NCTO urges Floor Vote on Currency Reform for Fair Trade Act

NCTO (National Council of Textile Organizations) applauded Ways and Means Chairman Sander Levin (D-MI) for increasing pressure on the Chinese government by examining the country’s exchange rate policy and the damage it has inflicted on the U.S. and global economy during a full committee hearing. NCTO noted that the hearing is the fourth this year to examine China’s currency practices.

“It is evident by the $35 billion textile and apparel U.S./China trade deficit that undervaluation of the renminbi (RMB) promotes predatory export practices. Currency manipulation allows countries like China to flood the markets of countries like the United States with artificially cheap imports creating dangerous trade deficits, surging overseas debt, massive job losses, and the continuing erosion of the U.S. manufacturing base and its high wage workforce. After losing 2.4 million manufacturing jobs over the past decade, Congressional approval of H.R. 2378 is long overdue,” stated Cass Johnson, President of NCTO.

Johnson went onto say, “Hearings alone will not compell China to begin to revalue the RMB. It is clear that diplomatic efforts have failed to convince China to revalue its currency in a meaningful way. Congress has a responsibility to American manufacturers and their workers, and therefore must vote to approve H.R. 2378, the Currency Reform for Fair Trade Act.” In order to ensure real export gains, the U.S. government must understand that currency manipulation and other subsidy programs employed by China and others have a real and detrimental impact on the ability of U.S. companies to export their goods and remain globally competitive.

Johnson added, “The U.S. manufacturing sector cannot rebound, and therefore the U.S. economy cannot regain its strength while U.S. jobs and U.S. production continue to be hijacked by China through illegal currency manipulation schemes.”

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