[Congressional Record Volume 156, Number 133 (Wednesday, September 29, 2010)]
[Extensions of Remarks]
[Pages E1863-E1864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  PROVIDING FOR CONSIDERATION OF H.R. 2378, CURRENCY REFORM FOR FAIR 
                               TRADE ACT

                                 ______
                                 

                               speech of

                          HON. DANIEL LIPINSKI

                              of illinois

                    in the house of representatives

                     Wednesday, September 29, 2010

  Mr. LIPINSKI. Mr. Speaker, I rise in strong support of H.R. 2378, the 
Currency Reform for

[[Page E1864]]

Fair Trade Act. I am a proud cosponsor of this bill, and am pleased 
that this measure has been brought up for a vote.
  American manufacturers are facing numerous challenges during this 
recession, but China's manipulation of its currency is undoubtedly the 
most insidious. These unfair practices put U.S. firms at a distinct 
disadvantage in their efforts to remain competitive and to export goods 
to a growing global market. By fixing the value of the renminbi to the 
American dollar, China effectively undervalues its currency by at least 
25 percent and affords its manufacturers an unfair advantage, making 
their exports artificially cheap. As a result of this manipulation, 
American-made products are unable to compete in the marketplace and 
American manufacturers and other exporters are forced to lay off 
workers.
  H.R. 2378 will begin to address this market exploitation by allowing 
the United States to assess countervailing and anti-dumping duties on 
products exported from any nation that benefits from the export subsidy 
of manipulated currency. It has been estimated that by implementing 
these duties as many as 500,000 U.S. manufacturing jobs will be 
created. And by making American manufacturers more competitive, we can 
begin to overcome the estimated 1.4 percent annual GDP reduction caused 
by China's currency manipulation.
  While both Presidents Bush and Obama have sought to address China's 
currency manipulation diplomatically through both bilateral and 
multilateral channels, China has provided only empty pledges to allow 
its currency to float freely with the market--pledges that have never 
truly been realized. When one looks at the value of the Chinese 
renminbi against the U.S. dollar, it is remarkable how unnaturally flat 
the rate has remained for the last 2 years. Though the renminbi has 
appreciated by a tiny amount in recent months, this is an obvious 
attempt by the Chinese to leave the impression that it is acting 
responsibly with respect to its currency, when in fact we all know that 
is not the case. This legislation is crucial to overcoming China's 
failed promises to operate in the global economy under fair rules and 
standards.
  This is not some esoteric exercise. China's currency manipulation has 
a direct effect on a wide range of U.S. manufacturers, from steel to 
paper, machinery to textiles. It has driven firms out of business and 
cost us millions of jobs, especially in the Midwest. It serves to 
decrease exports and widen our trade deficit with China at a time when 
we need to be expanding our exports and growing our economy. As my 
constituent Zach Mottl, of Atlas Tool and Die and the Tool and 
Manufacturing Association, said, ``a few percentage point difference 
[in currency value] can make that difference in terms of whether a 
company buys here or buys overseas.''
  It is the government's duty to defend the American people. American 
workers and families have been under assault for years from China's 
unfair currency policy which steals American jobs. While we've been 
playing by the rules, China has enriched itself by deliberately 
ignoring them. Our policy has been all carrot and no stick, with 
unfortunate but predictable consequences. We cannot continue to allow 
American businesses and workers to be put out of work by China's 
currency manipulation. I am pleased to support this much needed, 
bipartisan legislation, and I urge the Senate to quickly act on this 
important measure in order to bring fairness and balance to 
international trade.

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