[Federal Register Volume 70, Number 152 (Tuesday, August 9, 2005)]
[Notices]
[Page 46259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15674]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Petition Under Section 302 on China's Currency Valuation; 
Decision Not To Initiate Investigation

AGENCY: Office of the United States Trade Representative.

ACTION: Decision not to initiate investigation.

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SUMMARY: The United States Trade Representative (USTR) has determined 
not to initiate an investigation under section 302 of the Trade Act of 
1974 with respect to a petition addressed to China's currency valuation 
policies because initiation of an investigation would not be effective 
in addressing the issues raised in the petition.

DATES: Effective May 27, 2005.

FOR FURTHER INFORMATION CONTACT: Terrence McCartin, Senior Director of 
Monitoring and Enforcement for China, (202) 395-3900; or William Busis, 
Associate General Counsel and Chairman of the Section 301 Committee, 
(202) 395-3150.

SUPPLEMENTARY INFORMATION: On April 20, 2005, the Congressional China 
Currency Action Coalition filed a petition pursuant to section 
302(a)(1) of the Trade Act of 1974, as amended (the Trade Act), 
alleging that certain acts, policies and practices of the Government of 
China with respect to the valuation of China's currency deny and 
violate international legal rights of the United States, are 
unjustifiable, and burden or restrict U.S. commerce. In particular, the 
petition alleged that China's acts, policies and practices that 
maintain a fixed exchange rate vis a vis the U.S. dollar have resulted 
in a significant undervaluation of China's currency. The petition 
alleged that these acts, policies and practices amount: To a prohibited 
export subsidy under the Agreement on Subsidies and Countervailing 
Measures and articles VI and XVI of the General Agreement on Tariffs 
and Trade 1994 (GATT 1994); to exchange action under article XV of the 
GATT 1994 that frustrates the intent of articles I, II, III, and XI of 
the GATT 1994; and to subsidies that are inconsistent with China's 
obligations under articles 3, 9, and 10 of the Agreement on 
Agriculture. The petition also alleged that these acts, policies and 
practices of China violate international legal rights of the United 
States under articles IV and VIII of the Articles of Agreement of the 
International Monetary Fund, and that they burden or restrict U.S. 
commerce by, among other things, suppressing U.S. manufacturing for 
domestic consumption and the growth in U.S. exports.
    On May 27, 2005, the USTR determined not to initiate an 
investigation under section 302 of the Trade Act because, among other 
reasons, an investigation would not be effective in addressing the 
acts, policies, and practices covered in the petition. The 
Administration is currently involved in efforts to address with the 
Government of China the currency valuation issues raised in the 
petition. The USTR believes that initiation of an investigation under 
section 302 would hamper, rather than advance, Administration efforts 
to address China's currency valuation policies.

William Busis,
Chairman, Section 301 Committee.
[FR Doc. 05-15674 Filed 8-8-05; 8:45 am]
BILLING CODE 3190-W5-P