[Federal Register Volume 72, Number 161 (Tuesday, August 21, 2007)]
[Notices]
[Page 46688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16455]


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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.

EFFECTIVE DATE: June 14, 2007.

FOR FURTHER INFORMATION CONTACT: Terrence J. McCartin, Deputy Assistant 
United States Trade Representative for China Enforcement, (202) 395-
3900; or William Busis, Associate General Counsel and Chairman of the 
Section 301 Committee, (202) 395-3150.

SUPPLEMENTARY INFORMATION: On May 17, 2007, the Bipartisan 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-[aacute]-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); exchange action under 
article XV of the GATT 1994 that frustrates the intent of articles I, 
II, III, VI, XI , and XVI of the GATT 1994; and 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 June 14, 2007, 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. E7-16455 Filed 8-20-07; 8:45 am]
BILLING CODE 3190-W7-P