AAM Applauds Introduction of New Bipartisan Senate Currency Bill
AAM APPLAUDS INTRODUCTION OF NEW BIPARTISAN SENATE CURRENCY BILL
AAM Letter Outlines Myths and Facts of Opposition Arguments
The Alliance for American Manufacturing (AAM) – a labor-management partnership forged by some of America’s leading manufacturers and the United Steelworkers (USW) – today endorsed legislation introduced by a bipartisan group of senators led by Sherrod Brown (D-OH), Chuck Schumer (D-NY), Lindsey Graham (R-SC), Olympia Snowe (R-ME), Debbie Stabenow (D-MI), Jeff Sessions (R-AL), Robert Casey (D-PA), and Richard Burr (R-NC) to hold China accountable for its market-distorting, job-killing practice of currency manipulation. AAM Executive Director Scott Paul sent a letter to the sponsors of the Currency Exchange Rate Oversight Act of 2011 highlighting the economic benefits of passing currency legislation.
Said Paul, “The decimation of our middle-class, our manufacturing sector, and the American economy as a whole has come in large part because developing nations like China have used illegal currency manipulation and other aggressive, mercantilist tactics to tilt the playing field in their favor. This common-sense legislation would utilize our existing trade laws to provide a remedy for China’s market-distorting, job-killing practice of currency manipulation.”
In his letter, Paul also debunks a number of “unsupported allegations about the dangers of enforcing our rights in international trade,” adding, “Frankly, we are stunned that any organization would want to tie our hands behind our backs when faced with a mercantilist trade policy of a communist government that inflates dangerous global imbalances.”
New data released this week found that 2.8 million American jobs were lost or displaced over the last decade due to the growing U.S. trade deficit with China – fueled by currency manipulation.
Said Paul, “We commend the leadership of the Senators who introduced this bill, including Senator Brown, Senator Schumer, Senator Graham, and Senator Snowe. The timing could not be more urgent.”
Bringing the yuan to its equilibrium level – a 28.5 percent appreciation – would result in significant economic benefits for our economy, including:
• The creation of up to 2.25 million American jobs;
• An increase in U.S. GDP of $285.7 billion (1.9%);
• A $190.5 billion reduction in our annual trade deficit; and
• Annual deficit reduction of $71.4 billion, or between $621 to $857 billion over ten years, if sustained.
Said Paul, “The Senate must act because the White House has refused to act. China’s currency is more undervalued today than it was last year, which means American jobs are disappearing every day. China responds to consequences, and this legislation will make a real difference for American workers and businesses.”
The Senate is expected to take up the newly introduced currency legislation in the coming weeks. The Senate approved currency legislation offered by Senators Schumer and Graham in 2005 by a vote of 67-23 – with the support of 29 Republicans. And last fall, the House passed a similar bill by an overwhelming bipartisan vote of 348-79 – with 99 Republicans supporting the measure.
The Alliance for American Manufacturing (AAM) is a unique non-partisan, non-profit partnership forged to strengthen manufacturing in the U.S. AAM brings together a select group of America’s leading manufacturers and the United Steelworkers to promote creative policy solutions on priorities such as international trade, energy security, health care, retirement security, currency manipulation, and other issues of mutual concern. For more information, please visit www.americanmanufacturing.org.