Labor & Employment Law

Commerce Flubs Currency Decision, Now It?s Up to Congress

By James Parks

The AFL-CIO is disappointed the U.S. Department of Commerce today rejected arguments that China’s undervalued currency acts as an export subsidy. 

We agree with Alliance for American Manufacturing (AAM) Executive Director Scott Paul, who said in a statement:

It’s now up to Congress to pass legislation to strengthen and modernize our trade laws so that the devastating impact of currency manipulation can be factored into penalties for subsidies and dumping.  Our workers and businesses were promised a level playing field. Unless the mercantilist policies of China and other nations are challenged at every level, we will continue to pile up trade deficits and job losses. 

The Economic Policy Institute (EPI) estimates that China’s currency manipulation and the trade deficit it creates cost 2.4 million U.S. jobs between 2001 and 2008. Congress is expected to vote as early as next week on two bills, H.R. 2378 in the House and S. 3134 in the Senate, that would give the government broader powers to act against China?s currency manipulation. The House Ways and Means Committee also has scheduled a major hearing on China’s currency on Sept. 15.

Full post as published by AFL-CIO NOW BLOG on August 31, 2010 (boomark / email).