Washington, DC – Congressman Bill Shuster voted today in support of the United States Trade Rights Enforcement Act, which would hold China accountable for its unfair trade practices against American manufacturing firms.  China has illegally subsidized its companies to give them an unfair trade advantage against American manufacturers. 

“I have no doubt that U.S. companies can compete with any other around the world, however it has to be done on a level playing field,” said Shuster.  “We have the best workforce in the world, particularly in central and western Pennsylvania, combined with an unparalleled entrepreneurial spirit, and it is not fair to allow other countries to provide illegal subsidies.” 

H.R. 3283 includes provisions that would hold China accountable for their trade practices.  The most significant condition allows the United States to slap countervailing duties on non-market economies, like China, for deliberately and illegally subsidizing their companies.  This would, in effect, reduce the inflated competitive advantage created by the subsidy. 

“These sanctions have hurt our companies for too long, and this bill is one of the first necessary steps to stopping unfair, illegal trade subsidies by the Chinese government.  It provides a variety of mechanisms to ensure that countries play by the rules,” said Shuster. 

In 1994, China devalued its currency and pegged it to the U.S. dollar.  This manipulation has given Chinese companies another unfair advantage over American firms.  By revaluing its currency, China effectively reduced the price of their goods and made U.S. goods more expensive, and according to economists created a 40 percent pricing benefit for Chinese companies.  Recently though, because of intense pressure from the United States Congress and President Bush’s Administration, China removed its peg to the U.S. dollar and now will allow it to float against a handful of currencies. 

“The currency revaluation is proof that our hard work is paying off, but there is more to do,” Shuster added.  “We have had some successes and, in order to make sure our companies have a level playing field in the global market, we need to keep the pressure on countries using illegal trade policies that hurt our manufacturers.”