Clinton, Obama Back Bill to Punish China on Currency

[Omaha Steve]

http://www.bloomberg.com/apps/news?pid=20601068&sid=aSZEvDhwj8XE&refer=economy

(Update1)

By Mark Drajem

May 1 (Bloomberg) -- Senators Barack Obama and Hillary Clinton, the contenders for the Democratic presidential nomination, both back a measure to punish China over the value of its currency.

New York Senator Clinton signed on yesterday, and Illinois Senator Obama followed today, becoming the ninth and 10th senators supporting a bill to give U.S. companies the ability to petition for import duties to compensate for the effect of a weak currency. A weak currency makes a country's products cheaper in world markets.

``It is long past time for the United States to confront the issue of unfair trade with China,'' Obama said in a statement today. ``Too often, China has competed in ways that tilt the playing field inappropriately in its favor.''

The move by the candidates comes less than a week before primaries in North Carolina and Indiana and underscores the growing campaign focus on China and trade. Both states have lost factories and jobs to foreign competition. For weeks, Clinton and Obama have tussled over who was the bigger critic of the North American Free Trade Agreement.

``This indicates that China is coming to bear on the Democratic candidates,'' said Peter Morici, an economist at the University of Maryland and critic of China's currency policies. ``But, they are going to have to show manufacturers and workers that they are serious.''

Backed by Unions

The measure, which is backed by labor unions, textile producers and many U.S.-based factory owners, labels ``currency misalignment'' as a foreign subsidy. That means import duties could be applied to products from any nation artificially undervaluing its currency. While the legislation doesn't single out China, lawmakers have focused their ire on that nation, which last year passed Canada to become the largest source of U.S. imports.

FULL story at link.

[mac2]

1. Be careful they might stop loaning us money to pay for the

debt. We created this monster since Nixon. Schummer (D-IL) talked about that years ago nothing was done. Did they have to wait until an election year? DA!