STATEMENT

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

SPI STATEMENT ON THE "FAIR CURRENCY ACT OF 2007"

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

WASHINGTON, D.C. (February 13, 2007)—On January 31, 2007, Representatives Tim Ryan (D-OH) and Duncan Hunter (R-CA) introduced the "Fair Currency Act of 2007" (H.R. 782). 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. With 31 co-sponsors thus far, H.R. 782 enjoys broad bipartisan support.

SPI President William R. Carteaux issued the following statement:

"The Society of the Plastics Industry (SPI) applauds the leadership of Congressmen Ryan and Hunter on this longstanding crisis in U.S. trade relations. For too long, 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 imports from the United States.

"The U.S. plastics industry has for too long felt the adverse impact of China's unfair currency practice. 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. 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.

"Congressmen Ryan and Hunter have offered a legislative approach that addresses the trade impact of problematic exchange-rate practices. With this legislation, they demonstrate a true understanding of how important strong enforcement of U.S. trading rights is to our nation's global competitiveness. On behalf of the plastics industry, I commend Representatives Ryan and Hunter, as well as the other 31 members of Congress who have already co-sponsored this bill, for their commitment to U.S. manufacturers. I strongly encourage other Congressmen to endorse H.R. 782 and to swiftly enact this bill into law.

"Passage of a law to remedy injurious exchange-rate misalignment remains a key priority for SPI, and we will continue to partner with our industry allies in the China Currency Coalition to achieve this goal."

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