Page 19 - SCBJ-201612
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Submitting currency legislation under certain circumstances to start the use of antidumping or countervailing
to Congress, presumably to allow the bilateral engagement with the country on duties to counteract the supposed damage
Administration to more easily declare the issue, including urging policy reforms. to the US economy from the currency
China (and other countries) currency interventions. Such a change would
manipulators and impose specific If after one year, the trading partner has likely violate US obligations under the
sanctions if a trading partner does not not addressed US concerns, the President World Trade Organization’s Antidumping
comply with US requests to alter its is authorized to: Agreement, however, potentially leading to
exchange rate policies; • Prohibit the Overseas Private a challenge by China and a lost case for the
Investment Corporation (OPIC) from US at the WTO.
• Ordering the Committee on approving any new financing for a project
Foreign Investment in the US (CFIUS) in that country - irrelevant in the case of Identifying Trade Abuses...
to include food security in its national China, since OPIC has been barred from
security reviews of foreign acquisitions; activity there since sanctions were put in Trump’s plan for a report on unfair trade
place since the late 80’s; practices that impact American workers
• Using reciprocity as a basis for is largely already in place. The National
reviewing proposed foreign investment in • Prohibit the federal government Trade Estimate, produced by the Office of
the United States. from procuring goods or services from the US Trade Representative with input
that country, as long as it can be done from all US government agencies, is an
Currency Manipulation in a manner that is consistent with annual summary of the trade barriers
US obligations under international American companies face overseas. The
Trump has repeatedly stated that China agreements and would not impose an report includes steps the US government
is manipulating its currency to make its unreasonable cost on US taxpayers; has taken to address those barriers. A
products cheaper, and says that he plans to modification of the report to include an
label the country a currency manipulator • Instruct the US Executive assessment of the impact on American
on his first day in office. Data that show Director of the IMF to call for workers would presumably be a minor
China’s exchange rate interventions over additional rigorous surveillance of the change.
the past year have been to strengthen macroeconomic and exchange rate policies
the Renminbi (RMB) against rapid of that country and, as appropriate, formal ...and Imposing Tariffs
depreciation, which under current law consultations on findings of currency
would not support the manipulation manipulation; and/or Trump suggested several times during
designation. A manipulation finding leads his campaign that he would put a 45
to twelve months of negotiations, followed • Instruct the US Trade percent tariff on Chinese imports into the
by various actions that do not include Representative to take into account the United States, though he did not mention
tariffs. The incoming Administration extent to which the country has failed this proposal in the final months before
therefore may first seek to change the law to adopt appropriate policies to correct the election. Since his election, some
that governs exchange rate monitoring and undervaluation and surpluses when commentators2 have suggested the option
increase the sanctions the United States assessing whether to enter into bilateral was still under consideration, although
could pursue if China did not comply with or regional trade agreements with that others have suggested a less broad-based
the Administration’s requests. country or participating in negotiations approach3 would be considered.
with respect to a bilateral or regional trade
Under the current statute, the Treasury agreement with that country - which would There are options in US law for presidents
Department is required to evaluate the impact a bilateral investment treaty with to impose tariffs outside of the normal
macroeconomic and currency exchange China, should that even be an initiative anti-dumping and countervailing duty
rate policies for major trading partners that the Trump administration might processes and without congressional
twice a year, with reports due on April pursue.
15 and October 15. If a country has a 2 some commentators: http://www.breitbart.com/
significant bilateral trade surplus with If the Trump administration were to radio/2016/11/14/peter-morici-trump-trade-policies-
the United States, has a current account seek to change US law in this area, the end-years-politicians-selling-out-american-workers/
surplus, and has engaged in persistent most likely approach would be similar to
one-sided intervention in foreign exchange previous legislation proposed in the US 3 others have suggested a less broad-based approach:
markets, the Treasury Secretary is required Senate and House of Representatives: https://www.washingtonpost.com/news/wonk/
wp/2016/11/10/a-trump-policy-adviser-is-already-
walking-back-tough-talk-on-trade/
to Congress, presumably to allow the bilateral engagement with the country on duties to counteract the supposed damage
Administration to more easily declare the issue, including urging policy reforms. to the US economy from the currency
China (and other countries) currency interventions. Such a change would
manipulators and impose specific If after one year, the trading partner has likely violate US obligations under the
sanctions if a trading partner does not not addressed US concerns, the President World Trade Organization’s Antidumping
comply with US requests to alter its is authorized to: Agreement, however, potentially leading to
exchange rate policies; • Prohibit the Overseas Private a challenge by China and a lost case for the
Investment Corporation (OPIC) from US at the WTO.
• Ordering the Committee on approving any new financing for a project
Foreign Investment in the US (CFIUS) in that country - irrelevant in the case of Identifying Trade Abuses...
to include food security in its national China, since OPIC has been barred from
security reviews of foreign acquisitions; activity there since sanctions were put in Trump’s plan for a report on unfair trade
place since the late 80’s; practices that impact American workers
• Using reciprocity as a basis for is largely already in place. The National
reviewing proposed foreign investment in • Prohibit the federal government Trade Estimate, produced by the Office of
the United States. from procuring goods or services from the US Trade Representative with input
that country, as long as it can be done from all US government agencies, is an
Currency Manipulation in a manner that is consistent with annual summary of the trade barriers
US obligations under international American companies face overseas. The
Trump has repeatedly stated that China agreements and would not impose an report includes steps the US government
is manipulating its currency to make its unreasonable cost on US taxpayers; has taken to address those barriers. A
products cheaper, and says that he plans to modification of the report to include an
label the country a currency manipulator • Instruct the US Executive assessment of the impact on American
on his first day in office. Data that show Director of the IMF to call for workers would presumably be a minor
China’s exchange rate interventions over additional rigorous surveillance of the change.
the past year have been to strengthen macroeconomic and exchange rate policies
the Renminbi (RMB) against rapid of that country and, as appropriate, formal ...and Imposing Tariffs
depreciation, which under current law consultations on findings of currency
would not support the manipulation manipulation; and/or Trump suggested several times during
designation. A manipulation finding leads his campaign that he would put a 45
to twelve months of negotiations, followed • Instruct the US Trade percent tariff on Chinese imports into the
by various actions that do not include Representative to take into account the United States, though he did not mention
tariffs. The incoming Administration extent to which the country has failed this proposal in the final months before
therefore may first seek to change the law to adopt appropriate policies to correct the election. Since his election, some
that governs exchange rate monitoring and undervaluation and surpluses when commentators2 have suggested the option
increase the sanctions the United States assessing whether to enter into bilateral was still under consideration, although
could pursue if China did not comply with or regional trade agreements with that others have suggested a less broad-based
the Administration’s requests. country or participating in negotiations approach3 would be considered.
with respect to a bilateral or regional trade
Under the current statute, the Treasury agreement with that country - which would There are options in US law for presidents
Department is required to evaluate the impact a bilateral investment treaty with to impose tariffs outside of the normal
macroeconomic and currency exchange China, should that even be an initiative anti-dumping and countervailing duty
rate policies for major trading partners that the Trump administration might processes and without congressional
twice a year, with reports due on April pursue.
15 and October 15. If a country has a 2 some commentators: http://www.breitbart.com/
significant bilateral trade surplus with If the Trump administration were to radio/2016/11/14/peter-morici-trump-trade-policies-
the United States, has a current account seek to change US law in this area, the end-years-politicians-selling-out-american-workers/
surplus, and has engaged in persistent most likely approach would be similar to
one-sided intervention in foreign exchange previous legislation proposed in the US 3 others have suggested a less broad-based approach:
markets, the Treasury Secretary is required Senate and House of Representatives: https://www.washingtonpost.com/news/wonk/
wp/2016/11/10/a-trump-policy-adviser-is-already-
walking-back-tough-talk-on-trade/
