Casey: Currency Bill Aimed At Punishing Cheating China

Sen. Bob Casey (D-Pa.) spoke to reporters ahead of a key vote later today in the Senate on a bill to crack down on alleged currency manipulation by the Chinese government.

Casey said that Chinese officials must learn that they won’t get away with devaluaing their Yuan. 

“It’s time to vote and act to let the officials in China know there are consequences to cheating,” Casey said during a conference call.

Proponents of the legislation argue that over the past decade China has manipulated its currency and maintained trade policies that have harmed the U.S economy.

“We’ve lost hundreds and hundreds of thousands of jobs in the past decade and many are attributable directly to China’s currency policies,” Casey said.

The Senate bill, which has bipartisan support, would impose tariffs on Chinese imports and allow easier investigations into currency manipulation.

Not everyone is happy with the bill, however.

Around 50 U.S industry groups have vocally protested it and the White House has yet to endorse it. 

Some are worried that the legislation would lead to a trade war with China. 

Casey, however, has no such concern. 

“China would be wise to play by the rules,” he said. “The United States still has quite a mark on China, which they’re interested in so I would hope they wouldn’t overreact to it. I am not concerned by that. I am more concerned that we do nothing.” 

Senators urge passage of Colombia Free Trade Agreement

Today the Brookings Institution held a discussion on “The Economic and National Security Implications of the U.S.-Colombia Free Trade Agreement,” featuring addresses by Senators Chuck Grassley (R-Iowa) and Kit Bond (R-Mo.). Both senators advocated passage of the agreement, with Grassley emphasizing that there was “no downside.” He supported his claim by stating that 39 of the top 50 U.S. newspapers have published editorials in favor of the agreement, while the other 11 have not expressed opinions and none have said that Congress’s refusal to vote on the issue and put it in “cold storage” was favorable.

Grassley said that with U.S. exports accounting for 40 percent of economic growth last year, the nation should do everything in its power to increase exports--especially in the face of a declining economy. Bond displayed a chart that demonstrated that the U.S. pays 5 to 35 percent in duties on all exports to Colombia, while Colombia pays zero to 4 percent on its exports to the U.S. If the agreement were passed, Bond said, the U.S. would no longer pay any tariffs on items like automobiles, furniture, fuel and coal, cotton, metal products, and computer products.

The senators addressed concerns about violence in Colombia, especially towards union members, that some opponents of the agreement have cited as a reason to delay its passage. Grassley said that President Uribe has made “massive strides” towards decreasing violence, and Bond said that murders have decreased by 40 percent from 2001 to 2007, and 80 percent among union members. Grassley said that there is “no reason” that striking down the agreement would reduce violence, and that it might do the opposite by creating more job opportunities.

When asked about the possibility of waiting for a broader free trade agreement negotiated by the World Trade Organization, Bond said that “ultimately we’d love to see the WTO function,” but the current bilateral agreement is “the best we’ve got.” Grassley added, “if you’re for free trade, you take it wherever you can get it.”