NEWS RELEASE

Committee on Energy and Commerce
Rep. John D. Dingell, Chairman

Administration Refuses to Act on Congressional Concerns about Currency Manipulation

Dingell Calls for Stronger Currency Law

WASHINGTON, D.C. – A semi-annual report to Congress on international economic and exchange rate policies released yesterday by the Department of the Treasury concluded that none of our country’s major trading partners can be classified as currency manipulators.

Many Members of Congress have expressed frustration with the Bush Administration’s lack of effort to address concerns about unfair currency practices by our trading partners, particularly China and Japan, and are calling for a stronger currency law.

“I am appalled by the Administration’s continued refusal to cite China and Japan as currency manipulators in spite of abundant evidence to the contrary,” said Rep. John D. Dingell (D-MI), Chairman of the House Committee on Energy and Commerce. “For too long, these countries have been permitted to manipulate their currencies to the detriment of U.S. workers and industry. This latest rebuke affirms my conviction that the Congress should pass bipartisan legislation to aggressively address unfair foreign currency practices.”

Current law requires the Department of the Treasury to determine whether a country intentionally manipulates the value of its currency to prevent effective balance of payments adjustments or gain an unfair competitive advantage in international trade. The Treasury Department maintains in its June 2007 report that it was unable to make a positive determination in either case against China.

The Treasury report notes increases in China and Japan’s current account balances, bilateral trade deficits with the United States, and holdings of foreign currency reserves – three prime indicators of currency manipulation.

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