For Immediate Release
February 14, 2008 |
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FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961
Mobile: 202.225.0471 |
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Congress and Administration Must Enforce Rules of Trade |
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$711 billion trade deficit hampers economic growth |
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(Washington D.C.)- House Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Ways and Means Trade Subcommittee Chairman Sander M. Levin (D-MI) issued the following joint statement regarding the 2007 annual trade deficit figures released by the U.S. Department of Commerce today:
“Our massive trade deficit reflects years of a passive, misguided trade policy by the Bush Administration. Too often, our trading partners are allowed to break international rules, to keep U.S. exports out of their markets, and to engage in unfair trade practices. We need a more assertive approach to the enforcement of our international agreements and trade laws.
“For example, China and several other trading partners have been manipulating their currencies to gain an unfair competitive advantage, in a flagrant and longstanding breach of international rules. These illegal practices have been estimated to contribute roughly $130 billion to $180 billion to the U.S. trade deficit each year. Due in part to its currency and other unfair trade practices, our bilateral trade deficit with China broke a new record in 2007, at $256 billion (up from $233 billion in 2006). China now accounts for 36 percent of the total U.S. trade deficit.
“More generally, the Bush Administration has failed to enforce the commitments our trading partners made as WTO Members. The Clinton Administration filed an average of 11 WTO cases each year. The Bush Administration has filed an average of just three per year. The result has been fewer opportunities for U.S. exporters to sell their goods and services in foreign markets. In the next two months, the Committee will be looking into ways to improve enforcement of our international agreements and our domestic trade laws.
“We are pleased that the Administration has improved its enforcement of international rules and U.S. trade laws over the last 15 months, including by beginning to enforce U.S. anti-subsidy laws against imports from China. In addition, several important WTO cases were filed in 2007, and there has been some progress in reducing the trade deficit. But these steps are insufficient. Much more needs to be done to open foreign markets and level the international playing field.”
Background
The U.S. trade deficit in 2007 was $711.6 billion, according to figures released today by the U.S. Department of Commerce. Before 2004, the U.S. trade deficit never exceeded 5 percent of Gross Domestic Product (GDP) (going back to 1960). Since 2003, the U.S. trade deficit has exceeded 5 percent each year – and stood at 5.1 percent of GDP in 2007.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
