A.I.M. Joins National Fair Currency Alliance to Address China Imports
Issue
The Associated Industries of Massachusetts (A.I.M.), an employer association
of more than 7,500 Bay State businesses and institutions, announced
that it has joined the Washington, D.C. based Fair Currency Alliance,
a group of organizations representing manufacturing, agriculture, and
labor that will present a "301 Petition" to the Bush Administration
to address the problem of Chinese currency manipulation.
Section 301 of the Trade Act of 1974 allows the United Sates to impose
trade sanctions against foreign countries that violate companies’
rights under trade agreements or are unjustifiable, unreasonable, or
discriminatory. The Alliance has retained the firm Collier Shannon Scott
to develop the petition.
The Alliance believes that the Chinese practice of intervening to control
its currency at a level that is significantly undervalued — by as much
as 40% — against the dollar conveys a trade advantage that is both
undervalued and unreasonable. “The problem is solvable, but China
must reform its current practices if progress is to be made in leveling
the playing field for American producers,” said Richard Lord, A.I.M.’s
President and CEO.
Lord noted that the Fair Currency Alliance supported recent efforts
by the Bush Administration to engage the Chinese government on the currency
issue, but said, “We believe that a section 301 case will give
critical leverage to the Administration in their negotiations with Beijing
by providing the necessary focus to resolve this most serious issue
in a timely manner.” For more information on A.I.M., see http://www.aimnet.org.
