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Utica, NY – Today, U.S. Rep. Michael Arcuri (NY-24) was joined by House Committee on Ways and Means Chairman Sandy Levin and representatives from the local manufacturing and business community to discuss legislation that would level the playing field for U.S. manufacturers struggling to compete in the global market because of China’s unfair trade practices.  The Currency Reform for Fair Trade Act (H.R. 2378), which passed in the House on Wednesday evening, would hold China accountable for the manipulation of its currency and demonstrate that the United States will not tolerate  unfair and illegal practices in foreign markets that have cost millions of American jobs.

Passage of this legislation came the day after Arcuri joined Chairman Levin and other colleagues in calling on the President to enforce international trade laws to stop China’s illegal subsidies for green technology.

“China is without a doubt undercutting our domestic manufacturing base by devaluing its currency and dumping products into our market,” said Congressman Arcuri.  “Our manufacturers aren’t seeking a handout or asking for any unfair advantage, they’re just looking for a level playing field so that they can compete internationally.  Chairman Levin and I feel very strongly that countries that refuse to play by the rules and engage in currency manipulation should be held accountable.  Passing the Currency Reform for Fair Trade Act and addressing China’s use of currency manipulation is the single most important way we can spur job creation in domestic manufacturing.  Today, we’re standing up for American jobs and businesses.”

“U.S. workers and businesses can compete if the playing field with China is level, and because of the work of Mike Arcuri, the U.S. House approved landmark legislation to safeguard U.S. industries and U.S. jobs from China’s currency manipulation,” said Rep. Sander Levin, Chairman of the Committee on Ways and Means.  “Standing up for U.S. jobs and forcing China to play by the rules is vital to New York and throughout our nation’s manufacturing base.”

The Currency Reform and Fair Trade Act enables the U.S. Department of Commerce to investigate foreign government currency practices and makes it clear that under U.S. trade remedy laws additional tariffs can be imposed to offset the effects of a “fundamentally undervalued” currency.  These tools can be used when the U.S. International Trade Commission determines that an unfair practice has caused or threatens to cause material injury to U.S. companies and workers.  

China’s currency manipulation is a major cause of the growing U.S. trade deficit, which has risen by $186 billion since 2001.   By pegging its currency, the renminbi (RMB), to the U.S. dollar at a fixed exchange rate, China is able to maintain its currency at a devalued rate.  Economists estimate that this exchange rate undervalues the RMB anywhere between 25 to 40 percent, essentially providing a subsidy to Chinese companies and unfairly disadvantaging foreign competitors.  Because of this currency manipulation U.S. exports to the country cannot compete with their low-priced Chinese equivalents, and domestic American producers are similarly disadvantaged in the face of subsidized Chinese imports.

Arcuri added, “Since China joined the World Trade Organization in 2001, 2.4 million U.S. jobs have been lost or displaced—4,800 of which came from the 24th District.  If China stopped undervaluing its currency, it would create 500,000 manufacturing jobs and cut our trade deficit by as much as $100 billion each year.”

Arcuri has long been critical of unfair trade practices by foreign governments, which have put domestic manufacturers at a competitive disadvantage.  The Coalition for a Prosperous America gave him an ‘A’ for his record on balancing our trade deficit, neutralizing foreign unfair trade practices, and driving the U.S. to craft a smart economic strategy.

Michael Stumo, CEO of the Coalition for a Prosperous America said, “CPA rated every member of the House based upon their actions, not their words, in the last three Congresses. Our manufacturing members know that they cannot hire employees or pay taxes without first having a market to sell their products.  Congressman Arcuri's recent vote to approve a bill that will neutralize unlawful currency manipulation by China and other countries is one of several pro-American business actions that resulted in his ‘A’ grade.  We need more members of Congress that understand the economic imperative to balance trade so we can create full employment and grow our economy.”

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