Stabenow Announces Clinton, Obama Cosponsor Bill to Stop Foreign Currency Manipulation

U.S. Senator Debbie Stabenow - Press Release

FOR IMMEDIATE RELEASE May 1, 2008		Contact: Press Office Phone: 202-224-4822

WASHINGTON —U.S. Senator Debbie Stabenow (D-MI) today announced that Democratic presidential candidates Sen. Hillary Rodham Clinton (D-NY) and Sen. Barack Obama (D-IL) have signed on as cosponsors of Senator Stabenow’s legislation to stop the unfair trade practice known as currency manipulation. Currency manipulation artificially lowers prices of exports from offending countries, like China, resulting in a competitive advantage over American manufacturers. The Fair Currency Act would provide U.S. manufacturers with the legal means to fight back against those companies whose governments manipulate their currency.

“American manufacturers and workers can compete with anyone in the world when the playing field is level,” said Stabenow. “I appreciate the support of both Democratic candidates in this very important fight. It’s long past time for our government to hold countries like China accountable for currency manipulation and stop making American companies compete with one arm tired behind their backs.”

The Fair Currency Act of 2007 removes subjectivity from determinations on currency valuation, injecting transparency and objectivity into this important process. Currently, there is no objective method for protecting American companies from countries such as China who manipulate their currency and as a result, artificially lower the cost of their exports.

This practice creates an unfair trade advantage that makes it nearly impossible for American manufacturers to compete in the free market. The Fair Currency Act of 2007 would provide U.S. companies that suffer due to the impact of undervalued currency the ability to seek countervailing duties, a key enforcement tool to fight back against companies whose governments seek to create an artificial advantage.

Earlier this year the Commerce Department reported that the United States trade deficit with China grew from $232.6 billion in 2006 to an all time high of $256.3 billion last year. Since 2000, the United States has lost more than 3.6 million manufacturing jobs and Michigan has lost 280,000 manufacturing jobs in the same time period.