LEGISLATIVE ALERT

Your Efforts Are Needed Now to Support Trade Legislation to Help the Surface Finishing Industry and U.S. Manufacturing Remain Competitive

Contact Your Representative to Support Trade Legislation

Trade legislation has been proposed to help U.S. manufacturers remain competitive in global and domestic markets.  The Ways and Means Committee has scheduled an August 2, 2007 hearing on trade legislation that has been introduced in the House of Representatives.  As part of the surface finishing industry’s efforts to find ways to remain competitive, please contact your U.S. Representative and urge support of the key trade legislation that is pending in the House. 

A sample letter to send to your legislator urging support of trade legislation to help U.S. manufacturing is attached.  Copy the letter onto your company’s letterhead, fill in the information about your business and number of employees, and fax or email it to your Representative.  To identify your Representative and his or her contact information, go the House website at http://clerk.house.gov/member_info/index.html and click on ”Write Your Representative.“  Representatives can also be identified by entering your zip code. 

If you have any questions or need any assistance identifying your representative or finding contact information, please contact Christian Richter or Jeff Hannapel at crichter@thepolicygroup.com or jhannapel@thepolicygroup.com.  Thank you in advance for your participation in this critical effort to keep the surface finishing industry competitive in domestic and global markets.

Summary of Key Trade Legislation Proposals

Ryan-Hunter (HR 2942):  Representatives Duncan Hunter (R-CA) and Tim Ryan (D-OH) introduced a new, revised bill on June 28, 2007 to address trade imbalances and currency manipulation practices by countries such as China.  The proposed legislation (H.R. 2942) entitled, The Currency Reform for Fair Trade Act of 2007, provides for the identification of misaligned currency, requires U.S. action to correct the misalignment, and provides other remedies for unfair trade practices.  H.R. 2942 has been referred to the House Ways and Means, Financial Services, and Foreign Affairs committees. 

This new bill is intended to be a compromise effort to find common ground among the several legislative approaches that have been introduced in the House and the Senate to address trade reform issues, including the previous Ryan-Hunter bill, H.R. 782.  Currency manipulation by the Chinese government in conjunction with other factors is responsible for the significant increase in the U.S. trade deficit with China – from $30 billion in 1994 to a projected $230 billion in 2007. This bill would provide remedies for U.S. manufacturers to address illegal unfair trade practices under U.S. and international law. 

Last week, approximately 30 members of the surface finishing industry participated in an industry conference call with Representative Duncan Hunter, who continues to champion a bipartisan effort to address illegal trade practices that give U.S. competitors an unfair advantage in the global marketplace.  During the call, the participants discussed trade legislation pending in the House. Following up from the industry’s advocacy efforts during the NASF Washington Forum in May, Representative Hunter again urged participants to express their support for this legislation by contacting their members of Congress.

Davis-English (HR 1229):  Representatives Artur Davis (D-AL) and Philip English (R-PA) introduced legislation on February 28, 2007 a bill that would apply countervailing duties to non-market economies such as China.  The bill would also authorize the use of alternative methodologies to determine whether a subsidy is counter-available with respect to China.  Under this legislation, the U.S. International Trade Commission would conduct a study on how China uses government intervention to promote investment, employment and exports.

This bill was referred to the Ways and Means and House Rules committees.  Hearings on this bill were held in the Ways and Means Committee on March 7, 2007 and in the Subcommittee on Trade on March 15, 2007.

Conclusion

In light of more recent developments relating to Chinese food and drug safety requirements, leaded children’s toys and a range of product quality, intellectual property and other concerns, these proposals are gaining steam in Congress.  The upcoming hearings on Capitol Hill are a further step toward leveling the playing field on trade and competitiveness for U.S. ”main street“ manufacturing.