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AISI Opposes Decision to Delay Naming China a Currency Manipulator
Apr. 13, 2010 AISI has issued a statement expressing disappointment regarding the Obama Administration’s announcement that it would delay a decision on whether to declare China a currency manipulator, which had been expected by April 15.
“AISI is disappointed that U.S. Treasury Secretary Timothy F. Geithner has once again side-stepped his obligation to address China’s currency manipulation as mandated by law,” said AISI President and CEO Thomas J. Gibson, in the recently issued statement. “The Congress directed Treasury to issue a report twice a year identifying those countries manipulating their currencies in order to allow for orderly negotiations to address this unfair trade practice.
“There is a broad consensus among economists that China is acting to artificially suppress the value of its currency, giving an effective export subsidy to Chinese goods in markets around the world and putting U.S. exports at an unfair competitive disadvantage,” Gibson added. “Acknowledging this consensus view would allow for honest negotiations with the Chinese government to remove this significant impediment to U.S. exports and create needed jobs in this country.
“The Administration needs to act now to make it clear to China that the status quo is unacceptable. In accordance with existing statutory requirements, the Treasury Department should be moving forward now on serious negotiations with China, and the Commerce Department should be treating Chinese currency policy for what it is—an export subsidy that is subject to countervailing duty law,” Gibson continued, stressing that Congress needs to enact an effective trade remedy tool to deal with this currency-misalignment issue.
“American manufacturers and their workers are being injured by this unfair practice. We cannot continue to give China and other governments a pass on this critical issue,” he concluded.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the material of choice. It also plays a lead role in the development and application of new steels and steelmaking technology. The Institute comprises 25 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.