PMA Participates in Trade Investigation of Chinese Currency

PMA has joined the Fair Currency Alliance, a group of trade associations and unions representing manufacturing, agriculture and labor, to urge the Bush Administration to address China’s undervalued currency.  In this effort, the coalition has retained the law firm Collier Shannon Scott to develop a “Section 301 Petition” to the Administration to investigate the issue of Chinese currency manipulation. The firm has extensive experience and a strong record in trade law, particularly Section 301 cases.

The Trade Act of 1974 allows the U.S. Trade Representative (USTR) to investigate unfair trade practices and take action against countries that violate trade agreements. Many economists and members of Congress believe that the Chinese currency, the yuan, would rise in value by up to 40 percent if it were market-determined.

The USTR has the ability to deny the petition. However, in a recent speech made in Toledo, OH, President Bush addressed the issue of foreign currency manipulation by saying, “We expect countries like China to understand that trade imbalances mean trade is not balanced and fair. They have got to deal with their currency.”

PMA will continue to monitor and influence this issue. If you have any questions, contact Justin Ketchem at 216/901-8800 or jketchem@pma.org.

Precision Metalforming Association, 6363 Oak Tree Blvd., Independence, Ohio 44131-2500    Phone: 216-901-8800  Fax: 216-901-9190 
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