STATEMENT

Contact: Tracy Cullen
(202) 974-5282
Email: tcullen@plasticsindustry.org

SPI STATEMENT ON THE "UNITED STATES FAIR CURRENCY PRACTICES ACT OF 2007"

Bill Would Offer Relief to U.S. Manufacturers Harmed by Unfair Currency Practices

WASHINGTON, D.C. (March 8, 2007)—On March 7, 2007, Senators Jim Bunning (R-KY) and Debbie Stabenow (D-MI) introduced the "Fair Currency Act of 2007." The bill strengthens existing laws to combat distorted exchange-rate policies by providing U.S. manufacturers injured by unfair currency practices with access to relief under U.S. trade laws. The bill also directs the Treasury Department to identify and take action against those trading partners whose currencies are "fundamentally misaligned" with general macroeconomic conditions. Co-sponsors of the bill include Senators Evan Bayh (D-IN); Olympia Snowe (R-ME); Carl Levin (D-MI); and Robert Casey (D-PA). The new bill is a companion to the "Fair Currency Act of 2007" (H.R. 782) introduced by Representatives Tim Ryan (D-OH) and Duncan Hunter (R-CA) in the House of Representatives.

SPI President William R. Carteaux issued the following statement:

"The U.S. plastics industry has for too long felt the adverse impact of China's unfair currency practice. The Society of the Plastics Industry (SPI) applauds the leadership of Senator Bunning and Senator Stabenow for addressing our distorted exchange-rate policies. Our trading partners have been allowed to maintain unfair currency practices to the detriment of U.S. manufacturers. While China stands out as the trading partner whose exchange-rate practices are causing the most harm to U.S. interests, China is not alone in the use of such policies to sustain strong export growth and stem U.S. imports into their markets.

"Plastics manufacturing is a technologically-advanced and capital-intensive industry able and willing to compete in the global marketplace. However, SPI members have for years competed on an uneven playing field, where countries like China are providing an unfair advantage to their exporters by maintaining an artificially low level of their currencies. Along with high natural gas and energy prices, this has been an external pressure that has unnecessarily burdened the industry's competitiveness.

"Senator Bunning and Senator Stabenow have offered a legislative approach that tackles both the global macroeconomic and trade impact of problematic exchange-rate practices. Treasury has the means to objectively determine when a country's exchange-rate practice warrants a heightened level of scrutiny, and U.S. manufacturers have remedies from any damage such practices cause in the U.S. market. Congressional action to address the problem of currency misalignment is long overdue. Prolonged inaction will only lead to more manufacturing job losses and further erosion of our domestic manufacturing base.

"On behalf of the plastics industry, I commend Senators Bunning, Stabenow, Bayh, Snowe, Levin and Casey for their commitment to U.S. manufacturers. With this bill, they demonstrate a true understanding of how important strong enforcement of U.S. trading rights is to our nation's global competitiveness. Michigan, Pennsylvania and Indiana are among the largest states for plastics manufacturing in this country and the many SPI members from these states will undoubtedly welcome the leadership of their senators on this critical issue. We need true champions of manufacturing, like Senator Bunning, Senator Stabenow and their fellow co-sponsors of the Fair Currency Act, in Washington."

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Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.1 million workers and provides nearly $341 billion in annual shipments.

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