U.S. Trade Enhancement Act of 2006 Introduced in Senate
Senators Grassley (R-IA) and Baucus (D-MT), Chairman and Ranking Member of the Senate Finance Committee, recently introduced "The U.S. Trade Enhancement Act of 2006", legislation aimed at resolving currency and trade enforcement issues between the U.S. and other countries (namely China). The U.S. Trade Enhancement Act of 2006 would give the U.S. government new rules and new tools to encourage nations to value their currency appropriately and to abide by international trade agreements.
The bill requires the Treasury Department to engage the International Monetary Fund (IMF) and other countries to resolve major currency imbalances with the dollar. It provides for specific consequences for nations that refuse to adopt appropriate policies that facilitate the fair valuation of their currency, including: disapproval of Overseas Private Investment Corporation (OPIC) insurance; disapproval of international financing (e.g., at the Asian Development Bank); opposition to additional voting power in the IMF; and retention of non-market economy status for purposes of U.S. antidumping law.
The bill will also create a new Assistant Secretary of the Treasury to focus more directly on currency issues and exchange rates. The U.S. Trade Enhancement Act would also give the U.S. Trade Representative (USTR) new tools and authority to deal with specific trade enforcement problems prioritized by Congress. The bill requires USTR to produce, with Congress, an annual report identifying the most significant market access barriers to American exporters. It also would create a new, Senate-confirmed trade enforcement officer, who will be supported by a task force drawn from numerous federal agencies.
The text of the bill has not been issued, however a summary of the bill can be found here.
|posted by Douglas N. Jacobson| Permalink 
