Stabenow-Graham-Bayh Legislation Gets Tough on China; Stands up for U.S. Manufacturers

U.S. Senator Debbie Stabenow - Press Release

FOR IMMEDIATE RELEASE April 14, 2005		Contact: Dave Lemmon, Bob Meissner Phone: 202-224-4822

WASHINGTON — U.S. Senator Debbie Stabenow (D-MI) joined her colleagues, Senators Lindsey Graham (R-SC) and Evan Bayh (D-IN) in introducing bipartisan legislation today creating a special trade prosecutor to crack down on countries like China, who are violating trade laws that are costing U.S. manufacturing jobs.

The bill would create a special trade prosecutor to police the nation’s trading partners, and protect U.S manufacturers from unfair trade practices which are creating record high trade deficits. The special trade prosecutor would also have the authority to recommend the prosecution of cases before the World Trade Organization.

Examples of China’s unfair trade practices include: its undervaluing of its currency which allows China to sell more goods in the U.S. while making American products artificially more expensive in China; illegal government subsides and interest-free loans to its industries; and its lax enforcement policy towards illegal, counterfeit goods such as U.S. auto parts.

As a result, the trade deficit with China is now the largest the U.S. has with any country in the world. China exports five products to the U.S. for every one product the U.S. ships to them. China’s policies have also cost the U.S. economy 1.5 million jobs between 1989 and 2003.

“We are losing manufacturing jobs as a direct result of China’s policies,” Stabenow said. “We need to get tough with China and say enough is enough. A special trade prosecutor will have the power to stand up for our manufacturers and fight on their behalf to make sure China’s following the rules.”

“It is vitally important America begin to fight back against trade abuses, particularly those committed by China,” Graham said. “Our goal is to create a focus and vehicle which helps the American business community battle unfair, overseas competition. It’s time to bring out into the open and aggressively deal with a pattern of trade abuse which has hurt our ability to compete on a fair, level playing field.”

“The world trading system cannot work if we don't enforce the rules,” Bayh said. “Right now, the U.S. Trade Representative is stretched thin with small budgets that keep it from mounting the aggressive defense we need. This legislation will provide the USTR with the resources it needs to identify trade violations, negotiate with other countries to stop these violations, and if necessary, bring cases against these nations to stop unfair trade. This is how the system is supposed to work and we're going to insist it does just that.”

“From 1989 to 2003 Michigan lost over 51,000 jobs due to China’s policies. These job losses are hurting all of our manufacturers, from apple juice and auto parts, to clothing and furniture.” Stabenow said. “We need to enforce our trade agreements and save American jobs.”

Creating the post of special trade prosecutor is a major element in Stabenow’s jobs bill, S.14, the “Fair Wage, Competition and Investment Act of 2005,” which she introduced as part of a Senate Democratic leadership package of legislation in January.

Among its other job creation and retention provisions, Stabenow’s bill also creates jobs by funding road and water infrastructure projects across the country, retrains workers who have lost their jobs due to offshoring, and expands investment in research and technology.