SENATOR SUSAN COLLINS INTRODUCES LEGISLATION TO ENSURE THAT CHINA ENGAGES IN FAIR TRADE

WASHINGTON, DC-- Senator Susan Collins has introduced the "United States Trade Rights Enforcement Act," which provides the US government the tools to help ensure that China engages in fair trade. Senator Collins has been working in the Senate to revise current trade laws to require that all countries doing business with the US are operating under the same rules that provide for fair competition for American manufacturers. Senator Collins's bill is the Senate companion to HR 3283 and is supported by Congressman Phil English (R-PA) and Congressman Bill Thomas (R-CA), who chairs the House Ways and Means Committee.

"America's manufactures have the ability to create some of the best products in the world. But huge, unfair subsidies to companies in non-market economies such as China make it very difficult for American manufacturers to compete. The US government must be provided more tool to help level the playing field," said Senator Collins.

Frank Vargo, Vice President for International Economic Affairs for the National Association of Manufacturers said, "We strongly support this bill and commend Sen. Collins for introducing it. Subsidies have no role in international trade and this bill ensures that American companies have a tool to address them. The bill''s other enforcement provisions will increase confidence that when the United States enters into trade agreements, they will be enforced. It is a good, pro-trade bill and should be supported by everyone."

Senator Collins' legislation is a compilation of the "Stopping Overseas Subsidies", (SOS) Act, which she authored, as well as additional provisions to encourage fair trade. A summary of her legislation is as follows:

• Authorizes the application of the US countervailing duty law to exports from non-market economies such as China.

• Establishes a system of comprehensive monitoring of Chinese compliance with its trade obligations on: intellectual property rights; market access for US goods, services, and agriculture; and accounting of Chinese subsidies. This provision would require the President to issue a semi-annual report to Congress on whether the Chinese government is meeting its obligations and what the President proposes to do if China fails to comply with its requirements.

• Authorizes an additional $6 million per year for USTR, beyond the President's request, for the General Council, the Office of Monitoring and Compliance, the Office of China Affairs, and the Office of Japan, Korea, and APEC Affairs.

• Requires Treasury to submit a report to Congress that defines currency manipulation.

• Suspends for three years the availability of bonds for new shippers in antidumping cases and instead requires cash deposits to avoid situations in which shippers default on their obligations.

• Authorizes funding for the International Trade Commission and requires an ITC report on the sensitivity of US trade and jobs to current policies.

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