The Retail Industry Leaders Association (RILA) is spearheading business opposition to the Currency Exchange Rate Oversight Reform Act legislation in the U.S. Senate. In a letter to lawmakers, RILA, the Sporting Goods Manufacturing Association, the American Apparel and Footwear Association and 29 other trade groups agreed that China’s currency was undervalued, but warned the measure could trigger a trade war that would undermine the recovery.
“RILA supports bilateral and multilateral efforts to press China to enact broader financial sector reforms that will allow market forces to determine the value of China's currency,” said Stephanie Lester, RILA's vice president for international trade.
The Currency Exchange Rate Oversight Reform Act was reintroduced in May by U.S. Senators Charles Schumer, D-NY, Debbie Stabenow, D-MI and Lindsey Graham, R-SC and currently has 18 co-sponsors. It designates undervalued currency as a subsidy, granting the government the authority to adjust antidumping duties and impose countervailing duties on a wide range of Chinese products.
Lester said the Chinese government’s recent decision to allow its currency to resume floating indicated trade negotiations were bearing some fruit.
