Bill Owens on Free Trade Democratic Representative (NY-23)

Entice Canadian business to manufacture in New York

Impose tariffs against countries which manipulate currency.

• Amends the Tariff Act of 1930 to include as a "countervailable subsidy" requiring action under a countervailing duty or antidumping duty proceeding the benefit conferred on merchandise imported into the US from foreign countries with fundamentally undervalued currency.
• Defines "benefit conferred" as the difference between:
  1. the amount of currency provided by a foreign country in which the subject merchandise is produced; and
  2. the amount of currency such country would have provided if the real effective exchange rate of its currency were not fundamentally undervalued.
• Determines that the currency of a foreign country is fundamentally undervalued if for an 18-month period:
  1. the government of the country engages in protracted, large-scale intervention in one or more foreign exchange markets
  2. the country's real effective exchange rate is undervalued by at least 5%
  3. the country has experienced significant and persistent global current account surpluses; and
  4. the country's government has foreign asset reserves exceeding the amount necessary to repay all its debt obligations.

[Explanatory note from Wikipedia.com "Exchange Rate"]:

Between 1994 and 2005, the Chinese yuan renminbi was pegged to the US dollar at RMB 8.28 to $1. Countries may gain an advantage in international trade if they manipulate the value of their currency by artificially keeping its value low. It is argued that China has succeeded in doing this over a long period of time. However, a 2005 appreciation of the Yuan by 22% was followed by a 39% increase in Chinese imports to the US. In 2010, other nations, including Japan & Brazil, attempted to devalue their currency in the hopes of subsidizing cheap exports and bolstering their ailing economies. A low exchange rate lowers the price of a country's goods for consumers in other countries but raises the price of imported goods for consumers in the manipulating country.

Sponsored imposing import fee on countries with undervalued currency.

Congressional Summary:Amends the Tariff Act of 1930 to include a countervailing duty or antidumping duty on merchandise imported into the US from foreign countries with fundamentally undervalued currency.

• Defines the [amount subject to the import fee as] ) the amount of currency such country would have provided if the real effective exchange rate of its currency were not fundamentally undervalued.
• Determines that the currency of a foreign country is fundamentally undervalued if for an 18-month period the government of the country engages in protracted, large-scale intervention in one or more foreign exchange markets; and the country has experienced significant and persistent global current account surpluses; and the country's government has foreign asset reserves exceeding the amount necessary to repay all its debt obligations falling due within the coming 12 months.

Opponent's argument against bill: (by the Club for Growth)We urge all House members to not co-sponsor the protectionist Currency Reform for Fair Trade Act. This proposal would make it easier for the federal government to slap

Bound under state commitment to CAFTA.

States' commitments under CAFTA:

Americans for Legal Immigration PAC (ALIPAC) compiled a list of the status of each of the 50 states with regards to CAFTA procurement. For states that have rescinded their commitment, we infer that the incumbent governor strongly opposes CAFTA (because the state made a commitment and then un-made it). For states that declined to commit, we infer that the incumbent governor somewhat opposes CAFTA. For states that committed, we infer that the incumbent governor supports CAFTA.

CAFTA is the Central American Free Trade Agreement. CAFTA expands NAFTA (the North American Free Trade Agreement, between the U.S., Canada, and Mexico) to five Central American nations (Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua), and the Dominican Republic. It passed Congress on July 27, 2005.

Opposition to CAFTA procurement rules (by Public Citizen): Should an international trade agreement determine how we are allowed to spend our domestic tax dollars? Prior to the passage of CAFTA, the majority of state governments agreed: Subjecting decisions about how to spend state taxpayer dollars to second-guessing by foreign trade tribunals is a bad idea! As a result, a bi-partisan group of governors withdrew their initial agreement to bind their states to comply with CAFTA's procurement rules. Many other governors simply avoided binding their states to CAFTA's procurement rules in the first place. Common state economic development and environmental policies are prohibited by trade agreement procurement rules include:

• Measures to stop the offshoring of state jobs;
• "Buy Local" or "Buy America" policies;
• Preferences for recycled content, renewable energy, and alternative fuel vehicles.

Rated 63% by the USAE, indicating a mixed record on trade.

Ratings by USA*Engage indicate support for trade engagement or trade sanctions. The organization's self-description: "USA*Engage is concerned about the proliferation of unilateral foreign policy sanctions at the federal, state and local level. Despite the fact that broad trade-based unilateral sanctions rarely achieve our foreign policy goals, they continue to have political appeal. Unilateral sanctions give the impression that the United States is 'doing something,' while American workers, farmers and businesses absorb the costs."

USA*Engage at Work
• Developing the Case: USA*Engage explains the benefits of economic engagement, and the high cost of sanctions for American exports, investment and jobs.
• Education: We recruit respected foreign policy and economic experts to speak out against sanctions, actively engage the media and provide outreach to key target states and Congressional districts.
• Contacting Government Officials: USA*Engage directly contacts Congressional, Administration, state and local officials.

VoteMatch scoring for the USA*Engage ratings is as follows :

• 0%-49%: supports trade sanctions;
• 50%-74%: mixed record on trade engagement;
• 75%-100%: supports trade engagement.