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Trade deficit with China grow by nearly 12% in 2007
09 Jun '07
2 min read
According to figures released by the U.S. government this morning, the U.S. trade deficit with China grew to $19.4 billion for the month of April 2007.
For the year, the U.S. trade deficit with China is up 11.9 percent. At this pace, the U.S. trade deficit with China will climb from last year's record of $232 billion in 2006 to a projected new record of $260 billion in 2007.
"The U.S. trade deficit with China is out of control. It is a key reason why the United States has lost more than three million manufacturing jobs since 2001," said American Manufacturing Trade Action Coalition (AMTAC) Executive Director Auggie Tantillo.
"The years of Bush Administration talks with China have produced negligible results. Congress now must forcefully act," Tantillo continued.
To address the China problem, two actions Congress immediately should take are passing:
• H.R. 2600, the Border Tax Equity Act sponsored by Congressmen Bill Pascrell, Duncan Hunter, Mike Michaud, and Walter Jones.
This legislation would negate the nearly $400 disadvantage to U.S. goods producers and service providers caused by foreign border-adjusted taxes.
Conservatively, U.S. goods producers alone were disadvantaged by an estimated $46 billion because of China's VAT rebates on exports and VAT impositions on imports in 2006.
• H.R. 782, the Fair Currency Act of 2007, sponsored by Congressmen Tim Ryan and Duncan Hunter in the House and its companion, S. 796, sponsored by Senators Jim Bunning and Debbie Stabenow.
This legislation would make fundamental currency misalignment an actionable subsidy under U.S. countervailing duty law. The legislation also would codify the application of U.S. CVD law to non-market economies such as China.
Experts estimate that China's currency is undervalued by as much as 15 to 40 percent.
For the year, the U.S. trade deficit with China is up 11.9 percent. At this pace, the U.S. trade deficit with China will climb from last year's record of $232 billion in 2006 to a projected new record of $260 billion in 2007.
"The U.S. trade deficit with China is out of control. It is a key reason why the United States has lost more than three million manufacturing jobs since 2001," said American Manufacturing Trade Action Coalition (AMTAC) Executive Director Auggie Tantillo.
"The years of Bush Administration talks with China have produced negligible results. Congress now must forcefully act," Tantillo continued.
To address the China problem, two actions Congress immediately should take are passing:
• H.R. 2600, the Border Tax Equity Act sponsored by Congressmen Bill Pascrell, Duncan Hunter, Mike Michaud, and Walter Jones.
This legislation would negate the nearly $400 disadvantage to U.S. goods producers and service providers caused by foreign border-adjusted taxes.
Conservatively, U.S. goods producers alone were disadvantaged by an estimated $46 billion because of China's VAT rebates on exports and VAT impositions on imports in 2006.
• H.R. 782, the Fair Currency Act of 2007, sponsored by Congressmen Tim Ryan and Duncan Hunter in the House and its companion, S. 796, sponsored by Senators Jim Bunning and Debbie Stabenow.
This legislation would make fundamental currency misalignment an actionable subsidy under U.S. countervailing duty law. The legislation also would codify the application of U.S. CVD law to non-market economies such as China.
Experts estimate that China's currency is undervalued by as much as 15 to 40 percent.
American Manufacturing Trade Action Coalition
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