Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I normally am in agreement with my friend, the gentleman from Pennsylvania, when it comes to antidumping and countervailing duty laws. We have worked together to try…
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I normally am in agreement with my friend, the gentleman from Pennsylvania, when it comes to antidumping and countervailing duty laws. We have worked together to try to improve those laws. But I disagree with him in regards to this legislation.
Madam Speaker, I disagree with the gentleman's assessment of this legislation. I think it is an inconsequential bill. I do not believe it will do very much one way or the other. It will certainly not hold China accountable. There is nothing in this bill that would hold China accountable for its violations of its international trade obligations.
So, Madam Speaker, let me try to get the Members to focus on what is in this bill and not what people who may be coming to this well say is in this bill. I would urge my colleagues to please read the legislation that is before us. It is not the original bill that was filed by the gentleman from Pennsylvania (Mr. English), a bill that was supported by the industry, that would have extended countervailing duty laws to China and nonmarket economies. Instead, what this bill does in section 2 is a ``sense of Congress.'' Now, a sense of Congress resolution is exactly that. It expresses our concerns, but takes no action.
The first section that takes any action at all in changing law is section 3, and section 3 does deal with the countervailing duty provisions. It extends countervailing duties to nonmarket economies. That is good. Countervailing duties are imposed when a country inappropriately subsidizes its products that go into international trade. And China and nonmarket economies should be held to our countervailing duty laws. Unfortunately, they are not today.
The problem is that the amended bill then puts 2 hurdles in being able to apply those countervailing duty provisions. It first does what is known as double-counting and prevents from using on the countervailing duties the import and export subsidies by the country involved. Now, that is a different standard than we have for market economies, where you only have to double-count export subsidies. The change here is dramatic, and that is why the industries that are affected by the countervailing duty statute that we would hope would help in regards to China oppose this provision.
Nu Car, which is one of the companies that asked us to apply the countervailing duty law to China, has written us in opposition to this section, because it will not help them remedy the situation of subsidized product coming from China into the United States. That is why the Committee to Support U.S. Trade Laws, the committee of business groups that have joined together in order to strengthen our antidumping and countervailing duty laws, oppose this section. It will not help companies that are hurt by subsidized, manufactured product coming into the United States. That is section 3. That is why I say, you try to help in one respect, but you take it away by putting obstacles in the way.
You also put a second test that is not currently required, a certification of compliance of international law. That is not required today for a market economy violation for us to file a countervailing duty claim. That is section 3.
Let us go to section 4. Section 4 deals with the new shipper review amendment. Well, here we have a problem with Chinese exporters who are not getting an adequate security when they come into our market. You provided a temporary fix for 3 years. We should do it permanently. It should be done permanently.
Going to section 5, section 5 talks about monitoring compliance with the People's Republic of China with international trade obligations. Read what is here. There is no action. There is review, but no action. We should not be doing this now, the review. The administration does this already. There is nothing new that is added to the requirements that we are going to be able to take action against China for violating intellectual property rights or access to market for services, or access to market for goods. We should be taking action under our safeguards in that regard. But no, there is no action at all taken in section 5. If I am wrong, please correct me on this point.
Then we move to section 6. Section 6 is probably the most egregious section in the bill: report on currency manipulation by foreign countries. Read it. It is only a couple lines. You are asking Treasury to define currency manipulation. We have already had Treasury report to us and fail to take action against China. China is manipulating its currency. We all know that. So why do we not take action against China?
No. This bill does, again, nothing in regards to China currency.
Then, in section 7, you talk about providing more money for the USTR. You are not providing more money for the USTR. The amount that you have here in authorized levels has already been provided in the appropriations bill. There is no new money here.
Then, in section 8, you talk about more money for the U.S. International Trade Commission. Again, it is equal to the amount that we have already provided through the appropriation process. There is no new money here in either section 7 or section 8.
I want to give you credit in section 9, talking about sense of Congress regarding the expansion of membership in the agreement on government procurement of the WTO. I support that section. I think we should be asking for broader participation in government procurement under the WTO. No action here again, strictly a sense of Congress.
So, Madam Speaker, I take this time to go through section by section because I challenge Members who come and speak on this bill to please speak about the facts of what is in this bill. There are only two sections that actually provide any change in law or action. One deals with countervailing duty, and I have already pointed out how there is negative along with the positive, and the other deals with a temporary fix of the exporter license issue, which is certainly not the major problem that we are having with China today.
As I said earlier, this bill is a missed opportunity. It is a missed opportunity because the overwhelming majority of the Members of this body would like to vote on a bill that would provide real relief to the problems that we have in China living up to its international trade responsibilities. That legislation just happens to be H.R. 3306, which has been introduced by the gentleman from New York (Mr. Rangel). I regret that we do not have an opportunity to debate that bill and do what is right for the people of this country in enforcing our trade rules against the People's Republic of China.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself 30 seconds to respond to the gentleman from Pennsylvania (Mr. English).
I think the gentleman pointed out that there are no sections other than the two I mentioned that are action sections in your bill. And I point out again that the double-counting provision will make the application of countervailing duties much more difficult, if not impossible, in a nonmarket economy; and that is not helpful to companies that have been hurt by subsidized products coming from China.
Madam Speaker, I yield 3 minutes to the gentleman from Washington (Mr. McDermott).
Madam Speaker, I yield myself 30 seconds just to respond to gentlewoman's comments.
Madam Speaker, there is nothing in this bill that deals with dumping and enforcement in China. There is nothing in this bill that takes action against China for currency manipulation. And there is nothing in this bill that takes action against China for intellectual property failures. On the countervailing duties, I have already commented on that.
Madam Speaker, I yield 4\1/2\ minutes to the gentleman from Michigan (Mr. Levin), the former ranking Democrat on trade, the senior member of the Ways and Means Committee.
(Mr. LEVIN asked and was given permission to revise and extend his remarks.)
Madam Speaker, I yield myself 2 minutes.
Madam Speaker, in response to my friend from Florida's (Mr. Shaw) comments on the intellectual property problems that we are having with China, and they are substantial, China is violating intellectual property rights every day not only with videos and tapes, but also with industrial products. Listen to what the gentleman from Florida (Mr. Shaw) said. Listen to the action required by the President if China violates intellectual property to gather information.
We already have that, Madam Speaker. Action is filing a claim under the WTO. That is following the requirements of the WTO dispute settlement resolution process. There is no action whatsoever in this bill. The gentleman from Michigan (Mr. Levin) got it right. This is a bill about saying things about China that people might feel good about. And if you are so inclined to feel good about it and want to vote for it, fine. But to say that this is taking action against China is just wrong. It does not take action against China.
The administration tomorrow could file a claim against China on intellectual property against China if it wanted to, and it should have. The administration yesterday should have filed claims against China for currency manipulation, and it has not, and then allow the WTO process to proceed. But for us to say that we are requiring the administration to make a finding and then collect information which they already have is being tough on China, come on now. Let us be straightforward on this bill.
It is a bill that says things about China that many Members might feel good about, but as far as taking action against China, this bill comes out short.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself 2 minutes. In response on the currency issue, section 6 in this legislation deals with currency manipulation. It does not deal with China specifically. And it requires the Secretary of the Treasury to define currency manipulation and describe actions of foreign countries that will be considered to be currency manipulation.
The problem is Treasury has already done this and found that China was not manipulating its currency despite the fact that we know it undervalues its currency between 15 percent and 40 percent. So I appreciate the gentleman's concern about the competitive problems that we have with American manufacturers and producers trying to compete with an undervalued Chinese currency, but this bill comes up very short.
But I very much appreciate what the gentleman said because we will be come back in a little bit and offer him an opportunity to really do something about the manipulation of China's currency.
Madam Speaker, let me also point out while I am on the floor that legislation filed by the gentleman from New York (Mr. Rangel), H.R. 3306, would take action in this area by requiring the administration to initiate a WTO action to address China's currency manipulation.
Now, that would bring action consistent with our obligations under the World Trade Organization because we would act under the World Trade Organization. That is what we should be doing.
Let me suggest that when you file an action under the WTO, it is not the end of issues, it is the beginning of a process. To ask the Secretary of the Treasury to do another study or come up with another definition, all we do is delay for another year any action against China. And to suggest that there are minor adjustments that they made is in any way dealing with the underlying problems of currency manipulation is just unreal. China announced today that they do not intend to do more. So we need to take action against China.
American jobs are at stake. We can compete if it is on a fair, level playing field. It is not. This bill does not deal with the China currency issue.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself 1 minute to respond to the textile issue that was recently mentioned on the other side.
When we negotiated our WTO accession agreement with China, we provided certain safeguards against the flooding of a market on textiles, knowing that the textile quota would be expiring. The concern many of us have had with China is that our government has not exercised the safeguards that are currently available to us under the agreement negotiated with China. We would like to see the administration be more aggressive in making sure that we do not get a flooded market either here or with trading partners that would have an adverse impact on the textile industry.
That is a major concern in our relationship with the People's Republic of China. The concern is that this legislation does absolutely nothing about that. So I appreciate the comments of my colleague on the other side of the aisle that there is no provision in this bill that would require action against China consistent with the provisions of the WTO accession agreement.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I very much appreciate the discussion that we have had. One of the advantages of the consideration of this bill under a rule as restrictive and repressive as the rule was, is that we do have a chance to have a more open and full debate, and I appreciate that.
I appreciate also the fact that we have been able to go through many of the provisions, including the colloquy that was just recently put on the record. I found that colloquy helpful, because I must tell you I shared the same concerns as to whether we were turning over to dispute settlement panels a decision as to whether we would bring future cases using counterveiling duties. And if I understand my friend, the gentleman from Pennsylvania (Mr. English), that would be a determination made solely by our Commerce Department consistent with U.S. interests, and I certainly agree with that interpretation.
I regret that we have not had the chance to consider amendments or consider a substitute, because I do think that there is general sentiment among the overwhelming majority of the Members of this body to take action against China for its failure to comply with international trading rules. China has violated currency manipulation, which has worked to the disadvantage of American manufacturers, farmers, and producers. China has not enforced intellectual property issues, which has worked to the disadvantage of our entertainment industry, and to our engineering and manufacturing industries.
China has flooded the markets, contrary to its trade agreements on textiles, which has worked to the disadvantage of the U.S. markets. China over and over again has denied access on services and many other areas that require action. So it is appropriate that we should be considering legislation to address the shortcomings of China's compliance with international trade rules.
Now, I think we could have come up with a much stronger bill. The gentleman from New York (Mr. Rangel), as I pointed out earlier, introduced H.R. 3306. And when you compare H.R. 3306 with the bill that is before us, you cannot help but feel that we should have done a much better job.
H.R. 3306 would have applied U.S. countervailing duty laws to China and other nonmarket economies without the additional burdens imposed by the underlying bill. The gentleman from Pennsylvania (Mr. English) quoted from some sources that support that provision. Let me just tell you that Nucor, which is, as you know, a steel company that has to live with subsidized steel from China coming into the U.S. market, opposes the provision. Nucor believes that the extra burden of trying to establish the amount of subsidy when you have to factor additionally for nonmarket economies domestic subsidies, it is a burden that will make the new countervailing duty application meaningless as it relates to China. That is a specific company telling us, who supported the original English bill, they oppose this provision because of the problems.
I could cite other examples, Madam Speaker, but on one hand the bill gives some relief for countervailing duties to nonmarket economies; but on the other, the bill imposes new restrictions that really make it very difficult if it provides any help at all.
The Rangel bill would require the administration to initiate WTO action to address China's currency manipulation. Instead, the underlying bill provides for another study generally by Treasury which will delay action taken against China by another period of time. H.R. 3306, the Rangel bill, would strengthen special China safeguard laws. The underlying bill does nothing on that at all.
So, Madam Speaker, we have a bill that contains the sense of Congress and provisions that I think most of the Members of this body would agree with. It contains some other provisions that are well intended, and I think the majority of the Members of this body would agree with. But I want to make it clear that for those who are claiming this bill is tough on China or tough on enforcing our trade rules with China, it does not do that.
It does say certain things about China that most Members of this body would agree with. The main purpose of this bill was to deal with countervailing duties to nonmarket economies, and it does that in a way that probably will provide no relief. It provides authorizations for additional funds for two agencies that deal with trade, but we have already taken care of that in the appropriation bill.
So I come back to the point of the gentleman from Michigan (Mr. Levin). If you want to feel good and vote for this bill, go ahead and do it. But if you think you are taking action against China, if you believe that this bill will speak to the trade imbalance we currently have with China because of China's failure to adhere to their international responsibilities under the WTO or under the accession agreement with the United States, if you believe that, this bill does not do that. This bill is a missed opportunity because we were not able to have a free and open rule.
So I regret, Madam Speaker, that we are sort of in a dilemma with this bill as to what advice we should give Members. If you look at it as a resolution expressing the sense of Congress, there is nothing wrong with this bill. But if you look at it as a bill to provide action against China, there is really nothing in it to do that.
Mr. Speaker, I yield to the gentlewoman from Ohio (Ms. Kaptur) for the purpose of a unanimous consent request.
(Ms. KAPTUR asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, I offer a motion to recommit.
I am at this time
Mr. Speaker, the only opportunity we have is on a motion to recommit, and this motion to recommit will deal with the currency manipulation issue with China, and will take real action on China's currency manipulation.
Since 1994, China has pegged its currency to the U.S. dollar. This policy has caused China's currency to become undervalued by as much as 40 percent. What this means in practice is that Chinese manufacturers have a significant unfair advantage over U.S. manufacturers because China's currency manipulation makes Chinese exports to the United States cheaper and U.S. exports to China more expensive.
It is simply unacceptable that this administration has allowed China to continue this policy, and the Chinese Government appears to realize that this administration is not serious about stopping China's currency manipulation. Just last year when the vice governor of the People's Bank of China was asked when China would change its currency policy, he stated, ``China has 8,000 years of history. One year, three years, five years, or ten years, for Chinese, that is just a twinkling of an eye.''
Now I know that the administration and many of those on the opposite side of the aisle will point to the fact that China reevaluated its currency by about 2 percent last week. However, I would urge them to read the report in today's Washington Post and New York Times indicating that China's Central Bank issued a statement yesterday to clarify that last week's change was a one-time event, and that we should not expect more changes any time soon.
China's continuing refusal to end its currency manipulation demands action by this body. However, the bill before us today, H.R. 3283, calls on one more report and another delay. The Treasury Department has already issued reports on Chinese currency and has not taken any action.
Mr. Speaker, I have heard my colleagues talk about taking action against China during this debate. Here is an opportunity to do that. What this motion to recommit would do would be to bring the bill immediately back with an amendment that would have the administration file a WTO claim. That is consistent with the WTO. It starts the process. It tells China we are serious. It does not do anything in violation of the WTO. It starts the process, but it tells China that this body is serious about their dealing with their currency issue. That is what China understands. We cannot justify tying a currency to another currency. That is manipulation. That is working to the disadvantage of American manufacturers.
I would hope that we could join together. I have heard many of my Republican and Democratic colleagues tell me it is time to take action against China. This does it in a responsible way. It does not require any tariff; it does not do anything inconsistent with the WTO obligations. It exercises the constitutional responsibility that we have on trade. It is the legislative branch that is responsible for trade. We delegate to the executive branch. We should be willing to assume our responsibility.
If Members believe it is wrong for China to continue to manipulate its currency to the disadvantage of U.S. manufacturers and producers and employment here in this Nation, vote for the motion to recommit so we can finally start action against China on currency manipulation.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.