Washington, DC, February 13, 2006--Senators Lindsey Grahm (R,SC) and Byron Dorgan (D,ND) introduced a bill Thursday that would revoke the trade status that makes China eligible for low tariff rates on U.S. imports.
The Senators said that the bill would provide more leverage to force China to end unfair trade practices, including currency manipulation, subsidized exports and intellectual property rights violations.
The bill would remove the permanent normal trade relations designation given to all U.S. trading partners that are members of the WTO and require Congress to renew the designation on an annual basis. China could then face higher tariffs on exports if Congress ever voted against renewing it.
U.S. Trade Representative Rob Portman said that stripping China of PNTR would "do nothing to help the trade deficit. In fact, it could hurt political and commercial relations with China."
Grahm and Senator Charles Schumer (D, NY) will travel to China in March to meet with political and business leaders on the issue of currency manipulation.
Senator Grahm commented that the restrictions on textiles and apparel that took effect last month were helpful, "somewhat, but textiles are just a small part of the puzzle." Broader efforts are need to begin to resolve the situation overall.
