April Trade Deficit with China—Released Yesterday—Shows an Increase of 34 Percent Over March Deficit
Washington, D.C. — Following new figures that show a 34 percent jump over last month’s U.S.-China trade deficit, U.S. Senator Bob Casey (D-PA) along with Senators Sherrod Brown (D-OH), Jeff Sessions (R-AL), Chuck Schumer (D-NY), Lindsey Graham (R-SC), Debbie Stabenow (D-MI), Richard Burr (R-NC), and Susan Collins (R-ME), today introduced the Currency Exchange Rate Oversight Reform Act of 2013, bipartisan legislation that would reform and enhance oversight of currency exchange rates. Specifically, the bill would use U.S. trade law to counter the economic harm to U.S. manufacturers caused by currency manipulation, and provide consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment. The senators’ introduction comes in advance of upcoming talks between President Obama and Chinese President Xi.
“Pennsylvania has seen too many jobs shipped overseas because of unfair trade practices,” said Senator Casey. “China’s currency manipulation amounts to cheating and it has put our workers and our economy at a disadvantage. The U.S. has allowed this practice to continue too long without consequence and it is time to level the playing field. ”
A December 2012 report by the Peterson Institute for International Economics concluded that currency manipulation by foreign governments had cost the U.S. from 1 million to 5 million jobs and increased the U.S. trade deficit by $200 billion to $500 billion per year.
The Economic Policy Institute (EPI) estimates that ending currency manipulation in the United States would increase U.S. net goods exports by between $184.1 billion and $387.5 billion; increase U.S. gross domestic product (GDP) by between $225.02 billion and $473.68 billion; and increase total American salaries by between $112.99 billion and $237.84 billion. EPI also found that addressing currency manipulation could support the creation of 2.25 million American jobs.
A complete summary of the Currency Exchange and Oversight Reform Act of 2013 can be read HERE.