee 
        on International Exchange Rate Policy (in this section referred 
        to as the ``Committee''). The Committee shall be responsible 
        for--
                    (A) advising the Secretary in the preparation of 
                each report to Congress on international monetary 
                policy and currency exchange rates, provided for in 
                section 102; and
                    (B) advising Congress and the President with 
                respect to--
                            (i) international exchange rates and 
                        financial policies; and
                            (ii) the impact of such policies on the 
                        economy of the United States.
            (2) Membership.--
                    (A) In general.--The Committee shall be composed of 
                9 members as follows, none of whom shall be from the 
                Federal Government:
                            (i) Congressional appointees.--
                                    (I) Senate appointees.--Four 
                                persons shall be appointed by the 
                                President pro tempore of the Senate, 
                                upon the recommendation of the chairmen 
                                and ranking members of the Committee on 
                                Banking, Housing, and Urban Affairs and 
                                the Committee on Finance of the Senate.
                                    (II) House appointees.--Four 
                                persons shall be appointed by the 
                                Speaker of the House of Representatives 
                                upon the recommendation of the chairmen 
                                and ranking members of the Committee on 
                                Financial Services and the Committee on 
                                Ways and Means of the House of 
                                Representatives.
                            (ii) Presidential appointee.--One person 
                        shall be appointed by the President.
                    (B) Qualifications.--Persons shall be selected 
                under subparagraph (A) on the basis of their 
                objectivity and demonstrated expertise in finance, 
                economics, or currency exchange.
            (3) Terms.--Members shall be appointed for a term of 4 
        years or until the Committee terminates. An individual may be 
        reappointed to the Committee for additional terms.
            (4) Vacancies.--Any vacancy in the Committee shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (b) Duration of Committee.--Notwithstanding section 14(c) of the 
Federal Advisory Committee Act (5 U.S.C. App.), the Committee shall 
terminate on the date that is 4 years after the date of the enactment 
of this Act unless renewed by the President pursuant to section 14 of 
the Federal Advisory Committee Act (5 U.S.C. App.) for a subsequent 4-
year period. The President may continue to renew the Committee for 
successive 4-year periods by taking appropriate action prior to the 
date on which the Committee would otherwise terminate.
    (c) Public Meetings.--The Committee shall hold at least 2 public 
meetings each year for the purpose of accepting public comments, 
including comments from small business owners. The Committee shall also 
meet as needed at the call of the Secretary or at the call of two-
thirds of the members of the Committee.
    (d) Chairperson.--The Committee shall elect from among its members 
a chairperson for a term of 4 years or until the Committee terminates. 
A chairperson of the Committee may be reelected chairperson but is 
ineligible to serve consecutive terms as chairperson.
    (e) Staff.--The Secretary shall make available to the Committee 
such staff, information, personnel, administrative services, and 
assistance as the Committee may reasonably require to carry out its 
activities.
    (f) Application of Federal Advisory Committee Act.--
            (1) In general.--The provisions of the Federal Advisory 
        Committee Act (5 U.S.C. App.) shall apply to the Committee.
            (2) Exception.--Except for the 2 annual public meetings 
        required under subsection (c), meetings of the Committee shall 
        be exempt from the requirements of subsections (a) and (b) of 
        sections 10 and 11 of the Federal Advisory Committee Act 
        (relating to open meetings, public notice, public 
        participation, and public availability of documents), whenever 
        and to the extent it is determined by the President or the 
        Secretary that such meetings will be concerned with matters the 
        disclosure of which would seriously compromise the development 
        by the United States Government of monetary and financial 
        policy.

SEC. 114. REPEAL OF THE EXCHANGE RATES AND INTERNATIONAL ECONOMIC 
              POLICY COORDINATION ACT OF 1988.

    The Exchange Rates and International Economic Policy Coordination 
Act of 1988 (22 U.S.C. 5301 et seq.) is repealed.

     TITLE II--PERMANENT EXTENSION OF CERTAIN CHARITABLE PROVISIONS

SEC. 201. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR 
              CHARITABLE PURPOSES.

    (a) In General.--Section 408(d)(8) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (F).
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2009.

SEC. 202. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) In General.--Section 170(e)(3)(C) of the Internal Revenue Code 
of 1986 is amended by striking clause (iv).
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 203. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
              INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Section 170(e)(3)(D) of the Internal Revenue Code 
of 1986 is amended by striking clause (iv).
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 204. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF 
              COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.

    (a) In General.--Section 170(e)(6) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (G).
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.
                                 <all>