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AISI Disappointed in ‘Missed Opportunity’ to Confront Unfair Trade Policies
07/13/2010 - China’s undervalued currency continues to harm U.S. manufacturers, according to the American Iron and Steel Institute and its President and CEO Thomas J. Gibson. He recently offered a comment on the Administration’s decision to not declare China a currency manipulator.
China’s undervalued currency continues to harm U.S. manufacturers, according to the American Iron and Steel Institute (AISI) and its President and CEO Thomas J. Gibson. He recently offered a comment on the Administration’s decision to not declare China a currency manipulator.
“We are very disappointed with Treasury Secretary Geithner’s decision to ignore the clear evidence that China is manipulating its currency to gain an unfair advantage in international trade,” Gibson stated. “The Treasury report acknowledges that the renminbi is undervalued, but fails to take into account the fact that this unfair trade practice continues to harm America’s manufacturers, their workers, and communities. Many economists have estimated that the renminbi is undervalued by as much as 40%, providing a significant export subsidy to Chinese products in markets around the world.”
“China’s recent promise of increased exchange rate flexibility has produced only a very modest adjustment in the value of its currency,” he continued. “If the Administration is not prepared to act now under the existing law to address this serious issue, Congress must change the law to give U.S. industries the tools they need to defend themselves against the adverse effects of foreign currency manipulation.
“We have already seen millions of manufacturing jobs leave this country as a result of Chinese unfair trade practices. It is time to put jobs back in American hands and give our manufacturing industries the opportunity to compete on a level playing field,” Gibson 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 preferred material of choice. The Institute also plays a lead role in the development and application of new steels and steelmaking technology. It comprises 23 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.
