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CHINA CURRENCY COALITION WASHINGTON, D.C.

FOR IMMEDIATE RELEASE
Contact: Meg Mullery 202.342.8439
mmullery@colliershannon.com

Statement of China Currency Coalition in Response to USTR Rejection of 301 Petition

(Washington, DC) (September 9, 2004) – Following statement of the China Currency Coalition responds to today’s announcement by the Office of the United States Trade Representative that the Bush Administration has rejected consideration of the unfair trade action that the coalition filed earlier today against China. The action, filed under Section 301 of the U.S. Trade Laws, accuses China of violating its global trading obligations through policies that artificially undervalue its currency, the yuan. The coalition contends that the yuan is undervalued by about 40%, placing unjustifiable burdens and restrictions on U.S. companies and commerce in violation of U.S. trade laws and global trading rules.

STATEMENT

The China Currency Coalition regrets the rejection by United States Trade Representative Zoellick, on behalf of the Bush Administration, of the Section 301 unfair trade petition filed earlier this morning against China. The more than 200-page petition was rejected within hours, raising questions as to whether it was even read by administration officials. This is undoubtedly the fastest rejection of such a petition in history. We also take issue with the characterization by the government that the recommended action would be “reckless,” in that we are simply requesting that the administration follow WTO rules and procedures in seeking corrective action by China.

China’s undervalued currency constitutes a prohibited export subsidy. The recommended action would be to bring the case to the World Trade Organization for expedited dispute resolution. If China does not properly revalue its currency, the U.S. would request an authorization for the United States to offset the Chinese subsidy by an equivalent amount of tariffs. This is the normal remedy applied in subsidy cases.

The China Currency Coalition is an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing by seeking an end to Chinese currency manipulations.