[Congressional Record (Bound Edition), Volume 151 (2005), Part 6]
[Senate]
[Page 7914]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            CHINESE TARIFFS

  Mr. DOMENICI. Mr. President, on April 6, 2005, I voted against a 
motion to table amendment No. 309, otherwise known as the Schumer 
amendment, to the fiscal year 2006-2007 Foreign Affairs authorization 
bill. Upon careful consideration of this issue I have come to the 
conclusion that this amendment will be ineffective at best and harmful 
at worst. As it is currently written, the Schumer amendment will impose 
a tariff on all Chinese imports. Sponsors of the amendment claim this 
measure is necessary in order to compel the Chinese Government to 
revalue its currency.
  I am a supporter of free trade. I also believe that the benefits of 
free trade must be weighed against any harm that could be done to vital 
American interests. Understandably, there is considerable angst over 
the expanding trade deficit between the United States and China. Still, 
this body should not be hasty to repeat a mistake of the 106th Congress 
when it acted to support a similar amendment to the 2000 China trade 
bill.
  Similar to what the Schumer amendment proposes, provisions in the 
China trade bill allowed the Federal Government to impose a de facto 
tariff in the form of dumping penalties against foreign companies. The 
collected penalties were distributed to the companies that filed 
complaints in the U.S. It should be noted that the WTO defines 
``dumping'' as a situation where goods are sold below price normally 
charged in home market. By contrast, and to the consternation of our 
trade partners, domestic American companies have thought of dumping as 
goods being sold below price normally charged in the U.S. market. Over 
the past 4\1/2\ years since the bill was enacted, American companies 
have collected over $1 billion in penalties from suits filed in the 
United States.
  While that might not seem like such a bad thing, other governments 
have been busy filing complaints with the World Trade Organization. 
They are now determined to impose 15 percent tariffs against American 
exporters as punishment for the American ``dumping'' penalties. The 
costs of these tariffs will be borne by all sorts of American 
manufacturers and exporters. These tariffs will also punish American 
workers by making their work products uncompetitive in the global 
market.
  I raise this parallel because it reveals to us the dangers of not 
seeking resolution through an agreed-to and effective framework 
provided by the WTO. The strength of the American economy has always 
been based on the openness of our markets. Unilaterally imposing 
tariffs on Chinese imports will act as an unfair tax on American 
exporters and that is a price we cannot afford to pay.

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