U.S. Rep. Dave Camp, R-MI, voted for H.R. 2378, the Currency Reform for Fair Trade Act, sending a clear signal to China and the Obama Administration that Congress would no longer tolerate China’s undervaluing its currency.

“This legislation sends a clear signal to China that Congress’s patience is running out but does not give China an excuse to retaliate against U.S. companies and their workers,” Camp said. “If China retaliates against this bill at this stage, I fully expect that USTR – and the Administration as a whole – will act swiftly and aggressively to pursue every option available, including through action at the WTO. China’s posturing and bad behavior cannot dictate our trade policy.
“This legislation also sends an important signal to the Administration: it is time to produce results. The Administration must step up its bilateral and multilateral efforts and set a clear timeline for action. The Administration should work to ensure that the issue of global imbalances – which naturally includes China’s currency policy – is prominently on the agenda at the November G-20 meetings in Seoul. We should also reengage in bilateral investment treaty negotiations.”
Camp held that the legislation, however, missed an opportunity to address larger issues with regard to the U.S. trade imbalance with China.

“It’s not that China’s currency policy is not a problem or priority – it’s just that there are far larger issues with regard to China and our trade imbalance. Issues like intellectual property rights, indigenous innovation, export restraints on rare earth minerals and other items, and a host of other non-tariff barriers are wreaking havoc on American employers, their workers, and our economy.

“Despite my disappointment about the lack of a broader trade agenda and the lack of action on these other concerns with respect to China, it would be an enormous mistake to give up completely on addressing China’s currency policy. We all agree that China’s currency is fundamentally misaligned and that China must take prompt action to allow market forces to determine the value of its currency."

Camp is the highest ranking Republican on the Ways and Means Committee, which has jurisdiction over trade policy.