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Passage of Currency Reform to Make FTAs Fairer

by 5m Editor
12 October 2011, at 10:31am

US - National Farmers Union (NFU) President Roger Johnson has welcomed moves by the Senate to help correct harmful economic trading conditions for farmers.

After the US Senate passed S. 1619, the Currency Exchange Rate Oversight Reform Act of 2011, Mr Johnson said: "We are very pleased that the Senate passed the Currency Exchange Rate Oversight Reform Act, because it is a comprehensive piece of legislation that uses US trade law to counter the economic harm caused to US farmers, ranchers and manufacturers due to currency manipulation. Before our trade can truly be fair, we need to ensure that all countries are playing by the same rules.

"Unbalanced trade agreements negatively impact the economy. By ensuring that the currencies of other countries are valued fairly, US companies are able to compete on a level playing field, which helps to create and preserve jobs. The US has been harmed many times before because other countries illegally manipulated their currency, and we continue to be harmed even today.

"An Economic Policy Institute study found that if the Chinese yuan were revalued to its equilibrium level, up to 2.25 million jobs could be created through an increase in US gross domestic product. These are desperately needed jobs that the US has lost because of the illegal actions of other countries. This is legislation that garnered overwhelming bipartisan support in the House last year, passing 348-79. We urge the House to pass this bill and the president to sign it as quickly as possible to correct this problem."