House OKs Ryan bill aimed at currency reform
Staff report
washington
U.S. Rep. Tim Ryan of Niles, D-17th, scored a major legislative victory this week with the passage of his Currency Reform for Fair Trade Act.
The bipartisan bill, which would allow the U.S. to crack down on Chinese currency manipulation, cleared the House with a 348-79 vote Wednesday evening. Introduced by Ryan and U.S. Rep. Tim Murphy of Pennsylvania, R-18th, last year, the legislation had 159 co-sponsors in the House and garnered support from domestic manufacturers, the United Steelworkers union and several trade organizations including the American Iron and Steel Institute and the Alliance for American Manufacturing.
The bill directs the U.S. Department of Commerce to treat foreign currency manipulation as an illegal subsidy and respond by imposing countervailing duties on imports from countries that undervalue their currency.
“This was a very courageous step on behalf of the Democrats in Congress,” Ryan said in a press- conference call Thursday. “This will drive investment back into the U.S.”
The undervaluation of China’s currency has promoted outsourcing of American manufacturing jobs to China and undercut small and medium-sized manufacturers who are unable to compete with artificially cheaper Chinese-made goods, Ryan said.
Ohio Democrats including U.S. Reps. Charlie Wilson, D-6th, and Betty Sutton, D-13th, joined Ryan in heralding the legislation as a significant step toward revitalizing the American manufacturing sector.
“For too long, manufacturers have suffered from an unfair disadvantage,” Wilson said. “It is one of the major factors that have caused us to be in this recession for as long as we have.”
The legislation faces significant hurdles in the Senate, where opponents of the bill have argued that it will lead to higher prices for American consumers and heightened tensions with China.
Ryan said he expects the Senate will vote on the issue after election season this year.
“I think one of the things the Senate has to deal with is the level of support in the House,” he said. “We are going to put a lot of pressure on them to get this done.”
China said Thursday that the bill violates the World Trade Organization’s free-trade rules and warned Washington that the measure could harm bilateral ties.