From: / Will Leahy, Manager, China Policy
To: / Asia Task Force, China AmChams
I) Chamber Letter Opposing China Currency Legislation
II) Import Safety Update
III) Currency Legislation Update
I) Chamber Letter Opposing China Currency Legislation
Attached please find a letter from Chamber President and CEO Tom Donohue recently distributed to every member of Congress expressing the Chamber’s opposition to currency legislation (S. 1607 and S. 1677) currently under consideration in the Senate.
The letter highlights, among other concerns, the Chamber’s opposition to legislation considered inconsistent with international trade obligations and likely to spur retaliatory measures against U.S. companies.
II) Import Safety Update
Ways and Means Trade Subcommittee Chairman Sander Levin (D-MI) announced earlier today that he and Oversight Subcommittee Chairman John Lewis (D-GA) will hold a joint hearing on import safety next Thursday October 4.
A formal hearing announcement can be found on the Ways and Means web site.
It remains unclear if this hearing will spawn legislation that may be integrated into a broader China-bill currently under consideration by the Ways and Means committee (please see III below for more information on currency legislation).
Yesterday, the House Energy and Commerce Subcommittee on Health held a hearing on H.R. 3610, “The Food and Drug Import Safety Act of 2007”, introduced last week by Committee Chair John Dingell (D-MI).
Among other provisions, the bill:
  • Proposes the levying of an import user fee on all food and drugs imported in to the United States in order to fund FDA inspections;
  • Requires country of origin labeling for food, drugs, and medical devices;
  • Requires food imported in to the United States to be from a certified country or facility.
The following witnesses testified:
Panel I
Randall L. Lutter, Ph.D.
Deputy Commissioner for Policy
Food and Drug Administration
Panel II
William Hubbard
Senior Adviser
Coalition for a Stronger FDA
Calvin Dooley
President and CEO
Grocery Manufacturers Association
Jill Hollingsworth, D.V.M.
Group Vice President
Food Safety Programs
Food Marketing Institute
Caroline Smith DeWaal
Food Safety Director
Center for Science in the Public Interest
Alan Goldhammer, Ph.D.
Deputy Vice President for Regulatory Affairs
PhRMA
Tom Kubic
Executive Director
Pharmaceuticals Security Institute
Hallock Northcott
President and CEO
American Association of Exporters and Importers
In his testimony, Dr. Lutter highlighted the Bush Administration’s efforts thus far to address food safety concerns through its interagency working group. The working group will be holding a public meeting on the issue this coming Monday October 1 (8 AM to 6 PM in the Jefferson Auditorium, U.S. Department of Agriculture, 1400 Independence Ave, SW south bldg., Washington, DC 20090), and will be releasing its comprehensive policy recommendations in mid-November. At this point the Administration has not taken a position on H.R. 3610.
Several of the industry representatives testifyingexpressed the concern that imposing user fees coulddisadvantage imports and cause trading partners to place similar fees onU.S. exports. The Grocer Manufacturers Association in particular advocated instead a risk based approach to food and drug testing, thus fostering improved import safety without causing congestion at the border.
III) Currency Legislation Update
Earlier today Reps. Tim Ryan (D-OH) andDuncan Hunter (R-CA) circulated the below “Dear Colleague” letterurging members of the House to support trade remedies legislation which Hunter and Ryan have co-sponsored (H.R. 782 and H.R. 2942, respectively).
Both bills allow countervailing duties to be applied to offset currency manipulation. Such a legislative approach is allegedly under consideration as a potential piece of a larger China bill the Ways and Means Committee is planning to draft. At this point though, sources indicate that Ways and Means Chairman Charles Rangel (D-NY) and Trade Subcommittee Chair Sander Levin (D-MI) have yet to discuss or agree upon the appropriate legislative approach. Given the Committee’s current focus on pending free trade agreements, such an effort may be delayed for several more weeks.
Chamber representatives continue to monitor the legislative landscape, and will report relevant information accordingly.
September 27, 2007
Protect US Industries from Foreign Currency Misalignment
Co-sign a Letter Urging Ways and Means to Include Countervailing Duty
Language in any Currency Related Legislation
Please Sign-on by COB Wednesday, Oct 3rd
Dear Colleague:
As you may know, progress continues to be made on efforts to seek remedies for U.S. industries injured by unfairly misaligned foreign currencies. Our legislation (H.R. 782 and/or H.R. 2942) would address the issue of misaligned currencies through the application of both countervailing duty laws and anti-dumping laws.
However, there is an effort by some to exclude the application of countervailing duty laws to currency undervaluation. The Senate legislation is focused on anti-dumping laws, and in our opinion does not go far enough.
We urge you to join us in signing the attached letter to the Chairman and Ranking Member of the House Ways and Means Committee. This letter simply emphasizes our support for the inclusion of countervailing duty laws in any legislation moving forward.
To sign on to the letter, please contact Philip Fawcett () in Congressman Ryan’s office or Lorissa Bounds () in Congressman Hunter’s office.
Sincerely,
/s/ /s/
Tim Ryan Duncan Hunter
Member of Congress Member of Congress
October 3, 2007
Honorable Charles B. Rangel Honorable Jim McCrery
Chairman Ranking Member
Committee on Ways and Means Committee on Ways and Means
1102 LongworthOfficeBuilding 1102 LongworthOfficeBuilding
Washington, DCWashington, DC
Dear Chairman Rangel and Ranking Member McCrery:
As you know, momentum has been building during this 110th Congress to pass substantive legislation addressing numerous international monetary and trade issues. As Members of Congress who have supported H.R. 782 and/or H.R. 2942 in the 110th and H.R. 1498 in the 109th, we have a particular interest in seeing that the application of countervailing duty (CVD) laws to misaligned foreign currencies be included in any currency related legislation.
We understand that your committee may be considering legislation to address China’s prolonged intervention to undervalue its exchange rate. We also understand that Senate bills recently passed out of committee on this subject do not include the application of CVD laws. We strongly urge that any legislation that moves through the House Ways & Means Committee include either H.R. 782 or H.R. 2942 in order to provide effective measures to counter fundamental misalignment of currencies. We are open to supporting other remedies as long as they apply to all countries that manipulate their currency, and are immediately available to injured manufacturers and workers.
We appreciate all of the committee’s work so far this Congress on currency misalignment issues. It is vital that strong action consistent with international law be taken now to impress upon such countries that competitive currency depreciation is unacceptable. Unless this serious problem is meaningfully confronted, the situation will worsen and international trade and investment and the global economy will suffer to the detriment of all countries.
Sincerely,
This message and its contents are intended solely for the use of the Asia Task Force addressee. If you have received this message in error, please notify the sender immediately.
/ The U.S. Chamber of Commerce's is the world's largest business federation, representing 3 million businesses and organizations of every size, sector, and region.

U.S. Chamber of Commerce | 1615 H Street, NW | Washington, DC20062-2000