S.Amdt. 4768

SA 4768. Mr. BROWN of Ohio (for himself and Ms. Snowe) submitted an
amendment intended to be proposed to amendment SA 4753 proposed by Mr.
Reid (for himself and Mr. McConnell) to the bill H.R. 4853, to amend
the Internal Revenue Code of 1986 to extend the funding and expenditure
authority of the Airport and Airway Trust Fund, to amend title 49,
United States Code, to extend authorizations for the airport
improvement program, and for other purposes; which was ordered to lie
on the table; as follows:

On page 72, after line 26, insert the following:

TITLE VIII--CURRENCY VALUATION

SEC. 801. SHORT TITLE.

This title may be cited as the ``Currency Reform for Fair
Trade Act''.

SEC. 802. CLARIFICATION REGARDING DEFINITION OF
COUNTERVAILABLE SUBSIDY.

(a) Benefit Conferred.--Section 771(5)(E) of the Tariff Act
of 1930 (19 U.S.C. 1677(5)(E)) is amended--
(1) in clause (iii), by striking ``and'' at the end;
(2) in clause (iv), by striking the period at the end and
inserting ``, and''; and
(3) by inserting after clause (iv) the following new
clause:
``(v) in the case in which the currency of a country in
which the subject merchandise is produced is exchanged for
foreign currency obtained from export transactions, and the
currency of such country is a fundamentally undervalued
currency, as defined in paragraph (37), the difference
between the amount of the currency of such country provided
and the amount of the currency of such country that would
have been provided if the real effective exchange rate of the
currency of such country were not undervalued, as determined
pursuant to paragraph (38).''.
(b) Export Subsidy.--Section 771(5A)(B) of the Tariff Act
of 1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the
end the following new sentence: ``In the case of a subsidy
relating to a fundamentally undervalued currency, the fact
that the subsidy may also be provided in circumstances not
involving export shall not, for that reason alone, mean that
the subsidy cannot be considered contingent upon export
performance.''.
(c) Definition of Fundamentally Undervalued Currency.--
Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is
amended by adding at the end the following new paragraph:
``(37) Fundamentally undervalued currency.--The
administering authority shall determine that the currency of
a country in which the subject merchandise is produced is a
`fundamentally undervalued currency' if--
``(A) the government of the country (including any public
entity within the territory of the country) engages in
protracted, large-scale intervention in one or more foreign
exchange markets during part or all of the 18-month period
that represents the most recent 18 months for which the
information required under paragraph (38) is reasonably
available, but that does not include any period of time later
than the final month in the period of investigation or the
period of review, as applicable;
``(B) the real effective exchange rate of the currency is
undervalued by at least 5 percent, on average and as
calculated under paragraph (38), relative to the equilibrium
real effective exchange rate for the country's currency
during the 18-month period;
``(C) during the 18-month period, the country has
experienced significant and persistent global current account
surpluses; and
``(D) during the 18-month period, the foreign asset
reserves held by the government of the country exceed--
``(i) the amount necessary to repay all debt obligations of
the government falling due within the coming 12 months;
``(ii) 20 percent of the country's money supply, using
standard measures of M2; and
``(iii) the value of the country's imports during the
previous 4 months.''.
(d) Definition of Real Effective Exchange Rate
Undervaluation.--Section 771 of the Tariff Act of 1930 (19
U.S.C. 1677), as amended by subsection (c) of this section,
is further amended by adding at the end the following new
paragraph:
``(38) Real effective exchange rate undervaluation.--The
calculation of real effective exchange rate undervaluation,
for purposes of paragraph (5)(E)(v) and paragraph (37),
shall--
``(A)(i) rely upon, and where appropriate be the simple
average of, the results yielded from application of the
approaches described in the guidelines of the International
Monetary Fund's Consultative Group on Exchange Rate Issues;
or
``(ii) if the guidelines of the International Monetary
Fund's Consultative Group on Exchange Rate Issues are not
available, be based on generally accepted economic and
econometric techniques and methodologies to measure the level
of undervaluation;
``(B) rely upon data that are publicly available, reliable,
and compiled and maintained by the International Monetary
Fund or, if the International Monetary Fund cannot provide
the data, by other international organizations or by national
governments; and
``(C) use inflation-adjusted, trade-weighted exchange
rates.''.

SEC. 803. REPORT ON IMPLEMENTATION OF TITLE.

(a) In General.--Not later than 9 months after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to Congress a report on the
implementation of the amendments made by this title.
(b) Matters To Be Included.--The report required by
subsection (a) shall include a description of the extent to
which United States industries that have been materially
injured by reason of imports of subject merchandise produced
in foreign countries with fundamentally undervalued
currencies have received relief under title VII of the Tariff
Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this
title.
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