Washington, DC, September 25, 2006--The National Association of Manufacturers today urged senators to oppose S. 295, the Schumer-Graham China currency legislation, “and support any procedural motions that would prevent its passage.” The Schumer-Graham bill would impose an across-the-board 27.5 percent tariff on imports from China if the Chinese government refuses to revalue its currency.
“The NAM is widely recognized as the leader in bringing to the forefront of the public policy debate the serious effects of China’s currency manipulation on American manufacturers and workers,” said Jay Timmons, NAM Senior Vice President for Policy and Government Relations. “The extent to which the Chinese government has acted to keep its currency highly undervalued is evident in the astonishing growth of their foreign exchange reserves to nearly $1 trillion. The Chinese government is spending more than $20 billion a month to keep the value of its currency suppressed.”
However, while acknowledging that China’s continuing currency manipulation is having an adverse impact on U.S. manufacturers, Timmons said the Schumer-Graham bill would be a clear violation of World Trade Organization rules and would have far-reaching repercussions. “The NAM opposes the Schumer-Graham bill because it violates this global rules-based system that we have worked so hard to create,” Timmons said, adding that votes on S. 295 and potential procedural motions related to the bill will be considered for designation as Key Manufacturing Votes in the NAM voting record for the 109th Congress.
