The Alliance for American Manufacturing (AAM) endorsed legislation intending to hold China accountable for its practice of currency manipulation.
The bill was introduced by a bipartisan group of senators led by:
• Sherrod Brown (D-OH)
• Chuck Schumer (D-NY)
• Lindsey Graham (R-SC)
• Olympia Snowe (R-ME)
• Debbie Stabenow (D-MI)
• Jeff Sessions (R-AL)
• Robert Casey (D-PA)
• Richard Burr (R-NC)
AAM Executive Director Scott Paul sent a letter to the sponsors of the Currency Exchange Rate Oversight Act of 2011 highlighting the economic benefits of passing currency legislation.
"The decimation of our middle-class, our manufacturing sector, and the American economy as a whole has come in large part because developing nations like China have used illegal currency manipulation and other aggressive, mercantilist tactics to tilt the playing field in their favor," Paul said in his letter. "This common-sense legislation would utilize our existing trade laws to provide a remedy for China’s market-distorting, job-killing practice of currency manipulation.”
Paul sought to debunk a number of “unsupported allegations about the dangers of enforcing our rights in international trade,” adding, “Frankly, we are stunned that any organization would want to tie our hands behind our backs when faced with a mercantilist trade policy of a communist government that inflates dangerous global imbalances.”
Data released this week found that 2.8 million American jobs were lost or displaced over the last decade due to the growing U.S. trade deficit with China – fueled by currency manipulation.
AAM provided its estimates of what bringing the yuan to its equilibrium level – a 28.5% appreciation – would result in significant economic benefits for the U.S. economy, including:
• creating up to 2.25 million American jobs
• increasing the U.S. GDP by $285.7 billion (1.9%)
• reducing the U.S. annual trade deficit by $190.5 billion
• creating an annual deficit reduction of $71.4 billion, or between $621 to $857 billion over 10 years, if sustained
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