Currency Reform for Fair Trade Act 2010
Encyclopedia
The Currency Reform for Fair Trade Act 2010 was a bill by the Congress of the United States that sought punitive trade tariffs on countries that have perceived unfair competitive advantaged by such measures as currency manipulation.
The Act followed controversy as to China artificially keeping the yuan
lower than its actual value (some say by at least 20%). Further to China there were other countries, most notably Japan, that took measures to weaken their currency.
and the Senate Finance committee
on 28 September 2010. The following day it was passed in the House of Representatives
by a vote of 348 in favour, 79 opposed and 6 abstentations.
The House bill amended the Tariff Act of 1930 in that this version require the president's administration to: (1) determine, based on certain requirements, if the currency exchange rate
of a country that exports goods or services to the US is "fundamentally and actionably undervalued or overvalued" against the American dollar for an 18-month period; and (2) should there be deemed a violation, the administration should to take action in the form of a "countervailing duty or antidumping duty" so as to offset such a misalignment. It also said the currency of a non-market economy
would be subject to the provisions of the Act.
The Act followed controversy as to China artificially keeping the yuan
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
lower than its actual value (some say by at least 20%). Further to China there were other countries, most notably Japan, that took measures to weaken their currency.
Bill
The bill was introduced by Rep. Timothy Ryan [D-OH] on 13 May 2010. It was passed on to the House Ways and Means committeeUnited States House Committee on Ways and Means
The Committee of Ways and Means is the chief tax-writing committee of the United States House of Representatives. Members of the Ways and Means Committee are not allowed to serve on any other House Committees unless they apply for a waiver from their party's congressional leadership...
and the Senate Finance committee
United States Senate Committee on Finance
The U.S. Senate Committee on Finance is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection...
on 28 September 2010. The following day it was passed in the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
by a vote of 348 in favour, 79 opposed and 6 abstentations.
The House bill amended the Tariff Act of 1930 in that this version require the president's administration to: (1) determine, based on certain requirements, if the currency exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
of a country that exports goods or services to the US is "fundamentally and actionably undervalued or overvalued" against the American dollar for an 18-month period; and (2) should there be deemed a violation, the administration should to take action in the form of a "countervailing duty or antidumping duty" so as to offset such a misalignment. It also said the currency of a non-market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
would be subject to the provisions of the Act.